On the day of the official announcement of a major joint-venture between PPR and YOOX Group, BoF’s Imran Amed speaks to PPR chief executive officer François-Henri Pinault for a global exclusive interview on how the new partnership fits into Mr Pinault’s digital vision for PPR.
PARIS, France – Tucked away in the back of his office at the global headquarters of PPR on the Avenue Hoche in Paris, chairman and CEO François-Henri Pinault has a one dollar bill, framed, like one might see in a corner shop or deli to commemorate the first hard dollar the business has earned.
On closer inspection, however, Pinault’s dollar bill has a different meaning altogether. George Washington’s nose is covered with a big red dot, making the first US President look like a clown. Pinault says the dollar bill is there to help him keep his feet on the ground and remember that there is more to life than work and making money.
Clearly, Pinault is not your typical CEO. But that doesn’t mean he can’t have a grand vision for PPR. Indeed, PPR is a conglomerate in transition. Pinault is currently in the process of divesting FNAC, a multi-channel retailer of consumer electronics, books, music, and games, and Redcats, a group of 17 apparel and homewares brands, sold online and via catalogue. Having recently acquired Volcom, a California-based surf-and-skate line, for $607.5 million, and Brioni, an Italian luxury menswear label, reportedly for more than $400 million, Pinault’s focus is now firmly on luxury and lifestyle brands.
Pinault has also made digital a strategic, CEO-level priority.
To support this focus, PPR has inked a new joint venture agreement with YOOX Group, a global fashion e-tailer and technology partner, “to accelerate the e-commerce development of several PPR luxury brands,” including Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga and Sergio Rossi – but not the group’s luxury anchor, Gucci – according to a joint statement released today. The JV, in which PPR has a 51 percent share, is a key plank in Pinault’s strategy which aims for the group’s luxury and lifestyle brands to hit €1 billion in online turnover by 2020.
A self-proclaimed technology geek, Mr Pinault has enthusiastically immersed himself in the digital world. To wit, among various products by PPR brands like YSL and Balenciaga, Pinault has ‘fancied’ the Pebble e-paper smartwatch on social curation site The Fancy, where he is active and has more than 260,000 followers. Last year, he met the site’s founder Joseph Einhorn and promptly made a $10 million investment in the start-up.
Indeed, perhaps more than any other senior executive I have met in the global fashion industry, Pinault seems to genuinely relish the business opportunities created by the digital revolution.
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