Kering Group to bring in-house eyewear for all its brands
World’s third largest luxury group Kering has reached an agreement with Safilo Group SpA to set up a four-year strategic product partnership from 2017, the Paris-based company said today in a statement. As part of the agreement, Kering will pay Safilo 90 million euros ($118 million) in three installments through 2018 to terminate the eyewear maker’s Gucci license deal two years early.
Eyewear generates about 50 million euros of royalties for Kering via license agreements with five different partners, the French company said. Yet, the business is worth about 350 million euros in sales and the market for premium high-end frames is growing at a double-digit rate, Kering said.
Vedovotto, who was formerly CEO of Safilo, will head Kering’s new eyewear unit and be a co-shareholder of the division.