Kering CEO Luca de Meo is launching a new investment unit called “House of Dreams” to take long-term minority or majority stakes in emerging luxury and experiential brands—targeting areas such as experiential tech, Indian craftsmanship and culture-led Chinese luxury—to diversify revenue and reduce the group’s dependence on Gucci, which still represents roughly half of operating profit. The move, disclosed in an internal October memo and evidenced by a French trademark filing, envisions a 90-day pilot with a seed fund and dedicated team though investment size and launch timing remain unspecified; it echoes strategic plays by peers like LVMH and reflects limited scope for large acquisitions given Kering’s leverage. The plan is part of de Meo’s broader three-year turnaround ahead of a strategy presentation next spring and has produced mixed market signals—shares slipped 3.5% on the report but have rallied over 70% since his appointment was announced.
Kering's new CEO Luca de Meo has proposed a dedicated investment arm called 'House of Dreams' to take long-term minority or majority stakes in emerging luxury and experiential brands; the plan was outlined in an October memo seen by Reuters and Kering has registered the trademark in France. The unit is intended to run a 90-day pilot with a seed fund and dedicated team, but the memo and company comment state investment size, launch timing and operational details remain unspecified. De Meo frames the move as part of a three-year push to restore "top financial performance" and to reduce what he calls an over-dependency on Gucci, which currently contributes roughly half of Kering's operating profit (down from two-thirds in 2022). Kering's shares fell 3.5% on the report despite a over 70% rally since his June appointment, and the memo notes limited room for large acquisitions given Kering's leverage, signaling capital constraints for external growth. The strategy targets experiential tech, Indian craftsmanship and culture-led Chinese luxury, reflecting broader consumer shifts toward experiences and the rapid growth of niche players (e.g., Korean beauty, Chinese jewelers); the approach mirrors investment arms at LVMH and L'Oreal and echoes de Meo's prior 'Mobilize' restructuring at Renault. Key near-term risks are execution uncertainty, unspecified capital commitment, and the preliminary nature of the assumptions ahead of a formal strategy presentation next spring, while a Bain study cited in the article expects the global luxury market to rebound next year after a flat 2025.
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