Kering has taken an undisclosed stake in Cocoon, a London-based luxury handbag rental service.
Cocoon offers a variety of membership plans to its customers, enabling them to choose from more than 35 luxury brands, ranging from Kering-owned Gucci and Bottega Veneta to Chanel and Dior.
Kering’s investment in Cocoon is part of a larger $3.5 million investment round, which saw participation from Depop’s founder Simon Beckerman and Lilly Wollman, a former partner at Generation Investment, The Fashion Law reported.
The global luxury conglomerate’s move to invest in Cocoon comes at a time when luxury brands are increasingly eyeing the $36 billion fashion resale market, which is expected to be valued at $77 billion by 2025. It also highlights Kering’s effort to invest in younger and more innovative players in the fashion industry.
“As part of this strategy, Kering, through its ventures arm, takes minority stakes in services and technologies for the next generation of luxury consumers,” Kering’s chief client and digital officer Gregory Boutte said today.
Boutte added that Kering’s investment in the rental service would help Kering monitor new consumption habits and digital practices, especially as sustainability and circularity continue to play a key role in reshaping the dynamics in the global fashion industry.
“We are like-minded in our vision for a sustainable fashion future and our respect for the luxury codes,” said Ceanne Fernandes-Wong, CEO and co-founder of Cocoon. “The market is calling out for innovative sustainable solutions and can see that our subscription-based model allows for consistent revenue generation through a challenging time.”