A heavy industry specialist in a sector that is traditionally dominated by creative types: ten years ago, no one would have believed it; today, however, this appointment is part of a very real evolution in the luxury sector.
Judge for yourself from the recent wave of new figures taking the helm: Ilaria Resta, CEO of Audemars Piguet, learned her trade at P&G and Firmenich; Leena Nair, appointed head of Chanel, is a former Unilever executive; while at Ferrari, no one has expressed any regrets about the appointment of Benedetto Vigna, a former semiconductor industry executive.
Kering will undoubtedly make good use of Luca De Meo's three key strengths. Starting with his talent for complex restructuring, which has been proven time and again at all the manufacturers that he has rescued from ruin.
Gucci's sales – which still account for two-thirds of Kering's consolidated operating profit – are expected to be 30% lower this year than in 2018, while the number of stores at the end of last year was 13% higher than at the time. So there will be some streamlining to do.
Then there is his talent as a marketer, which has also been proven after the turnaround or successful launch of several automotive brands. Milanese Luca De Meo is a man who looks good—as anyone who has met him will confirm—and who knows how to read the market and what appeals to consumers.
In other words, he is exactly what the owner of Gucci needed, as the luxury positioning of its flagship brand has long been the subject of sarcasm, particularly in Europe.
Finally, as a well-connected and skilled negotiator, De Meo's expertise in the automotive sector – always in crisis situations – has taught him how to manage his relationships with financial partners - particularly bankers and bond investors.
This is expertise that Kering will also need to leverage, as its solvency ratios are significantly less impressive than those of other big names in the luxury sector.
