Kering plans China store cuts as it rebuilds Gucci’s appeal

What happened China was a central focus at Kering’s Capital Markets Day in Florence, where CEO Luca de Meo outlined a measured and structured approach to the market as part of the group’s broader “ReconKering” transformation plan. “China is not just a market; it is a great civilization, with a unique cultural depth and some of the most discerning clients in the world,” says Luca de Meo, emphasizing a strategy grounded in respect for local culture and consumer expectations. The renewed focus comes against softer recent performance in the wider region. In the first quarter of 2026, Kering’s Asia-Pacific business declined, with Asia ex-Japan sales down around 4%, largely reflecting weaker trends in China, while Gucci’s global sales decline was partly driven by continued softness in the region. Within this context, China remains a priority geography, but the growth model is evolving. Rather than focusing on expanding physical presence, Kering is shifting toward enhancing brand desirability, improving client engagement, and refining distribution. This includes plans to rightsize the retail network, with around 130 net store closures in China by 2030, alongside a double-digit increase in marketing and commercial activation investment. Refining distribution and brand positioning The recalibration is particularly relevant for Gucci, where rebuilding brand desirability in China has been identified as a key priority. “In the past few years, Gucci has lost desirability in China as it focused mostly on enlarging the distribution of its products, diluting the brand equity,” De Meo says. Going forward, the strategy centers on a more focused product offer, tighter control of distribution, and clearer brand narratives tailored to local audiences. At the same time, greater emphasis will be placed on client engagement, including the development of higher-value customer segments such as VICs (Very Important Clients), with a target to increase their contribution to 25% globally for Gucci. Across the group, China is expected to become more digital and experience-driven, with growth supported by integrated activations that combine retail, content, and clienteling. Strengthening local engagement Kering also signaled a more embedded approach to the Chinese market through partnerships and local initiatives. The group’s minority investment in Icicle reflects this direction. “When I met Ye Shouzeng and Shawna Tao in Shanghai, I was deeply impressed by the strength and singularity of Icicle,” De Meo tells Jing Daily, highlighting the brand’s cultural positioning and craftsmanship. The partnership aims to combine Icicle’s local expertise with Kering’s global capabilities, while supporting the latter’s international expansion. At the same time, initiatives such as Kering CRAFT, developed with Shanghai Fashion Week, are intended to support emerging Chinese creatives and deepen the group’s understanding of the market. Brand-level strategies will also incorporate China more explicitly. Saint Laurent plans to expand its presence in Asia, including staging shows in the region, while Bottega Veneta is increasing marketing investment by 10% to strengthen engagement and visibility in China, alongside enhanced VIC offerings such as made-to-order services. Balenciaga, which has shown strong momentum in Asia, is aiming to balance that performance across other regions. The Jing Take: A shift toward quality of growth Kering’s updated China strategy reflects a broader shift from expansion-driven growth to a more selective and quality-focused approach. In a market estimated at 42 billion euros ($5 billion) by Bain, the emphasis is increasingly on brand strength and client relationships rather than network scale. The decision to reduce store count while increasing investment in marketing and client engagement suggests a focus on improving efficiency and strengthening brand equity over time. Partnerships such as the one with Icicle, along with initiatives like Kering CRAFT, indicate a move toward deeper engagement with China’s creative ecosystem. This approach aligns with evolving consumer expectations, whereby authenticity, craftsmanship, and cultural resonance are becoming more important factors in purchasing decisions. Execution remains key While the strategic direction is clearly defined, outcomes will depend on implementation. Adjustments to distribution, increased marketing investment, and enhanced clienteling capabilities provide a structured foundation. However, the effectiveness of these measures will ultimately depend on how consistently they are executed across brands and how well they translate into improved product appeal and customer engagement. Within the ReconKering framework, China is positioned as an important market for this next development phase. Its role is less about driving immediate growth and more about supporting a balanced and sustainable model for the group over time. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Kering plans China store cuts as it rebuilds Gucci’s appeal

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Kering plans China store cuts as it rebuilds Gucci’s appeal

How Bottega Veneta weaved China’s forever it bag