Kering CRAFT cements China talent pipeline, accelerating brand localization
Bottom Line Impact
If executed with tight governance and brand guardianship, CRAFT can lift China cluster growth by 1-2 pts in 2026, improve gross margin mix via high sell-through limited editions, and build durable brand equity through culturally native IP, strengthening Kering’s competitive position versus peers.
Key Facts
5- MoU signed in Nov 2025 during the 8th China International Import Expo in Shanghai; initiative unveiled alongside the Kering Pavilion
- Program name: Kering CRAFT (Creative Residency for Artisanship, Fashion and Technology), positioned as an industry first
- Selection led by an international jury in collaboration with the Shanghai Fashion Designers Association, chaired by Lv Xiaolei
- Shanghai Fashion Week has undergone 10+ years of repositioning into a leading Asian trade and ordering platform
- Kering CEO Luca de Meo attended the launch in Shanghai, signaling C-suite prioritization of China market initiatives for 2026 planning
Time Horizons
Key Roles Affected
Executive Summary
Kering has signed an MoU with Shanghai Fashion Week to launch Kering CRAFT, an industry-first creative residency in China linking design, craftsmanship, and technology. This establishes a scalable pipeline for Chinese talent and brand collaborations, strengthening cultural relevance and positioning Kering for growth as Chinese consumers reshape global luxury demand.
Actionable Insights
Immediate Actions (Next 30-90 days)
Establish a cross-brand CRAFT steering committee with a ring-fenced 18-24 month budget and stage-gates for pilots and scale-up
Rationale: Central governance accelerates decision-making and protects ROI while aligning talent placements to brand-level needs
Role affected:CEO
Urgency level:immediate
Implement ROI scorecards with milestone triggers (application funnel, jury-to-cohort conversion, capsule sell-through, EMV)
Rationale: A performance framework targeting 1.5-2.5x EMV-to-spend and 60-70% sell-through on pilot capsules de-risks investment
Role affected:CFO
Urgency level:immediate
Short-term Actions (6-12 months)
Build a China-first content arc around CRAFT with 3 campaign beats tied to Shanghai Fashion Week, Lunar New Year, and 520
Rationale: Sequenced cultural moments can lift share of voice by 15-25% among China Gen Z and drive CRM opt-ins ahead of 2026 launches
Role affected:CMO
Urgency level:short-term
Map designers to product whitespace and plan 2-3 limited runs for China top-tier doors and .cn exclusive drops
Rationale: Tightly scoped capsules can add 1-2 pts to like-for-like growth in China clusters without diluting core assortments
Role affected:Chief Merchandising Officer
Urgency level:short-term
Risks & Opportunities
Primary Risks
- Brand dilution if capsules deviate from house codes or over-index on trend-led guochao aesthetics
- IP ownership and talent retention challenges between resident designers, Kering brands, and local partners
- Execution risk if local sampling and small-batch manufacturing miss quality or timeline targets
Primary Opportunities
- Accelerated relevance with Chinese Gen Z via culturally resonant storytelling and products
- Early option value on future Chinese breakout brands and designers, pre-empting competitive lock-ins
- Government and ecosystem goodwill from investing in local creative economy, easing market access and partnerships