PPR, the French retail giant that owns Gucci, Saint Laurent, and Puma, held a business briefing ahead of its name change to Kering on the 18th. The company's Managing Director, Jean-François Palud, visited Japan and spoke about the current situation and outlook for the Japanese market. The company's sales in Japan in 2012 increased 7.4% from the previous year to 1.1584 billion euros. The luxury division increased 9% from 2011, giving Japan the third-largest sales market share in the world at 12%. The luxury division's core brands, Gucci, Bottega Veneta, and Saint Laurent, performed well in 2012, increasing 5.3%, 8.9%, and 46.7%, respectively. Saint Laurent saw strong growth before the resignation of Hedi Slimane. Japan is Gucci's number one global market for sales. Gucci shops are being gradually renovated with a global concept store design by Frida Giannini. Palud said, "Japan is like a test market. If something works in Japan, it will be appreciated anywhere in the world. The luxury sector was in a slump until last year, but has recently shown signs of recovery, with young people purchasing more. We're also seeing a change in consumption patterns. Previously, leather goods were popular, but recently, higher-priced items like handbags, shoes, and apparel collections have started to sell. This change may have been driven in part by the brands themselves. Sizing tailored to Japanese consumers is also a factor." While the yen is currently weaker than in 2012, and Japanese people are spending less overseas, Palud believes this can be offset by increased domestic demand. Palud also aims to open its first Japanese store this year for the Chinese jewelry brand QEELIN, which it acquired last December. Palud also owns approximately 20 other brands, including Alexander McQueen, Balenciaga, Brioni, Stella McCartney, and Volcom. The company currently operates 237 directly managed stores in Japan.