When the Paris Stock Exchange opened, Kering's share price plummeted and fell by over 12 percent.
Gvasalia, known in the industry under the name Demna, comes to Gucci from the Kering-owned fashion brand Balenciaga. He replaces Sabato De Sarno.
Kering's chairman and CEO François-Henri Pinault has, according to a statement, high hopes for the new chief designer.
"Demna's contribution to the industry, to Balenciaga and to the group's success has been enormous. His creative power is exactly what Gucci needs", says Pinault.
The appointment marks Kering's latest attempt to turn around the development of its main brand Gucci, which accounts for approximately half of the group's total revenue but has been hit by declining sales due to weaker demand from the important Chinese market.
Gucci's sales fell by 24 percent year-on-year in the fourth quarter to 1.92 billion euros, equivalent to approximately 21 billion kronor, reported Kering last month.
