Balenciaga is now the fastest-growing label in the Kering Group, the brand’s CEO has announced. The 101-year-old label – which is currently headed up by Georgian designer Demna Gvasalia – has both men and millennials to thank for the huge boost in sales.
Although the brand’s total earnings are still significantly smaller than the likes of Gucci (which also sits under the Kering umbrella and raked in around €6.2 million in revenue last year), sales of handbags and clothing have risen substantially, with the CEO of Kering, François-Henri Pinault estimating that Balenciaga will hit the €1 billion in sales in the medium term. Although the revenue will be smaller, Gucci’s growth for the last two quarters sits at around only 49 per cent, while Balenciaga has seen a growth of around 100 per cent in some areas.
“Millennials represent 60 per cent of what we sell,” Balenciaga CEO Cedric Charbit said at a Financial Times luxury goods conference in Italy last week (via Reuters). “Together with men, these are growing faster than any other category.”
Although the label was once known for its glamorous and striking couture gowns under its founder Christobel Balenciaga, Gvasalia has taken the label in a completely different direction, with an emphasis on luxury streetwear and playful, tongue-in-cheek collections. This aesthetic has clearly appealed hugely to both millennials and men, who have caused a surge in sales.
Balenciaga autumn/winter 2018
From: ELLE UK