[Overseas Stocks Spotlight] "Kering, Luxury Preferred by MZ Generation"

[Asia Economy Reporter Eunmo Koo] It has been revealed that the brands owned by Kering (KER FP) are highly preferred by the MZ generation. Analysts suggest that continuous growth is possible based on online competitiveness.

Kering's sales in the first half of this year amounted to 5.378 billion euros, a 29.6% decrease compared to the same period last year, and operating profit was 952 million euros, down 57.7%, absorbing the impact of consumption contraction due to the outbreak and spread of COVID-19. Researcher So-yeon Jung from eBest Investment & Securities explained in a report on the 30th, "The sluggish operating profit is due to the fixed cost burden from the hit to offline stores and the cost burden from continued brand investments."

By brand, Gucci's sales decreased by 33.5% compared to the same period last year, while Yves Saint Laurent and Bottega Veneta also decreased by 30.0% and 8.4%, respectively, showing relatively strong performance. By region, Europe decreased by 29% compared to the same period last year, while North America, Japan, and Asia-Pacific decreased by 34%, 40%, and 25%, respectively.

However, online sales grew by 47% in the first half, partially offsetting the decline in offline sales, proving that brand demand remains strong despite COVID-19. At the same time, the proportion of online sales in total sales rose from 6% in the first half of last year to 13% in the first half of this year.

Kering's brands are expected to continue growing based on online competitiveness as brands preferred by the MZ generation. Researcher Jung stated, "The online share in the global luxury market will expand from 12% last year to 30% by 2025," adding, "This trend is due to the shift of the main luxury consumer base to the MZ generation." According to LUXE, Gucci ranks first among the top 14 popular online luxury brands, with Balenciaga ranking 6th and Yves Saint Laurent 8th. Additionally, Gucci was found to be the number one brand on the four major domestic luxury platforms (Trenbe, MustIt, Catch Fashion, Ballan).

This content was produced with the assistance of AI translation services.