Kering Invests in Handbag Subscription Service Cocoon
Kering is dipping its toe in the rental market.
London-based handbag subscription service Cocoon said Thursday the luxury giant has invested in its new funding round, the latest sign of luxury’s growing interest in alternative business models like rental and resale.
The sector, which thrives on strictly controlling the distribution, price and presentation of its products, was for many years leery of the rapid growth of online platforms offering items secondhand or on loan. But major players are increasingly experimenting in the space, seeing an opportunity to burnish their sustainability credentials with consumers and test the waters of new business models.
Kering has been particularly active on this front. In March, the luxury group acquired a five percent stake in Paris-based resale platform Vestiaire Collective for an undisclosed sum. The investment was part of a funding round that valued Vestiaire at more than $1 billion.
London-based Cocoon was founded in 2019 and has raised £2.5 million ($3.5 million) to date. Kering’s investment is part of the luxury group’s wider strategy to explore disruptive trends in the market by taking small stakes in emerging technologies and services. It participated in the latest funding round alongside existing backers, including Depop founder Simon Beckerman. The size of the investment was not disclosed.
While the pandemic was a blow to the early-stage business, since lockdowns lifted in the UK Cocoon has enjoyed triple-digit growth, said chief executive and co-founder Ceanne Fernandes-Wong.
