Kering’s $1.85 billion electric game: Position Valentino Challenges Dior & Celine

Kering SA made a decisive move in the high-risk chess game of global luxury goods. Valentino’s full acquisition for $1.85 billion is a direct strategic offensive, building stronger challengers for LVMH’s main portfolio. By putting Valentino under its control, Kering gained a key pillar to diversify beyond its flagship Gucci and pose a more reliable threat to LVMH’s cash-generating stars like Dior and Celine.

This deal is more than just adding branding. It’s about getting a growth platform that can be boosted through Kering’s resources. The group’s strategy is clear: pair Valentino’s legacy with its own expertise in supply chain, marketing and retail distribution to create a stronger competitor.

Source: reuters.com
The first and most critical step in the program is the installation of creative director Alessandro Michele, who can define a commercially viable aesthetic to compete for the same high net worth clients he has done for years at Gucci.