Gucci-owner Kering has invested in handbag rental service Cocoon in the latest example of the French luxury giant’s confidence in circular fashion businesses.
London-based Cocoon offers its customers a variety of rental memberships starting from 49 pounds per month which they can pay for on a monthly or quarterly basis, giving them access to top luxury labels like Gucci, Loewe, Prada, Chanel and Balenciaga.
The company, which saw its number of memberships increase by over 200 percent since April 2020 despite the pandemic, has recently completed a new funding round with Kering as its latest investor, WWD reports.
Combined with investments from Depop founder Simon Beckerman and former Generation Investment partner Lilly Wollman, Cocoon has raised more than 2.5 million pounds to help its growth.
Cocoon, which was founded in November 2019, will use the new funds to scale its inventory, increase its workforce, and enhance its logistics and tech development.
Kering bets on circular fashion
Ceanne Fernandes-Wong, Cocoon’s chief executive officer and co-founder, told WWD it was “fantastic to have investment from such a powerful market leader,” citing Kering’s “incredible history, proven track record of innovation and deep luxury knowledge”.
And this isn’t the first circular business Kering has got behind. The group, like a growing number of luxury companies, is increasingly focusing on new, burgeoning business models like rental and resale.
The company in March snapped up a 5 percent stake in Paris-headquartered second-hand fashion platform Vestiaire Collective.
“This investment in Cocoon will enable us to monitor new consumption habits and digital practices,” said Kering’s chief client and digital officer Grégory Boutté. “We see the subscription model as a very interesting trend in fashion, and by extending the product lifecycle it resonates particularly well with Kering’s circularity ambition.”