French luxury conglomerate Kering Group has kicked off a global agency review, Campaign US has learned.
The review, which is in its early stages, spans media planning and buying across all of Kering Group’s brands and markets, with a focus on innovation and digital. The account is currently with Publicis media shop Zenith, which is expected to defend.
According to COMvergence, Kering spent $139.5 million on media globally in 2020. But sources peg spending to be much higher, closer to €480 million ($566 million) globally.
The review is being led by R3, which was unavailable for comment.
Kering owns luxury brands including Gucci, Yves Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ulysse Nardin, Girard-Perregaux and Kering Eyewear.
Luxury goods took a hit during the pandemic, but have already begun to rebound. Sales of luxury goods shrank by roughly one fifth during the first half of 2020, but are now projecting a full return to 2019 levels in 2021.
Kering Group’s Q1 2021 revenues grew 21.4% on a reported basis and 25.8% on a comparable basis to €3.89 billion and ($4.59 billion), led by Asia Pacific and North America.
Gucci is the crown jewel in Kering’s portfolio, and saw revenues rise 26% year over year in Q1 on a comparable basis and 21.6% on a reported basis to €2.2 billion ($2.6 billion), also led by Asia Pacific and North America.
Kering Group did not reply to a request for comment. Zenith declined to comment.