On Tuesday, Balenciaga’s CEO Cedric Charbit announced that the brand is Kering’s fastest growing brand, beating out Gucci helmed by Alessandro Michele. Back in January, the French fashion conglomerate announced its move to focus on luxury fashion. According to Reuters, the significant revenue growth has been driven by millennial shoppers and male shoppers.
In a statement at a recent Financial Times conference in Venice, Italy, Charbit pointed out that millennials represent 60-percent of revenue for the luxury fashion house. “Millennials represent 60 percent of what we sell,” said Charbit. “Together with men, these are growing faster than any other (category).” He also noted that across categories, which include handbags and clothing, the brand has grown in profit by more than 100-percent.
Millennials, the generation born between the early 1980s and mid-1990s, are fuelling growth across the luxury goods industry, accounting for about a third of global sales, though brands are fighting for attention from these shoppers.
Undoubtedly, the brand’s creative director Demna Gvasalia has shifted the designs towards producing millennial-friendly pieces, like Triple-S sneakers and colourful logo handbags.
Reuters also reports that the fashion house is on-target to reach £1 billion EUR (approx. $1.18 billion USD) in annual sales of its fashion, shoes and handbags by midterm.