During a Senate hearing, François Henri Pinault, CEO of the Kering group, said that relocating production to absorb the impact of the Trump administration’s tariffs would be inappropriate. During the hearing, the CEO confirmed the group’s financial difficulties. The group hopes that the Gucci Cruise show scheduled for Thursday and the imminent appointment of a successor to Demna at Balenciaga will help it get back on track.
On Tuesday, May 13, two days before the Gucci cruise show, François-Henri Pinault was invited by the Senate inquiry committee on the use of public aid paid to large companies to respond to President Emmanuel Macron’s request to temporarily “suspend” all investment in the United States.
In a snub to his eternal rival LVMH, the CEO of the Kering group said that, in light of the Trump II administration’s aggressive customs policy, “it would not make sense to have Italian Gucci bags made in Texas.”
This is a thinly veiled reference to the inauguration by Louis Vuitton of the “Rochambaud” factory in Texas in October 2019, attended by the current US president.
And while Bernard Arnault contented himself a few days ago with insisting to Brussels on the need for an “amicable settlement” with the United States, François-Henri Pinault hammered home the point that “relocation, for me, is not an option.” This attitude speaks volumes about the need to preserve brand equity and consistency at all costs, even as the group’s finances are currently under strain.
Is luxury immune to relocation?
Faced with increasingly aggressive trade incentives from Donald Trump, urging French and European exporters to move their production facilities directly to the US, the Elysée Palace is taking a firm stance and asking companies to temporarily “suspend” their investments in the United States.
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Featured photo: Screenshot © Public Sénat
