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Economic Moat

Kering has no economic moat

Shoppers can choose another luxury label for their next purchase without giving up the usefulness of what they already own. Kering’s prestigious brands attract buyers, but their appeal must be continually renewed rather than providing dependable protection from competing labels.

Why Kering has no moat

Customers can switch freely

Prestige needs constant renewal

Scale does not exclude rivals

The explanation behind each reason