PPR May Be Changing Its Name to 'Kering'
PPR SA, the French owner of Gucci and Puma, may be changing it's name to Kering to complete it's transition into a luxury and sport goods specialist reports BoF.
The new name, the fifth since 1988, intends to signify and change and the beginning of a new chapter for the company. The re-branding may be announced later this month sources confirmed.
BoF reported, "PPR, known formerly as Pinault-Printemps-Redoute and before that as Pinault-Printemps and Pinault SA, is disposing of retail assets it amassed in the past two decades to focus on luxury and sporting goods, which are more profitable and have better growth prospects. Chief Executive Officer Francois-Henri Pinault's goal is to lift PPR's sales to 24 billion euros ($31 billion) by 2020 from 9.7 billion euros in 2012."
Although the Louise Beveridge, the head of communications at PPR, has declined to comment on the name change to Kering, it seems the plan has already been set in motion. PPR has submitted an application with the U.S. Patent & Trademark's office in November to use the new name Kering on everything from clothing and leather goods to business management. The application is under review.
But is the change worth the hassle?
Corporate re-branding exercises can cost from tens of thousands of euros to millions of euros depending on their strategic objectives and intended audience, according to Charles Skinner, strategy director of brand and design consultant FutureBrand in London. That money could be spent focusing on the company rather than a change that seems purely cosmetic.
"To me, this is just nice-to-have or borderline useless," the analyst said. "I don't think this is going to provide any material benefit."
The case studies on major re-brandings that have made no difference to companies' revenue "could fill a library," said Roger Tredre, senior vice president of content at research and advisory firm Stylus.
"PPR should tread with caution," Tredre said.