O on September 15, marking a pivotal shift in leadership at a time when Kering’s future looks less assured than it did even just a few years ago. Longtime CEO François-Henri Pinault, who will remain chairman of the board, described the move as part of a broader governance overhaul. “From 2023, I launched a reflection on the evolution of the group’s governance. It was in this context that I met Luca de Meo,” Pinault said.  “His experience at the helm of an international listed group, his sharp understanding of brands, and his sense of a strong and respectful corporate culture convinced me that he is the leader I was looking for to bring a new vision and steer this chapter in our group’s history.” Who is the new CEO? On paper, de Meo is an unlikely choice – a car guy with no background in fashion.   A veteran of Renault, Volkswagen, Fiat and Audi, he has spent three decades engineering turnarounds in an industry marked by fierce competition and slim margins.  Born in Milan, the 57-year-old has spent his entire career in the automotive industry. He started at Renault in the early 1990s and went on to hold senior positions at Toyota, Fiat, Audi and Volkswagen. Most recently, he served as CEO of Renault Group, where he helped steer the carmaker through a severe downturn, pandemic disruption and strained relations with Japanese partner Nissan. When de Meo joined Renault in 2020, the company was reporting losses of more than €8 billion. Within 18 months, he had helped restore profitability by cutting production capacity, reducing global headcount and narrowing Renault’s focus. At the same time, he doubled down on hybrid and electric vehicle development, preparing the company for a post-combustion engine future. These credentials are likely what made him attractive to Kering’s board. “Kering has had two decades of growth, but with that stalling, it was essential to bring in an outside voice and look at the future in a different way,” Mathew Dixon, partner at DHL Global, told Inside Retail. “Luca de Meo, brings calm commercial pragmatism, but also has a strong eye for product and brand. When he joined Renault, the business was financially challenged, he made some tough decisions and turned it around by making the marque desirable again – he is well-equipped to transform Kering in the same way.” While the optics are surprising, precedent suggests that luxury has grown more open to talent from adjacent consumer industries. Prada’s turnaround has been largely attributed to Andrea Guerra, who joined from sunglass titan Luxottica. Chanel’s global CEO, Leena Nair, was plucked from Unilever. Pietro Beccari and Patrice Louvet, who now run Louis Vuitton and Ralph Lauren respectively, also cut their teeth in fast-moving consumer goods. “A new leader from outside will create a clean slate internally and it is likely there will be changes ahead,” Dixon said. “The timing is right with Demna about to formally switch to Gucci, which, alongside Saint Laurent, will be the priority. His appointment will buy some breathing space by boosting the share price, but analysts will be looking for swift and decisive leadership to create the confidence Kering has the right person at the helm.” Gucci’s woes and the road ahead Kering’s challenges have become hard to ignore. Its flagship brand, Gucci, which once dazzled under the creative genius of Alessandro Michele and the business savvy of Marco Bizzarri, has lost its lustre. In 2024, Gucci’s revenues fell to €7.7 billion, down 23 per cent year-on-year. First-quarter results this year revealed an even bleaker picture: a 25 per cent plunge in comparable sales.  Investor patience is thinning. When Gucci recently named Balenciaga’s Demna as its new creative director, Kering’s stock tumbled 13 per cent in a single day, wiping out $3 billion in market value. While creative direction often dominates headlines in luxury, Kering’s problems may lie deeper. Operational fragmentation, overreliance on a single brand and an inconsistent retail strategy have all been cited by analysts as structural vulnerabilities. “The evolution of the luxury industry requires a leader to question the existing playbook as the way Kering and other groups have operated for the past decade is no longer bringing the same success,” Dixon said.  “Consumer expectations have changed and the Kering brands have to respond to that – de Meo will banish any complacency that still lingers.”