A strong signal: operations are becoming a strategic issue in the luxury sector
For a long time, luxury groups relegatedoperational organization to the shadows of their creative narratives, imagery , and desires. However, the current climate is changing the game: volatile demand, the rise of omnichannel retail, traceability requirements, raw material shortages, geopolitical complexity, and customer expectations for speed. In this context, excellence is no longer solely about the catwalk or shop window, but also about accurate forecasting, robust industrial planning, and reliable delivery.
Kering's decision to attract talent from the automotive and logistics sectors, driven by its CEO Luca de Meo , is part of this broader trend. Recruiting from companies like Renault , Forvia , or Deliveroo is not simply about "professionalizing" a back office; it's about importing methods and a culture of operational performance, in a market where luxury now seeks to reconcile scarcity, exceptional quality, and responsiveness.
The key word that stands out in research as well as behind the scenes is luxury supply chain. It covers a very concrete reality: how to circulate high-value products (leather, silk, cashmere, precious metals, stones) between workshops, manufacturers, tanneries, platforms, boutiques and customers, without losing the slightest degree of quality, authenticity and desirability.
Why are automobiles so fascinating to the top management of luxury brands?
The automotive industry is not simply a counterpoint to luxury; it is a world where industrialization has had to learn to serve precision, safety, compliance, and traceability. Over decades, the automotive sector has built quality standards (inspection, tolerances, audits), planning disciplines (S&OP, capacity management), and continuous improvement approaches (lean management) designed to produce flawlessly, in step with market demands, using global supply chains.
For a group like Kering, which brings together brands with very different identities such as Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen , and Pomellato, the challenge is to harmonize certain foundations without homogenizing the creative process. The automotive industry offers precisely this logic: standardizing the "underpinnings" (processes, data, governance) in order to unleash excellence on the "top" (style, materials, craftsmanship, customer experience).
Luca de Meo also embodies a certain vision of management : measure to decide, decide quickly, deploy on a large scale, then relentlessly correct. In the luxury sector, this translates into a shift in approach: operational performance is no longer limited to cost; it becomes a lever for service, quality, sustainability, and resilience.
Centers of Excellence: what exactly are we talking about?
A " Center of Excellence " generally refers to a cross-functional entity tasked with concentrating rare skills and disseminating them throughout the organization. The idea is not to replace the teams within each brand, but to provide them methods, tools, and standards on topics where collaboration creates value. In a multi-brand group, these centers can act as accelerators : they prevent each brand from independently reinventing solutions to identical problems.
In this case, operational logic takes center stage. It can encompass demand planning,process engineering,industrial excellence, quality, purchasing, logistics, distribution , and, increasingly, the information systems that orchestrate these flows. This is referred to as an " end-to-end " architecture, from raw materials to after-sales service, with one imperative: to make visible and manageable what was previously fragmented.
In the luxury sector, subtlety is key: excellence doesn't mean "going fast at all costs." It consists of mastering the right amount of time. Accelerating when the client demands it (restocking, e-commerce, repairs), slowing down when the product requires it (inspection, hand finishing, polishing, patinas, setting). Centers of Excellence serve precisely to arbitrate these rhythms, with clear rules and a keen understanding of the constraints.
Forvia: quality, industrialization and a zero-defect culture
Recruiting at Forvia, a major player in the automotive equipment sector, is particularly telling. The supplier operates under constant pressure: extremely high quality requirements, rigorous audits, regulatory compliance, complex supplier management, and the need to deliver on schedule. This "zero defects" culture is not a marketing slogan; it's a system, with tools, rituals, and a discipline of proof.
Applied to the luxury sector, this expertise can translate into very tangible gains. Quality in a brand isn't just about aesthetics; it encompasses the stitching, the color of the leather, the durability of the veneer, the sturdiness of a buckle, the regularity of the weave, the resistance of the varnish, and the longevity of the assembly. Returns, repairs, and non-conformities are costly in terms of both time and reputation. The promise of luxury is also a promise of peace of mind.
Methods from the automotive industry can help to better formalize critical points, to objectify controls without making workshops rigid, and to structure continuous improvement adapted to the crafts. Luxury does not want to become a factory; it seeks to achieve impeccable standards on a large scale, which is a different but equally demanding challenge.
Deliveroo: Flow logistics and the obsession with the last mile
At first glance, Deliveroo seems far removed from theworld of iconic handbags and fine jewelry. Yet, urban logistics and management offer a crucial lesson: the end customer judges the experience based on the promise kept. Announced time, adherence to the delivery window, product as described, clear communication, and handling of exceptions. Whether delivering meals or sending a piece of leather goods, expectations are immediate, and tolerance for uncertainty is decreasing.
Luxury now thrives on customers accustomed to transparent processes: order tracking, delivery options, seamless returns, and in-store and remote services. Brands must therefore master not only shipping, but also the orchestration of inventory across boutiques, warehouses, partners and e-commerce platforms.
Skills from "platform logistics" can help design agile systems capable of routing an item to where it will create the most value, without jeopardizing security, authenticity, and presentation.
This collaboration also highlights another key challenge: managing peak periods. Capsule collection launches, fashion shows, collaborations, the holiday season, the tourism rebound, and markets that slow down and then rebound. Expertisein highly volatile environments teaches us how to scale, plan, prioritize, and absorb shocks without sacrificing the brand's promise.
From sketch to boutique: the luxury value chain under pressure
In the luxury sector, the value chain is particularly sensitive because it is hybrid. It combines rapid, sometimes intuitive creation with manufacturing times that require expertise: tanneries, cutting, stitching, dyeing, assembly, quality control, packaging, and secure transport.
In addition to this, there is the diversity of categories: ready-to-wear, shoes, leather goods, eyewear, perfumes, jewelry. Each has its own industrial constraints, schedules and risks.
Centers of Excellence can act as "translators" between creation and operations. The goal is not to restrict an artistic director, but to make the decisions more transparent: which materials to secure, which workshops to reserve, which capabilities to protect, which tests to launch, which components to certify.
In ready-to-wear, for example, the availability of a fabric or the capacity of an embroidery workshop can change the equation for a collection. In jewelry, the supply of stones and the conformity of alloys demand extremely rigorous documentation.
This groundwork is often invisible, but it directly impacts the sales cycle, the consistency of product launches, and perceived quality. A high-performing luxury supply chain doesn't just deliver; it secures the brand story through evidence, consistency, and service.
Forecasting, planning, inventory: the science of "just the right amount of scarcity"
The luxury sector faces a classic tension: producing too little, frustrating customers by leaving sales unsold; producing too much, risking unsold inventory, discounts, and a dilution of exclusivity. The concept of "just the right amount of scarcity" aptly summarizes the desired balance: maintaining desirability while catering to key markets, channels, and loyal customers. It's a discipline akin to a science, where data helps inform decisions without claiming to predict everything.
Methods imported from the automotive and logistics sectors can strengthen practices like S&OP (Sales & Operations Planning), which aligns sales, marketing, production, and finance teams around a common scenario. In a multi-company group, the challenge also lies in comparing benchmarks, ensuring reliable definitions, and preventing each entity from using different terminology when discussing capacity, service, stockouts, or inventory coverage.
This management becomes all the more crucial as omnichannel blurs the lines. A store can serve a local customer, a tourist, an online order with pickup, or a transfer between stores. Planning is no longer just about volume; it's about promises of experience, with priorities that sometimes shift depending on the market, the season, and the brand image.
Traceability, compliance and sustainability: excellence as proof
Luxury goods are increasingly being questioned about their origin, manufacturing conditions, and environmental footprint. Traceability of leathers, origin of fibers, certification of gemstones, conformity of metals, management of chemicals, compliance with international regulations, and the fight against counterfeiting: all of this requires robust systems and continuous auditing capabilities. Here again, the automotive industry and its regulated supply chains offer invaluable expertise.
When a group structures its Centers of Excellence, it can better disseminate documentation, certification , and control. The objective is twofold: to protect the brand against reputational risks and to respond to a growing demand for transparency, particularly among younger generations. Sustainability cannot remain just rhetoric; it must be based on verifiable data, and therefore on a well-equipped luxury supply chain.
This logic of proof is not incompatible with the poetry of luxury. It becomes its modern foundation: guaranteeing that the product is beautiful, well-made, durable, and aligned with commitments. As regulations become stricter, operational excellence becomes a form of assurance.
Governance: how to pool resources without erasing the DNA of the companies
The risk when discussing "industrial" methods is the fear of standardization. However, a group like Kering is built on the uniqueness of each brand. The right question, therefore, is not "Should we standardize?" but "What should we standardize?" We can share planning tools, data repositories, quality processes, and purchasing frameworks, while still allowing complete freedom over style, cuts, signatures, finishes, and the in-store experience.
Centers of Excellence are effective when they act as internal partners, not as supervisory bodies. They bring skills that are difficult to recruit and retain within each entity, and they create a community of practice.
In sectors like automotive, this cross-functional governance is common: it makes it possible to meet quality and time objectives without preventing product teams from innovating.
