A decentralised structure where delegation is key
PPR ’s strong entrepreneurial culture embraces the principle of decentralisation. Its structure creates a balance between the different operating branches, each of which enjoys extensive autonomy within a set framework, and a light-touch holding company responsible for the Group’s strategic direction.
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. 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.
This unique management style lies at the heart of the Group’s functioning and performance.
A group capable of transforming itself to enhance future growth and profitability
PPR is constantly seeking new sources of growth and profitability.
This innovative development strategy hinges on exploiting the potential for growth lying latent within the Group’s different assets. PPR has put together a remarkable portfolio of businesses, always picking leading brands and companies with differentiating qualities that enjoy exceptional appeal. Their commercial success stems in large part from a capacity to anticipate market expectations. All brands and companies enjoy strong potential for organic growth by leveraging their assets, expanding globally or moving into new areas (products, segments, distribution channels, etc.).
PPR is committed to continuous progress to achieve lasting improvements in the use of capital and boost profitability over the long term. The Group companies are bound into a strong culture of cost-control and seek constantly to refine their business models to enhance operating profitability. They are equally concentrated on maximising returns on capital employed and keeping working capital to the minimum required in each business. Finally, through attention to detail and meticulous execution, they ensure the efficiency of the Group’s processes and organisations. PPR stands ready to fine-tune its portfolio of strategic assets wherever this will further improve its growth outlook and profitability. Group entities that no longer offer the required prospects for revenue or profit growth may be sold on, with due
consideration for their history and their employees.
Mergers and acquisitions can also be an effective way to step up the pace of transformation in the Group. PPR has always been able to seize the moment, as in 1999 when it bought Gucci Group or more recently with Puma, to acquire a major asset that shifts the Group’s centre of gravity, either by its size or its market positioning. PPR is also adept at mid-sized tactical investments that add new capabilities to the Group or complement existing brand or product portfolios. Criteria applied to potential acquisitions are demanding. The Group only selects targets that match its strategy and that offer potential to develop and improve financial performance, which PPR can identify and exploit. Also, the Group only considers assets that fit with its policies for consolidated net income growth, financial solidity and return on investment.
A group that leverages brands and expertise to build a project for the future
PPR has built up unrivalled expertise in retailing, with a multifarious range of formats, strongly differentiated models and highly innovative retail channels. Redcats, Fnac, and Conforama are all in their way trail-blazers in their respective fields and have all developed into essential players in their market. Notable achievements include the constant extension and renewal of product and
service ranges, the roll-out of e-commerce, innovative ways of interacting with customers and the expansion of their networks.
In Gucci Group and Puma, PPR has two very different but coherent portfolios of prestigious brands. Both are global and complementary. Gucci Group is active in Luxury Goods markets. Its brands are a roll call of the values and traditions of excellence. They evoke ultimate quality and exclusivity through an offer of prestigious goods. Puma is targeted at a broader consumer market and customers who seek to define themselves by shared and identifiable lifestyles. The brand draws its credibility from its identity, authenticity, technical quality and style.
Expertise in retailing and brand management gives PPR a special know-how when it comes to selling: the art of presenting products, selecting the most appropriate channel to promote them, exploiting the best positioning or best medium to market them or alternatively applying the most efficient relational marketing strategy to attract customers and instill brand loyalty. It is a question of creating the conditions that will not only bring a customer to the point of making a purchase but also transform it into a pleasant and valued experience. There is also supply chain management, an area where synergies are particularly well exploited among the Group’s different entities. All PPR branches are committed to the highest possible standards of quality and reliability throughout the process while also complying with the Group’s Corporate Social Responsibility Charter.
By bringing together these exceptional skills, PPR has gradually moved the centre of gravity of its core assets into a group of universal and powerful brands focused around personal goods. These include both established brands and rising stars, but all are distinguished by excellent long-term and renewed positioning, whether in the Luxury Goods or Consumer sectors. Their credibility is based on exceptional brand identity, the offer of authentic style and on rare and demanding expertise. All look to provide the best possible quality and continuous innovation.