From Timber to Luxury: The Story of François-Henri Pinault and Kering

1 minutes reading time

Published 7 May 2024

Author: Kasper Karlsson

Reviewed by: Peter Westberg

François-Henri Pinault is perhaps not the luxury leader you hear the most about, yet he is the Chairman and CEO of Kering, the fifth-largest public luxury company in the world. Since succeeding his father in 2003, Pinault has not only advanced the company’s luxury profile but has also pioneered substantial sustainability initiatives across its operations. Under his leadership, Kering has transformed from PPR, a conglomerate with interests in various retail sectors, into an exclusively luxury-focused entity, shedding its former retail and lifestyle divisions to concentrate on high-end brands such as Gucci and Yves Saint Laurent. Let’s try getting to know him a bit closer.

Key Insights

Leadership transition: François-Henri Pinault took over leadership from his father, François Pinault, in 2003, transitioning from the diverse business conglomerate PPR to focusing solely on luxury through Kering.
Strategic shifts: Under François-Henri's direction, Kering divested from retail and lifestyle sectors to concentrate on luxury brands.
Cultural and artistic engagement: Beyond business, the Pinault family, through Groupe Artémis, invests in cultural endeavors, owning Christie’s auction house and supporting the arts, highlighted by the creation of the contemporary art museum at the Bourse de Commerce in Paris.
Personal background: François-Henri Pinault's early life and education were influenced by his family's entrepreneurial background. His education at HEC Paris and early career decisions shaped his approach to business leadership strategy.

Get to Know François-Henri Pinault Through his Father – François Pinault

As legendary filmmaker Francis Ford Coppola once stated in an interview: “You can always understand the son by the story of his father. The story of the father is embedded in the son.” Consequently, let’s begin by trying to understand François-Henri Pinault, through the story of his father, François Pinault.

François Pinault, born on August 21, 1936, in Champs Géraux, France, is a renowned French billionaire businessman and art collector. He began his career in the timber industry, founding Société Pinault in 1963, a company that dealt in timber and building materials. This business later evolved into the conglomerate known as Pinault-Printemps-Redoute (PPR), and ultimately transformed into the luxury group Kering, known today for owning high-end brands such as Gucci, Balenciaga, Bottega Veneta, and Alexander McQueen.

François Pinault’s move into the luxury goods market was marked by strategic acquisitions, beginning with the purchase of Gucci through a series of transactions beginning in 1999. This pivotal move set the stage for the expansion into luxury brands, which was not without its challenges, including a notable legal battle with fellow billionaire Bernard Arnault (CEO of LVMH) over the control of Gucci. Despite these challenges, Pinault’s shrewd business strategies helped solidify his company’s place in the luxury market.

Further reading: Kering's Rise to Power: The Epic Battle for Gucci

Groupe Artémis is an important part of the Pinault family. It serves as the family’s investment vehicle and was founded by François Pinault in 1992. It includes a diverse portfolio, spanning various sectors such as art, wine, technology, the luxury leg, and more. Its notable holdings include Christie’s, a leading auction house, the Stade Rennais Football Club, and of course Kering.

Beyond his business achievements, Pinault is also a major art collector, with a personal collection that includes more than 10,000 works from nearly 400 artists. His commitment to the arts is evident in his establishments like the contemporary art museum at the Punta della Dogana and the renovation of the Bourse de Commerce in Paris to display the Pinault Collection.

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Moving on to François-Henri Pinault’s Early Life

François-Henri Pinault, born on May 28, 1962, in Rennes, France, is the son of François Pinault and Louise Gautier. Given his family’s established business background, he grew up in a privileged environment. Other than most likely being schooled by his father at the dinner table, Pinault’s education included an academic journey at HEC Paris, one of France’s leading business schools, where he graduated in 1985. His time at HEC was complemented by an internship as a database software developer at Hewlett-Packard in Paris, and he later completed his military service in the French Consulate in Los Angeles, focusing on new technology sectors and fashion.

After his education, Pinault set off on his career in the family business. He joined PPR, the company founded by his father, in 1987. Over the years, he climbed the corporate ladder, eventually becoming head of the buying department, and later the CEO of French retail chain Fnac in 1997. Under his leadership, PPR transitioned into becoming Kering, today one of the largest players in the luxury goods market.

His personal life is equally vibrant, marked by his marriage to actress Salma Hayek in 2009 and his role as a father to their daughter, Valentina, along with three other children from previous relationships. Pinault’s interests extend beyond business and philanthropy; he is, like his father, a noted art collector and sports enthusiast, particularly soccer.

PPR Becoming Kering and François-Henri Pinault its CEO

Pinault’s involvement in PPR and its transformation into Kering marks a significant shift in the company’s focus and strategic direction. Joining the company in 1987 and rising to prominent leadership roles, Pinault was pivotal in steering the group away from retail and towards becoming a powerhouse in the luxury fashion sector. In a Harvard Business Review article from 2014, Pinault shares the story of when he succeeded his father as the chairman and CEO of the family’s holding company Artemis:

“In 2003 my father asked me to dinner at his favorite restaurant in Paris, where we both live. He was the chairman of Artemis—the family holding company that controls PPR, the conglomerate he’d founded in 1963, and a variety of other businesses, including Christie’s, the auction house. I had graduated from HEC business school in 1985, had been working at the company since 1987, and had turned 40 a few months earlier. Over dinner my father told me he wanted to step down and make me chairman and CEO of Artemis. I was surprised by the timing and told him so. “What are you going to do if you stop working?” I asked him. But my father was 67 and had recently seen a friend die unexpectedly without having prepared for succession at his family-run business, so he felt it was time.

The dinner took place on a Thursday. When I walked into our headquarters the following Monday, I found entirely new furniture in my office—and my father sitting at the desk. “You don’t work here anymore—you work there,” he said, pointing to the corner office that had been his. He’d had everything moved over the weekend.”

Two years later he also became the Chairman and CEO of PPR. Under his leadership, PPR began divesting its retail assets like Printemps and La Redoute in the early 2000s, while acquiring luxury brands such as Gucci, Yves Saint Laurent, and Balenciaga. This strategic shift was part of Pinault’s vision to make the company more international, growth-oriented, and profitable, which was realized when PPR was rebranded as Kering in 2013. The new name, Kering, a nod to the Breton word for "home" (ker), signifies care and is in line with the company’s ethos of nurturing its brands and sustainability focus. Here’s Pinault again in the HBR article, giving us insight into how he thought about the group’s focus:

“When I became the CEO of PPR and started reviewing our strategy, I focused on whether our conglomerate made sense in a global economy. That’s been the big change over the past 15 years. Until the late 1990s expanding overseas was complicated, and companies like ours preferred to diversify across product lines not far from their home markets. U.S. companies have access to a huge domestic market, but France has a relatively small one. PPR had ended up as a conglomerate not because of some grand design but because my father kept acquiring businesses in order to fuel its growth. By the time I became CEO, the company was doing very well but reaching the limits of this model. That’s why I decided to focus on building a group of global brands in luxury and sport.”

In Conclusion

François-Henri Pinault’s journey from a background rooted in a family-run timber business to the helm of one of the most prestigious luxury groups is interesting studying whether you’re into luxury or not. Under his stewardship, Kering has not only redefined its identity by focusing exclusively on high-end luxury brands but has also set benchmarks in the industry for cultural patronage and strategic growth. His story showcases the impact of heritage, the transformative power of focused leadership, and the profound influence of cultural and ethical commitment in shaping the future of global luxury markets.