Demna's Bold Appointment: Can Gucci's New Visionary Reignite Its Timeless Appeal?

Kering's decision to appoint Balenciaga designer Demna as Gucci's chief designer saw a $3 billion loss in stock value. Analysts view this as a risky move given Gucci's enduring reputation. The appointment splits opinion, sparking excitement and skepticism, as Demna's streetwear success meets Gucci's classic elegance.

Kering experienced a significant financial setback on Friday, with its market value plummeting by approximately $3 billion. The decline follows Kering's controversial decision to appoint in-house talent, Demna, as Gucci's chief designer, rather than opting for an established fashion heavyweight.

The appointment of the Balenciaga designer, known for his bold streetstyle, has ruffled feathers regarding the future of Gucci's classic elegance and has generated mixed reactions across the fashion industry. Analysts and investors remain wary of this bold decision amidst an ongoing sales decline for Gucci.

As Gucci attempts to redefine its artistic direction under Demna's leadership, the brand faces the challenge of appealing to its global audience while maintaining its renowned heritage. Industry observers will be keenly watching Gucci's September Milan fashion show for signs of the new designer's influence, as the label works to stabilize its market position.

(With inputs from agencies.)