Luxury brand Balenciaga has the fastest growth rates within the Kering Group, thanks to millennial shoppers.
Couture brand Balenciaga’s popularity with men and millennial shoppers has driven a sales spike, says CEO Cedric Charbit.
At a Financial Times luxury goods conference in Venice, Italy, he said:
“Millennials represent 60 percent of what we sell. Together with men, these are growing faster than any other (category)”.
Kering boss Francois-Henri Pinault has highlighted Balenciaga will reach 1 billion euros (£877 million) in annual sales of its fashion, shoes and handbags in the medium-term.
While it is not able to match Gucci’s skyrocketing sales (€6.2 billion revenue in 2017), Kering said Balenciaga was its fastest-growing brand in the past two quarters, reports Reuters.
Balenciaga’s strong focus on streetwear and logos has made it covetable for young millennials.
“There’s not a dinner I go to where a father or someone (doesn’t) say ‘stop releasing these shoes, it’s out of control, we spend too much money at Balenciaga’, which I’m very happy with,” Charbit said.
Reuters reports Kering finance director Jean-Marc Duplaix recently revealed Balenciaga was extending its men’s business to keep up with demand, however no further details are known at this time.
Millennials are a key target market for luxury brands. They are tech savvy and will expect a seamless glocalized shopping experience, which they are already getting from their preferred brands. Luxury brands hoping to increase conversion need to consider their branding and how to present products to best appeal to a demographic that does not want to conform to traditional expectations.