Discussion: The State of Kering

[LadyJunon]

Balenciaga is moving back into their original headquarters at 10 and 12 Avenue Georges V:

EXCLUSIVE: Balenciaga Returns to Original Headquarters With Expanded Presence
The brand is doubling the size of its couture salons at 10 Avenue George V in Paris, and adding new offices for creative director Demna and his teams.

By JOELLE DIDERICH

JULY 20, 2023, 1:00AM

PARIS — Balenciaga is returning to its original headquarters. The brand is doubling the size of its couture salons at 10 Avenue George V in Paris, adding new offices and commemorating the occasion with a plaque on the façade of the building explaining its historic significance.

Guests at the house’s fall 2023 haute couture show on July 5 got an early peek at the expanded premises, which grew from the original salons to neighboring number 12.

The spaces added to the combined building’s six levels will house creative director Demna and his teams, in addition to the Balenciaga couture and ready-to-wear ateliers, the house said in a statement shared exclusively with WWD.

The spaces will feature high-tech updates and modern touches such as dark, smoked glass partitions, and should be ready by the end of this year or in early 2024.

Balenciaga took advantage of the renovation to shoot its winter 2023 advertising campaign, which shows actress Isabelle Huppert and models posing against drywall and building materials. Construction workers can be glimpsed in the accompanying video.

Founder Cristóbal Balenciaga established his house at 10 Avenue George V in 1937 and lived, worked and held collection presentations there until his retirement in 1968. He even named his first fragrance, Le Dix, after the place.

“This address was extremely important to him and is iconic to us,” Cédric Charbit, chief executive officer of Balenciaga, said in a statement.

Balenciaga revived the address in 2021 when Demna presented his first couture collection in the newly restored salons. Last year it opened a street-level Balenciaga Couture Store downstairs offering limited-edition clothes, shoes, accessories and high-tech objects.

“In July 2023, Balenciaga expanded the couture salon, doubling it in size to put couture at scale as couture and creativity are our fundamentals,” said Charbit.

“The relocation of our headquarters with couture and creative functions to our original address is a homecoming reuniting the past and present that is not only a physical expansion but also an expansion of the house’s legacy and ateliers. I’m proud of this important milestone and historical moment for Balenciaga,” the executive added.

Charbit and corporate functions will be based in separate renovated headquarters at 16-18 Rue Vaneau. In the meantime, some members of the Balenciaga team continue to work from their prior headquarters, shared with parent company Kering, in the former Laennec hospital dating back to the 17th century.

Balenciaga is gradually resuming a normal calendar of campaigns and announcements following the release last fall of two separate campaigns that sparked outrage on social media, prompting apologies from Charbit and Demna. Huppert, who appeared in one of the controversial ads, has not commented on the furor and walked in the recent couture show.

The winter 2023 images were shot by Brooklyn-based photographer Tyler Mitchell, best known for his photo of Beyoncé for the cover of U.S. Vogue. Alongside Huppert and female model Vittoria Ceretti, the ads feature male models Arthur del Beato, Nyawurh Chuol, Yura Nakano and Khadim Sock.

The collection includes deconstructed tailoring, with signature pieces such as tracksuits, denim and leather jackets, suits and jeans reinvented in hybrid versions. They are complemented by dressier items including pleated blouses with exaggerated shoulders, lace evening gowns and faux-mink coats.

Among the accessories in the fall lineup are the Monaco bag line, the Anatomic and Biker boot styles, the 3XL sock shoe, the Flex pump and Fennec and Speed eyewear.

Kering, which does not break out revenues for the brand, reported that like-for-like sales at its “other houses” division — which includes Balenciaga alongside Alexander McQueen, Brioni and several jewelry brands — were down 9 percent in the first quarter, following a 4 percent drop in the fourth quarter, when sales were hit by the advertising scandal.

While Balenciaga powered ahead in Asia-Pacific, it remained impacted in the U.S., U.K. and Middle East during the first three months of the year.

“In continental Europe, we start to see a normalization and we are positive again,” said Kering chief financial officer Jean-Marc Duplaix, anticipating that the brand would probably not regain its footing completely until the second half. Kering is due to publish its second-quarter results on July 27.

Source: WWD

 

[Deleted member 7575]

john for balenciaga would only work if they're going for a complete image rehaul. i'd rather have him at mqueen, to be honest. the house codes align quite well with his design sensibilities. although, i don't think he'd ever do it considering lee was a contemporary of his.

So was Margiela.

 

[gallianostan]

So was Margiela.

martin margiela and john galliano were never 'competing' in the same way that john and lee were. margiela and galliano may have been contemporaries a priori but they were operating in entirely different fashion realms and shared design philosophies/approaches that were worlds apart. they couldn't have been more dissimilar. the documentary kingdom of dreams provides some context to the mcqueen-galliano 'star designer' rivalry.

 

[MulletProof]

To be fair, the biggest reason why these conglomerates exist is because most of these designers (understandably) failed to bear children or insert a stable succession plan.

Not exactly, these houses are a relative piece of cake for them due to their long history, status and easier way to attract consumers but monopolistic practices are the way to go for any conglomerate and you do that by intimidation, cornering and forcing small business to sell so they can take over what they have, exponentially grow it and continue their expansion. If these houses were not around, they'd do it with smaller designers and I'm sure they are, and that their offers meeting a wall with some of them must not keep them very happy.

I'm a bit confused on this thread, is it for the occasional update on a conglomerate? shouldn't this be in the Designers & Collections area, then? it seemed to kick off with a 'Kering's struggling' tone but I'm unsure now..? I think this area should be kept for what it originally was (in depth discussions), updates kind of call for quick, 6th point posts. Just my 2 cents!

 

[LadyJunon]

Not exactly, these houses are a relative piece of cake for them due to their long history, status and easier way to attract consumers but monopolistic practices are the way to go for any conglomerate and you do that by intimidation, cornering and forcing small business to sell so they can take over what they have, exponentially grow it and continue their expansion. If these houses were not around, they'd do it with smaller designers and I'm sure they are, and that their offers meeting a wall with some of them must not keep them very happy.

In truth, I haven't really seen that super predatory tactic used in the industry since the 00s.

Most of the more recent acquisitions I've seen were of "defunct" houses like Patou or Schiaparelli. Then we have the deals like Versace, Valli and Dries where most of the deal is financial aid and/or a potential succession plan.

While I imagine that the corporates still have the same goals in mind, recent circumstances have forced them to be less vicious, lest they find themselves with another McQueen/Galliano/Margiela/Lang/Jil situation which seems to throw the concerned label into a period of poor critical reception and equally poor sales.

I'm a bit confused on this thread, is it for the occasional update on a conglomerate? shouldn't this be in the Designers & Collections area, then? it seemed to kick off with a 'Kering's struggling' tone but I'm unsure now..? I think this area should be kept for what it originally was (in depth discussions), updates kind of call for quick, 6th point posts. Just my 2 cents!

That was the original point of me creating this thread. I wanted to discuss the business side of Kering's brands, without bloating Sabato's/Anthony's/Demna's threads in D&C. I thought that it would be interesting to discuss and potentially theorise on the issues that got them in the current mess they're in. I was hoping updates would provoke some conversation. Maybe I should pick better ones next time...

 

[MulletProof]

^ got it!

where most of the deal is financial aid and/or a potential succession plan.

I mean, that's the polite way to package it, isn't it? they're not going to tell you hey we're going to start a company that looks identical to yours right next door and give your clients all the perks you can't afford, they're not going to go Standard Oil lol, not with the fickleness of the fashion consumer, but yeah, that little help paves the way.. same for the 'help' Phoebe is getting.. tiny little party of cats, with somehow one hyena also sitting at the table.

 

[LadyJunon]

^ got it!


I mean, that's the polite way to package it, isn't it? they're not going to tell you hey we're going to start a company that looks identical to yours right next door and give your clients all the perks you can't afford, they're not going to go Standard Oil lol, not with the fickleness of the fashion consumer, but yeah, that little help paves the way.. same for the 'help' Phoebe is getting.. tiny little party of cats, with somehow one hyena also sitting at the table.

That's not a hyena, that's just the person who suggested Pharrell Williams.

In fairness, in terms of group I would sell my name to, LVMH is at the very bottom of list for MGC's appointment alone.

 

[Nimsay]

Further thoughts on Balenciaga ….

The current collection of Balenciaga is pretty much not even worth manufacturing. The pantaboots will go down as a one of the worst things about this past era of fashion. Everyone who wants pantaboots has them already. I shudder when I see the balenciaga logo now a days. I know whatever its emblazoned on will be basic af.

PedoGate at Balenciaga

The scandal is going to drive bad press for a long time. Theyre still being dragged on twitter. Influencers are still uploading and getting views on it.

A big issue is that they didnt fire demna - Balenciaga cannot move on without publically shaming Demna. Its too late to do it now. so Balenciaga is pretty much done in the public eye.
The optics could not be worse.

Balenciagas Reputation to Normies

Normies only know Demnas Balenciaga. They think its the ultimate in excess - which it truly is.

For all intents and purposes Balenciaga is back where it was pre-nicolas. An archaic HC house - only having prestige because of the namesake.

Dior was forced to fire JG and make him a pariah in the media in order to keep their reputation. They did keep it. Contrasting that with Demna - Kering not making him persona non grata is strange. Michele got fired for dropping profits - why not Demna. This likely means Balenciaga’s reputation will not bounce back as quickly as Diors. Bernard said ‘youre not messing with my coins!’

Balenciaga par John Galliano

Its been 12 years - John is a generational talent. People should consider John may have paid his dues for that. Its also super important that he didnt make any plans or follow up with action - it was only speech.

If the Balenciaga name is already trash it doesnt really matter. Its not coming back to life for a while anyway. also he hasnt slowed MM down.

John is a great fit for Balenciaga. The Cristobal look was innovative cuts and seamwork - and well selected fabrics. John shares those similarities. Another similarity is the sort of mideval princess that permeates Cristobals work. John usually does these silhouttes with 1920s flourishes. I think Balenciagas Spanish Royal customer really shaped his core codes. If John can center that sort of Monastic Royalty energy it might capture some of the OG Balenciaga spirit.

I think that JG can only do his own look. Thats why he is bad at MM and would be bad at McQueen. Despite making gorgeous original clothes. since john doesnt change his look. the only places he works are at houses with similar codes to his own.

frankly balenciaga has nothing to lose. By the time Balenciaga is allowed to be relevant again it will be 20 years post-Dior. John will be in full swing dictating the look.

Also Kering needs to be undercutting LVMH at all times. placing in him at a house that traditionally competes with Dior is a dream come true business wise. Facebook hired all of Twitters fired employees for this same reason.

Thats why he should be at Balenciaga.

Furthermore I would move Balenciagas show to Madrid or Barcelona fashion week for maybe 10 seasons. Definitely take the show out of Paris so that people miss it. Barcelona and Madrid are in Balenciaga history. John can go wild with his showmanship. Only the most devoted Balenciaga loyalist will go.

 

[Deleted member 116957]

I'm not sure if I agree with your reading of what Balenciaga under Balenciaga was known for, or at least what my brain conjures up when I think of Balenciaga. It definitely isn't Spanish princess (but of course they wore him... what was the saying, Dior was for millionaires and Balenciaga was for billionaires back then)? When I think of Balenciaga I think of deceptively simple appearing (to the untrained eye) clean and innovative cuts. To me, it's all about construction!!! I wouldn't say minimalist is the right term, but his clothes had much less "frou frou" than someone like Christian Dior or Pierre Balmain. I'm not a huge Galliano fan, I liked the aura of his time at Dior and the showmanship, but IMO that doesn't translate seamlessly to Balenciaga. His stuff for MM is fine, but I'm not crazy for it.

 

[LadyJunon]

Further thoughts on Balenciaga ….

The current collection of Balenciaga is pretty much not even worth manufacturing. The pantaboots will go down as a one of the worst things about this past era of fashion. Everyone who wants pantaboots has them already. I shudder when I see the balenciaga logo now a days. I know whatever its emblazoned on will be basic af.

PedoGate at Balenciaga

The scandal is going to drive bad press for a long time. Theyre still being dragged on twitter. Influencers are still uploading and getting views on it.

A big issue is that they didnt fire demna - Balenciaga cannot move on without publically shaming Demna. Its too late to do it now. so Balenciaga is pretty much done in the public eye.
The optics could not be worse.

Balenciagas Reputation to Normies

Normies only know Demnas Balenciaga. They think its the ultimate in excess - which it truly is.

For all intents and purposes Balenciaga is back where it was pre-nicolas. An archaic HC house - only having prestige because of the namesake.

Dior was forced to fire JG and make him a pariah in the media in order to keep their reputation. They did keep it. Contrasting that with Demna - Kering not making him persona non grata is strange. Michele got fired for dropping profits - why not Demna. This likely means Balenciaga’s reputation will not bounce back as quickly as Diors. Bernard said ‘youre not messing with my coins!’

Balenciaga par John Galliano

Its been 12 years - John is a generational talent. People should consider John may have paid his dues for that. Its also super important that he didnt make any plans or follow up with action - it was only speech.

If the Balenciaga name is already trash it doesnt really matter. Its not coming back to life for a while anyway. also he hasnt slowed MM down.

John is a great fit for Balenciaga. The Cristobal look was innovative cuts and seamwork - and well selected fabrics. John shares those similarities. Another similarity is the sort of mideval princess that permeates Cristobals work. John usually does these silhouttes with 1920s flourishes. I think Balenciagas Spanish Royal customer really shaped his core codes. If John can center that sort of Monastic Royalty energy it might capture some of the OG Balenciaga spirit.

I think that JG can only do his own look. Thats why he is bad at MM and would be bad at McQueen. Despite making gorgeous original clothes. since john doesnt change his look. the only places he works are at houses with similar codes to his own.

Frankly balenciaga has nothing to lose. By the time Balenciaga is allowed to be relevant again it will be 20 years post-Dior. John will be in full swing dictating the look.

Also Kering needs to be undercutting LVMH at all times. placing in him at a house that traditionally competes with Dior is a dream come true business wise. Facebook hired all of Twitters fired employees for this same reason.

Thats why he should be at Balenciaga.

Furthermore I would move Balenciagas show to Madrid or Barcelona fashion week for maybe 10 seasons. Definitely take the show out of Paris so that people miss it. Barcelona and Madrid are in Balenciaga history. John can go wild with his showmanship. Only the most devoted Balenciaga loyalist will go.

I agree with the fact that Kering will most likely have to fire Demna to redeem Balenciaga. I imagine that they'll also have to make Cédric Charbit (CEO), Martina Tiefenthaler (CCO) and Ludivine Pont (CMO) resign from their positions too.

The next CEO/CD duo will definitely need to pull a 180 from Demna, which probably includes rebuilding the design and marketing teams. They'll probably also find themselves needing to find a new set of ambassadors too.

As much as I'd love for Galliano to design for a house like Balenciaga, I don't really see him moving from Margiela. Galliano turns 63 this November and could possibly be retiring this decade. That would probably also explain why the house has shifted to quietly releasing collections for the most part.

The best thing for Balenciaga to do would be to have a boring interim creative director to helm the house for 2 to 3 years to neutralise and stabilise the house. During this time, they should focus on creating a range of reliable accessories for the next creative director to depend on.

I'm not sure if I agree with your reading of what Balenciaga under Balenciaga was known for, or at least what my brain conjures up when I think of Balenciaga. It definitely isn't Spanish princess (but of course they wore him... what was the saying, Dior was for millionaires and Balenciaga was for billionaires back then)? When I think of Balenciaga I think of deceptively simple appearing (to the untrained eye) clean and innovative cuts. To me, it's all about construction!!! I wouldn't say minimalist is the right term, but his clothes had much less "frou frou" than someone like Christian Dior or Pierre Balmain. I'm not a huge Galliano fan, I liked the aura of his time at Dior and the showmanship, but IMO that doesn't translate seamlessly to Balenciaga. His stuff for MM is fine, but I'm not crazy for it.

Balenciaga is very similar to Dior (or the other way round tbh), but it doesn't have Dior's archetypal 50s coquetry. I think that the best way to describe Balenciaga would be pure and austere, but in constant evolution. That could probably explain why Cristobal's work has aged better in the 60s, 70s and 80s than Dior's did.

 

[Avonlea]

I wouldn't say minimalist is the right term, but his clothes had much less "frou frou" than someone like Christian Dior or Pierre Balmain.

Karl said that it was boring working for Balmain because Pierre did mostly circle gowns, just with different embroideries (Hello MGC lol).

 

[gallianostan]

I think that JG can only do his own look. Thats why he is bad at MM and would be bad at McQueen. Despite making gorgeous original clothes. since john doesnt change his look. the only places he works are at houses with similar codes to his own.

john is doing great at margiela. also, do you really think he would be bad at mcqueen? of all the houses, that's the one whose codes are the most similar to john's.

 

[Deleted member 116957]

Balenciaga is very similar to Dior (or the other way round tbh), but it doesn't have Dior's archetypal 50s coquetry. I think that the best way to describe Balenciaga would be pure and austere, but in constant evolution. That could probably explain why Cristobal's work has aged better in the 60s, 70s and 80s than Dior's did.

Yes, "pure and austere" are the perfect words to describe his work! They just weren't coming to mind!

 

[kasper!]

They just invest in Vhernier, an Itaian jewelry brand. I quite like the touch of their jewelry department. It would have been great if they could score Harry Winston....

 

[Constructionist]

john for balenciaga would only work if they're going for a complete image rehaul. i'd rather have him at mqueen, to be honest. the house codes align quite well with his design sensibilities. although, i don't think he'd ever do it considering lee was a contemporary of his.

Margiela isn't his contemporary? Or is it more of a Country man thing?

 

[gallianostan]

Margiela isn't his contemporary? Or is it more of a Country man thing?

again, i don't think margiela and galliano were peers in the same way mcqueen and galliano were. vastly different design philosophies, operating in different spheres of fashion.

 

[LadyJunon]

Management at Gucci is shifting once more with Alessio Vannetti returning to Gucci as Chief Brand Officer:

Alessio Vannetti Is Returning to Gucci as Chief Brand Officer
After several years at Valentino, he takes over duties from Susan Chokachi, who is exiting Gucci after 25 years.

By MILES SOCHA
AUGUST 31, 2023, 2:47PM
The changes keep coming at Gucci, with the runway debut of new creative director Sabato de Sarno only weeks away.

The Italian luxury brand said Alessio Vannetti is returning as its new executive vice president, chief brand officer, effective Sept. 4.

Vannetti, who was Gucci’s worldwide communications director from 2015 to 2019, has spent the last three and a half years at Valentino as its chief brand officer.

Back at Gucci, he takes over duties from Susan Chokachi, who is leaving the company after 25 years of service, most recently as executive vice president, chief brand and client officer.

Vannetti will lead Gucci’s brand and client engagement team and oversee “the company’s strategic brand and image direction, marketing, communications, metaverse and client engagement efforts,” the Kering-owned fashion house said in a statement Thursday evening.

He reports to Jean-François Palus, Gucci’s chief executive officer for a transitional period. Palus lauded Vannetti’s “extensive experience across prominent fashion brands, combined with his deep understanding of Gucci’s legacy, makes him the right choice to steer our brand forward.”

He noted Vannetti would work closely with him, De Sarno “and everyone at Gucci to craft the new chapter of the house, while enhancing our brand heritage, values and image consistency.

“I would like to extend my gratitude to Susan Chokachi for her remarkable contribution to Gucci for more than two decades and wish her well in her future endeavors,” Palus added.

Chokachi held many roles at Gucci, but is probably best known for being president and CEO of the Americas region from 2016 to 2022.

She “contributed to develop the company culture and helped to foster Gucci’s industry-leading position for global impact through Gucci Changemakers, the company’s legacy gender equality campaign Chime for Change, and the Gucci Global Equity Board,” the statement said, adding that Chokachi was “respected for her leadership, brand vision and business impact.”

Vannetti’s résumé includes senior positions in press and communications at Prada and Zegna.

Gucci has been rocked by executive turmoil, confirming in July that Marco Bizzarri, president and CEO of Gucci since 2015, is leaving the company. His last day at Gucci will be Sept. 23, after the brand’s spring 2024 show in Milan.

In the wake of Bizzarri’s exit, Francesca Bellettini, president and CEO of Yves Saint Laurent since 2013, was appointed Kering deputy CEO, in charge of brand development, in addition to her current role. All brand CEOs will report to her, and she will be responsible for steering the group houses in their next stages of growth, as reported.

At Gucci, Vannetti will be reunited with some of his former colleagues, including de Sarno, who was plucked from Valentino to succeed Alessandro Michele at the creative helm earlier this year.

Source: WWD

 

[Lola701]

again, i don't think margiela and galliano were peers in the same way mcqueen and galliano were. vastly different design philosophies, operating in different spheres of fashion.

Galliano started in 1984(?) and Margiela went solo in 1988…McQueen emerged in 1992.
McQueen and Galliano is an interesting rivalry to have because they both from UK, came from CSM, from humble backgrounds and they had similar influences…But much like the rivalry between Karl and Yves, we stops there because the design philosophy is not the same. When you strips away the theatricality you realize that they are actually very very different.

‘When you closely look at the work of Margiela and Galliano, you see what they have in common…There’s the deconstruction, the fluidity, the odd mix and matches. Lee designed armors! Even when he did flou… You see the influences of the 80’s in Lee’s work. That hard edge of Montana.
Margiela and Galliano lived through the 80’s and they were totally detached from that…Even when they referenced that time. And I think that their romanticism is closer to each other than to Lee’s.

‘For me Giles Deacon should have been the one to take over McQueen.

‘Galliano is good for Margiela. The only thing that does not match with Margiela is his theatricality. And I think that Margiela as a brand and as an heritage is more playful for someone like John…Margiela allows him to have a different POV because when Margiela referenced the past, it wasn’t obvious for example…Which is what Lee and John used to be sometimes.

 

[style_expert]

Interesting news today:
CAA Sells Majority Stake to Francois-Henri Pinault’s Artemis
CAA Sells Majority Stake to Francois-Henri Pinault's Artemis - Variety

It will be interesting to see how this can play out for Kering brands in terms of marketing, celebrity endorsements and the whole entertainment industry entanglement in general.

 

[style_expert]

Seems like this thread was created right on time. Now the departure of Sarah Burton at McQueen.
I have to say it's a lot for Kering to handle at the moment. If they're capable of making the right decisions, things could swing either way.
Positioning McQueen as a brand remains difficult I think, no matter the the designer.