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Shares were temporarily halted from trading once again as the Hong Kong-based company hopes to win over undecided shareholders.

In an exchange filing published on June 17, the company updated its buyout offer, giving shareholders an option between the existing HK $34 ($4.35) per share in cash, or 10 shares in the new private company for every share held. Trading was halted in the morning in anticipation of the announcement, and resumed later the same day.

L’Occitane originally made an initial privatisation bid in April, with billionaire chairman Reinold Geiger partnering with Blackstone and Goldman Sachs to fund the $1.8 billion takeover. Geiger owns more than 70 percent of the company’s shares.

The conglomerate owns its namesake L’Occitane en Provence and skin care line Elemis, as well as the hugely popular Gen-Z body and fragrance line Sol de Janeiro.

The share offer may help to move the needle for shareholders who believe the current cash offer undervalues the firm. In Hong Kong, where the firm has been listed since 2010, the consent of at least 90 percent of minority shareholders is required. The cash offer values the company at $6.4 billion.

With the success of brands such as Sol de Janiero, which is expected to clear $1 billion in retail sales this financial year, some shareholders may not be ready to give up their stakes just yet.

Marie-Claire Daveu, chief sustainability officer, shared how Kering is navigating the sustainability imperative globally and locally during a talk at the WWD Global Fashion Summit in Riyadh.

As the luxury industry navigates its sustainability transformation, Kering is leading by example —nurturing disruptive innovation and fostering cross-industry collaboration. At the WWD Global Fashion Summit in Riyadh, Kering’s chief of sustainability and head of international institutional affairs Marie-Claire Daveu shared the company’s strategy to transform the industry during a conversation with Miles Socha, WWD’s international editor.

“At Kering we say it’s one and the same, sustainability and luxury,” she said. “Last year we took a big commitment to reduce by 40 percent our greenhouse gas emission by 2035.”

The key driver to meeting that target, she said, is innovation. “Sustainability and innovation go hand in hand. It’s about changing business models and the way you are thinking. We need disruptive innovation at every stage, from raw materials to end of life. And in the luxury sector, we need those to be the highest standard of quality.”

One of the first issues she addressed in the talk was overproduction. “In Kering, we have a strong policy to enhance value over volume. In the future, artificial intelligence will be a great support to say how much quantity we have to produce. In the future we will have less unsold products.”

Developing raw materials at scale will be a key pillar to reaching the group’s target. She shared that in 2013 Kering created a material innovation lab. “We now have more than 8,000 samples and 400 suppliers around the world, including 250 start-ups.”

Gucci is currently using a new material called Demetra, which is an animal-free, plant-based material. “You see that in our sneakers and in iconic bags as well,” Daveu said. “At Balenciaga two years ago, they were able to use material made from mushroom. The summer 2024 collection uses new material, which is a derivative of microorganisms, plastic free and animal free.”

The conversation has shifted a lot since she took up the role in 2012. “Millennials and Gen Z are asking more and more questions. They are interested in knowing what brands are doing in sustainability. And now the EU will have new regulations, so brands will have to have more transparency.”

She also noted that sustainability is not a marketing approach to “sell more products,” but a pillar for future growth. “We are convinced if want to develop business in the future, we have to do this.”

At the summit, Daveu previewed plans to bring Kering’s start-up accelerator program, Kering Generations, to Saudi Arabia with the Saudi Fashion Commission. This initiative will provide mentorship and resources to local innovators developing sustainable solutions for the fashion ecosystem. “If we want to reach our targets we need innovations. And we think we can bring concrete support to the start-ups. If you are able to work with luxury brands, you can work with other companies.”

Burak Cakmak, chief executive officer of the Saudi Fashion Commission, joined Daveu on stage to discuss the potential for a program with Kering. “As a commission focused on building a sustainable fashion industry, we are exploring how we can do this together and support the industry’s future. Saudi Arabia could have a global materials center on science and engineering innovations. We are thinking about how the fashion ecosystem can apply to a new industry. We want to extend the reach of this sector to engineers and scientists.”

Daveu added that a cooperative approach is the way ahead for the industry. “All human activity has an impact. We have to change the entire industry, not just our own group. We really need a collective approach to have an impact.”

At WWD’s Global Fashion Summit in Riyadh, the longtime LVMH executive reflected on the transformation of the Kingdom and revealed plans for a partnership with IFM, the French fashion school.

Saudi Arabia is familiar territory for seasoned luxury executive Sidney Toledano. “I’m impressed by the Saudis,” said the former chief executive officer of LVMH Fashion Group and Dior and current adviser to chairman Bernard Arnault, in Riyadh.

He reflected on the market while speaking with Miles Socha, WWD’s international editor, at the Global Fashion Summit in the Kingdom. “I’ve been visiting for many, many years. We had a Dior in Riyadh 30 years ago, and it was very different times,” he said. “Back then women could not be working. But still you have a country that has always had very real experience in high fashion, more than most in the world.”

The current market dynamics, driven by the huge youth population as well as the government’s liberalization plan, is clear wherever one looks, he said. “One doesn’t need a database to understand the evolution of this country. Just walk into stores today and the transformation is clear.

“I never liked the word fashion ‘industry’. I like using fashion ‘community’. The Ministry of Culture here realizes the core of fashion, above business, is about culture.”

During his visit, Toledano toured the ministry-supported state of the art production facility being developed by the Saudi Fashion Commission. “Here they have state-of-the-art machines. I am so impressed. I could see designers from France coming to use these types of machines.

“I see the potential is huge and education is the key building blocks. In our business, creatively, the drawing is a start. Then creatives have to produce a prototype and set up production. Without this, you can never see the products on a shelf.”

In his role as chairman of the board of Institut Français de la Mode, the French fashion school, Toledano revealed plans to expand the agenda for fashion education in the region with a partnership with the Saudi Fashion Commission. “Yesterday we signed an agreement to define a roadmap for transfer of knowledge. We aim to develop bachelor’s and master’s degree programs here. The partnership would be a win-win for both of us.

“Now everyone realizes the clients are here, so everyone is opening stores,” Toledano continued. “The Saudization means everyone working is Saudi, from managers to sales people. The passion they have for luxury brands is great. But we have to talk about training for local boutiques, having the right sales people. This is where we can help with the IFM.

“We have seen Saudi clients shopping all around the world. One day I hope you will have as many local clients shopping here as they do abroad.”

Toledano shared his wisdom on how to successfully navigate a commercially successful business in a highly creative industry, having had successful working relationships with creative icons at LVMH ranging from John Galliano to Karl Lagerfeld.

In describing the CEO-designer relationship as a “dance,” Toledano emphasized that the designer’s creative vision should lead and set the direction. “You’re dealing with very smart and intuitive people. The vision of the designer is key. If I see a CEO telling me ‘this is my vision,’ I say, ‘but we are doing high fashion, we need someone disruptive to set a vision, that comes from creative.’”

He advised against CEOs trying to drive the creative process based solely on business analyses, as that could stifle the necessary disruption and innovation needed in high fashion. “The CEO can then organize the supply chain, the factory, the events to allow them to have impact with their vision.”

Toledano stressed that while numbers and data are important, true success lies in creating products that people desire. He cautioned against solely focusing on short-term metrics like gross margins, as they may overlook the long-term desirability of a brand or product. “I see the numbers every morning. It takes maybe 10 minutes. Numbers are important. Yes, if you have a bad P&L you have to change something.”

But the most important aspect to the growth of the luxury fashion industry is desirability, he said. “Who needs another bag, wallet or pair of shoes? Fashion, provided you have a middle class who can move upward, which means improving income and enjoying life, then luxury fashion will continue.

“We are training the next generation in luxury and the world is changing. There are new tools, new countries and markets. But it’s still always driven by the same thing: the desire. I’m very optimistic,” he said.

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