MA Diary - PPR

Continuing the series of most powerful luxury groups in the world, I will make a short presentation on PPR.

Established in 1963 by François Pinault in the timber and building material businesses, the PPR group positioned itself in the middle of the 1990s in the Retail sector, in which it soon became a major player.

The purchase of a controlling stake in Gucci Group in 1999 and the establishment of a multibrand Luxury Goods group marked a new stage in the development of the Group.

In 2007, the group seized a new growth opportunity with the purchase of a controlling stake in Puma, a world leader and reference in Sportlifestyle. PPR thereby continued to develop its activities in the most buoyant markets, through strong and highly reputed brands.

Today, PPR has entered a further phase of its expansion and intends to become a leading group of global brands, representing a universe of “personal goods” that encompasses apparel, footwear and accessories. These powerful brands are to be positioned both in the Luxury and Consumer Retail markets.

Thus, by the side of the Luxury branch – one of the most prestigious and top performing global leaders -, PPR Group is gradually reorienting its Retail branch to focus on sports lifestyle brands with a more international profile; brands conveying values that endow them with genuine legitimacy above and beyond their mere stylistic component, and all sharing a common concern for ultimate quality combined with an ongoing quest for innovation.

PPR is therefore spreading out into more international activities, better distributed throughout the world in order to prevent any dependence on any specific economic area. Backed by a more coherent structure, the Group will then have the ability to benefit from new synergies derived from complementary consumer universes and from pooled resources, to be leveraged in the service of all Group companies.

Last but not least, the business expansion takes place in full respect for the communities residing close to the companies’ theaters of operation. All PPR branches and companies share a similar concern to ensure optimum quality and reliability for all business processes, while fully complying with the commitments set forth in the PPR Code of business practices.

The Group’s commitment in Corporate and Social Responsibility is a prerequisite in terms of ethics and corporate responsibility in view of the common challenges facing the entire world. But it is also a major business challenge: indeed, sustainable development constitutes a genuine business opportunity, along with a source of innovation and cost cutting.

PPR ’s strong entrepreneurial culture has embraced the principle of decentralisation for a long time. The Group’s structure creates a balance between five different operating branches, Gucci Group, Puma, La Fnac, Conforama and Redcats, each of which enjoys extensive autonomy within a set framework, and a light-touch holding company responsible for the Group’s strategic direction.
This organisational model empowers all employees with a sense of responsibility and initiative, and optimises value creation for PPR. Everyone is fully engaged in the growth of their respective companies, and feels responsible and accountable for their performance.
On the ground, the branches have the executive power they need to run their businesses. Being close to their markets and customers, they are charged with developing strategy for the brands and companies and setting the direction for each business as well as taking all operational decisions. They are backed as needed by nimble, flexible and interconnected management structures. Such freedom of action for the operating teams helps keep employees committed and loyal to the Group. It also draws out the best talent.
The holding company defines PPR ’s high-level strategy and ensures the interests of the Group’s various stakeholders remain aligned. It manages performance in all Group entities through streamlined systems for orientation, regulation and control. It also manages certain areas that come under its exclusive remit for the Group as a whole, including mergers and acquisitions, treasury and finance, shareholder relations and Group corporate governance. In addition, it fulfils leadership, management, support and coordination roles in other areas within the Group.

PPR looks to pool resources and facilities wherever this will add value for the branches and improve performance. It applies cross-functional policies to optimise specific key processes for the Group as a whole, notably talent management.

Sharing of knowledge and expertise throughout the Group as well as dissemination of best practice is systematically encouraged. This helps drive creativity, innovation and excellence in processes, optimising the use of resources and to cut costs.
The PPR corporate culture relies in particular on values of consultation, freedom of speech and conviviality that federate and cement the Group, serving as a genuine catalyst of solidarity. This mindset is reflected among other in simple, fluid and authentic systems of exchange and communication.
This unique management style lies at the heart of the Group’s functioning and performance.