EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

culminating in 1999 with a controlling interest taken in the Gucci Group N.V—raised to 99% in
2004. Today, PPR operates as a multinational holding company directly operating retail shops
dedicated to its brands, which also are sold within boutiques in a limited selection of department
stores and specialty stores. In 2011, PPR operated 801 stores, up from 684 in 2010: 192 in
Western Europe, 142 in North America, 214 in Japan, and 253 in emerging countries. Its most
powerful luxury brand, Gucci (64% of revenues) is sold exclusively through 376 directly operated
Gucci stores, which command 74% of that brand’s total revenues of € 3.1 billion (+14.8%). The
balance of Gucci sales (leather goods, shoes, ready-to-wear apparel, watches, and jewelry) comes
from the small number of department and specialty stores so assigned by the company. PPR’s next
biggest luxury brand, Bottega Venet a (mostly leather goods) generated revenues of € 683 million
(+33.7%) sold primarily in 170 directly operated stores. Its other big luxury, fashion apparel
brand, Yves Saint Laurent with revenues of € 354 million (+31.6%) is sold in 83 directly operated
boutiques (56% of sales), and in multi-brand boutiques and department stores worldwide. Six
other PPR luxury brands, sold in 172 directly operated stores, generated € 738 million in revenues
(+30.6%). They are: Balenciago (ready to wear apparel), Sergio Rossi (footwear and accessories),
Boucheron (jewelry and watches), Alexander McQueen (women’s wear and accessories), and
Shella McCartney (lifestyle ready-to-wear apparel and accessories). In its Sports & Lifestyle
Division, most of the revenues are generated by the Puma brand in footwear and apparel (€ 3
billion +11.1%) which is sold like a brand without any dedicated company operate stores.
Additionally, PPR operates ‘fnac,’ a distributor of cultural, leisure and technological products such
as books, music, and personal computers in 154 directly operated stores (€ 4.2 billion -2.2%).
EB Identities: Gucci, Bottega Veneta, Balenciago, Boucheron, Sergio Rossi, Alexander McQueen,
Stella McCartney, Yves Saint Laurent, etc.
EB skus: N/A
Profile: PPR recorded an “excellent year,” its recurring operating income up by 16.9% to € 1.6
billion, as the company regroups into two major divisions: Luxury Goods and Sports & Lifestyle
Merchandise. Its 2020 goal: to reach € 24 billion in revenues, 60% in the former and 40% in the
latter division. In March 2011, PPR Home was established to set new standards and business
practices and sustainability goals in both those divisions. Late in 2010, the private company
decided to sell its Conforma operation, the second largest furniture retailer in France (186 stores)
plus other stores in total some eight other countries. Its outlets sell household goods (#1 in France)
and domestic appliances (#2 in France)—and feature private label merchandise as well. A $1.6
billion deal was negotiated with Steinhoff, South Africa’s largest furniture maker, and
consummated in March 2010. PPR, during 2011, acquired Volcom in July, an action sports brand
(€ 147 million in revenues) and increased its stake in the Sowind Group (Girard-Perregaux and
Jean Richard), a high-end watch movement producer. Girard-Perregaux traces its history back to
1791. The Gucci brand, celebrating its 90th anniversary in 2011, collaborated with two iconic
Italian brands, Riva and Fiat, in introducing two new exclusive limited edition design lines:
Aquariva by Gucci and Fiat 500 by Guicci. Also during the year, Gucci obtained ISO 14001
certification for all of its tanneries (Caravel and Blutonic) for production of leather goods, which
represent 40% of its total revenues (up from 36% in the previous year). The Gucci brand equity is
said to be unmatched in any product sector in Italy; its value was ranked by Interbrand, in its
recent Top 100 Brand Survey, as #39 in the world, valued at $ 8.8 billion (up by 5% from 2010).
In August 2011, the company launched “Gucci Style,” a pioneering interactive magazine that
gives “unprecedented access to the world of Gucci.” PPR slowly is becoming less reliant on the
weak European economy, as its two major divisions now report 76.8% of revenues outside that
zone (compared with 76.5% in 2010). The Bottega Veneta brand added its first women’s
fragrance line in June 2011 and, at year-end, launched Bottegaeneta.cn, a website wholly
dedicated to and for Chinese customers and targeted to the Chinese market. PPR’s Yves Saint