【中国】Beyond Gucci: Which Kering Brands Showed Growth Momentum in 2025?

Against the backdrop of a deep adjustment in the global luxury industry in 2025, several brands under the Kering Group demonstrated counter-trend growth momentum through precise strategies and product innovation, providing a crucial turning point for the luxury giant facing continued weakness in its core brand, Gucci.

Despite Kering Group’s overall revenue declining by 13% in 2025, Bottega Veneta became the group’s only major brand to achieve consecutive positive growth. Comparable revenue grew by 3% in the third quarter, accelerating to a record high of 3% in the fourth quarter. Its success is attributed to three key strategies:

1. Product Innovation: The new Campana handbag, blending weaving craftsmanship with modern design, drove sales in the leather goods category. Ready-to-wear and footwear businesses achieved double-digit growth, breaking the traditional single impression of being just a “woven bag” brand.
2. Regional Deepening: Significant recovery in the Asia-Pacific market, with standout performance in South Korea and Japan returning to growth, offsetting the impact of weak consumption in Europe.
3. Channel Optimization: Direct retail network revenue grew by 5%, while inefficient wholesale channels were closed (wholesale revenue down 9%), strengthening the brand’s high-end positioning.

High-end jewelry brands became Kering’s fastest-growing business segment in 2025. Defying the group’s overall downturn, the jewelry department achieved double-digit growth, far outperforming fashion brands:

• Pomellato: Attracted young, high-net-worth clientele with its colored gemstone customization services and sustainability concept, singled out in the financial report for “outstanding performance.”
• Qeelin: Deepened innovation in Chinese cultural symbols (e.g., the “Wulu” gourd series), benefiting from the recovery of luxury consumption in China, with the Asia-Pacific market contributing the main growth.
• Boucheron: Achieved significant results from expansion in Japan and the Middle East, with the Quatre ring series driving sales of entry-level product lines.

The eyewear department achieved 7% comparable revenue growth for the full year, leading the group’s performance for three consecutive quarters. Its growth relies on two main engines:

1. Brand Portfolio Expansion: Core brands Maui Jim and Lindberg drove growth across all regions. The newly signed Valentino eyewear licensing agreement in September 2025 is expected to generate incremental growth in 2026.
2. Technological Barriers: Patented lightweight titanium frame technology solidified its position in the high-end professional eyewear market, increasing penetration in medical and sports scenarios.

Kering Group’s resource allocation towards growing brands reflects a clear strategic shift:

1. Divesting Non-Core Assets: Sold its beauty business to L’Oréal for €4 billion, alleviating €9.5 billion in debt pressure, and concentrating funds on high-margin businesses like leather goods and jewelry.
2. Store Closure and Restructuring: Closed 75 stores in 2025, with plans to close another 100 in 2026, phasing out inefficient stores (e.g., small jewelry stores in Asia-Pacific) and expanding Bottega Veneta flagship stores.
3. Management Reshuffle: Retained Bottega Veneta’s creative director Matthieu Blazy to ensure product consistency, while strengthening the regional localization of the jewelry division’s management team.

Despite the bright performance of some brands, the group still faces structural risks:

• Bottega Veneta Bearing the Burden Alone: Bottega Veneta accounts for only 9% of the group’s revenue (€1.3 billion in 2025), insufficient to offset the decline from Gucci’s €6 billion scale.
• Balenciaga Drag: Affected by controversial marketing backlash, the “Other Brands” department incurred a loss of €112 million due to Balenciaga’s weakness.
• Geopolitical Risks: Revenue in the Asia-Pacific region (excluding Japan) still fell by 19%, and the recovery in Chinese consumption has not yet translated across all price segments.

Conclusion: In 2025, Kering Group presented a “two extremes” landscape amidst turbulence. The steadiness of Bottega Veneta, the explosive growth of the jewelry line, and the resilience of the eyewear department prove its success in shaping product professionalism and scarcity. However, whether it can transform isolated breakthroughs into systematic growth still depends on the effectiveness of Gucci’s brand reinvention and the genuine recovery of consumer spending power in emerging markets.