Balenciaga is a Spanish luxury fashion house founded in 1917 by designer Cristóbal Balenciaga. The company was initially located in the Basque region of Spain before the civil war forced Balenciaga to move his operations to Paris in 1937. Kering acquired a 91% stake in Balenciaga in 2001 for an undisclosed sum. The French multinational then purchased the rights to the perfume brand, which likely made them the sole owner. The Pinault family controls Kering through the Artémis group, which holds a 41.7% stake in the Kering Group.
| Aspect | Details |
|---|---|
| History | – Founded by designer Cristóbal Balenciaga in 1917. |
| – Initially located in Spain, later moved to Paris in 1937. | |
| Ownership | – Kering acquired a 91% stake in Balenciaga in 2001. |
| – Kering likely became the sole owner after purchasing Balenciaga’s perfume brand. | |
| Ownership Structure (Kering) | РThe Pinault family controls Kering through the Art̩mis group, holding a 41.7% stake in Kering. |
| Business Model | – High-end luxury fashion brand offering ready-to-wear clothing, accessories, footwear, and handbags. |
| – Exclusive distribution through select flagship stores, luxury department stores, and the official website. | |
| – Emphasis on bold, contemporary designs and avant-garde fashion pieces. | |
| Organizational Structure | – Design and Creative Team responsible for fashion collections. |
| – Production and Supply Chain management for product quality and exclusivity. | |
| – Retail and Distribution operations, including flagship stores and luxury retail collaborations. | |
| – Marketing and Communication for brand promotion. | |
| – Corporate Leadership influenced by Kering’s executive team. | |
| Key Highlights | – Balenciaga’s journey from its foundation to modern prominence. |
| – Distinctive design ethos marked by innovation and boldness. | |
| – Exclusive distribution strategy and sustained relevance in the luxury fashion market. |
Early inspiration
After Balenciaga’s father passed away while he was a child, his mother became a seamstress to make ends meet.
He reportedly became infatuated with her work and started his journey in fashion by becoming an apprentice at a resort in San Sebastian.
Like many of his contemporaries, Balenciaga was a self-taught prodigy who did not have the luxury of fashion schools or other tools to show him how to design clothing.
First store
The first Balenciaga haute couture house was opened in San Sebastian in 1917. However, the store was called Elisa after a shortened version of his mother’s maiden name.
The second store followed three years later in Madrid.
Balenciaga then moved to Paris and established his first fashion couture house on Avenue Georges V.
He quickly became the city’s most exclusive couturier thanks to his superior garment construction and pattern-cutting skills.
Above all, Balenciaga was known for the way he started a design with fabric rather than sketching it first.
Though an introvert, Balenciaga nevertheless admired and befriended the likes of Christian Dior, Carmel Snow, Diane Vreeland, and Hubert De Givenchy.
Post-war period
In the 1950s post-war period, Balenciaga’s designs incorporated sleek lines which contrasted with the hourglass shape popularized by Dior.
He also pioneered styles that would become his trademarks such as the famous bracelet sleeves and volume-filled balloon hems.
After a successful couple of decades where the company revolutionized fashion, Balenciaga himself closed the fashion house in 1968 and then died in 1972 at the age of 77.
Balenciaga is reborn
In 1986, the cosmetics, skincare, and perfume maker Jacques Bogart SA acquired the rights to Balenciaga from the German company Hoechst AG.
Balenciaga was then relaunched with the first prêt-à -porter (ready-to-wear) collection under the direction of Michael Goma. In 1997, Goma was replaced by Josephus Thimister who, with Franco-Belgian designer Nicolas Ghesquière, oversaw the company’s transformation into a modern luxury brand.
Who owns Balenciaga today?
Then known as Pinault-Printemps-Redoute, French multinational Kering acquired a 91% stake in Balenciaga in 2001 for an undisclosed sum.
From that point onward, it joined other brands in the Kering stable such as Yves Saint Laurent, Boucheron, and Alexander McQueen.
In 2006, Kering purchased Balenciaga’s perfume brand from The Bogart Group.
While exact details are scarce, the deal likely saw Kering become the sole owner of the company.
Business Model of Balenciaga:
Balenciaga operates as a high-end luxury fashion brand, and its business model includes the following key elements:
- Fashion Collections: Balenciaga designs and produces high-end fashion collections, including ready-to-wear clothing, accessories, footwear, and handbags.
- Exclusive Distribution: The brand follows an exclusive distribution strategy, selling its products through select flagship stores, luxury department stores, and its official website.
- Creative Direction: Balenciaga’s creative direction is led by the design team, which aims to create innovative and avant-garde fashion pieces.
- Brand Identity: The brand is known for its bold and contemporary designs, often incorporating unique silhouettes and artistic elements.
Organizational Structure of Balenciaga:
Balenciaga’s organizational structure likely includes the following components:
- Design and Creative Team: Balenciaga has a team of designers and creatives responsible for creating the brand’s fashion collections and defining its unique aesthetic.
- Production and Supply Chain: The company manages its production and supply chain to ensure the quality and exclusivity of its products.
- Retail and Distribution: Balenciaga operates its flagship stores and manages distribution to luxury retailers worldwide.
- Marketing and Communication: The brand has a marketing and communication team responsible for brand promotion, advertising, and public relations.
- Corporate Leadership: Kering, as the owner of Balenciaga, has its executive leadership overseeing the strategic direction and management of the brand.
Key takeaways
- Balenciaga is a Spanish luxury fashion house that was founded in 1917 by designer Cristóbal Balenciaga. The company was initially located in the Basque region of Spain but then moved to Paris when war broke out.
- In the 1950s, Balenciaga’s designs incorporated sleek lines which contrasted with the hourglass shape popularized by Dior. Over this time he developed the trademarks that made the company what it is today. When Balenciaga died in 1972, his company was passed between multiple owners before it was reimagined as a modern brand.
- Kering acquired a 91% stake in Balenciaga in 2001 for an undisclosed sum. The French multinational then purchased the rights to the perfume brand which likely made them the sole owner.
Key Highlights:
- About Balenciaga:
- Balenciaga, founded in 1917 by Cristóbal Balenciaga, is a Spanish luxury fashion house.
- Originally based in Spain’s Basque region, the brand relocated to Paris in 1937 due to the civil war.
- Ownership Structure:
- Kering: Acquired a 91% stake in Balenciaga in 2001 and later likely became the sole owner after purchasing Balenciaga’s perfume brand.
- Artémis Group: The Pinault family controls Kering through the Artémis group, holding a 41.7% stake in Kering.
- Historical Perspective:
- Cristóbal Balenciaga’s early inspiration came from observing his seamstress mother.
- The first haute couture house under the brand was opened in San Sebastian in 1917, named “Elisa” after his mother’s maiden name.
- Balenciaga’s designs, especially during the 1950s, deviated from the popular hourglass shape, introducing unique styles like bracelet sleeves and balloon hems.
- The brand underwent various ownership changes and transformations before its acquisition by Kering.
- Business Model:
- Balenciaga offers high-end luxury fashion collections, spanning ready-to-wear clothing, accessories, footwear, and handbags.
- The brand emphasizes exclusivity in its distribution, selling through select stores, luxury department stores, and its official website.
- Balenciaga’s distinct brand identity is characterized by bold, contemporary designs and avant-garde fashion pieces.
- Organizational Structure:
- Design and Creative Team: Responsible for crafting the brand’s fashion collections and distinctive aesthetic.
- Production and Supply Chain: Manages production processes, ensuring product quality and exclusivity.
- Retail and Distribution: Balenciaga operates flagship stores and collaborates with luxury retailers globally.
- Marketing and Communication: Oversees brand promotion, advertising campaigns, and public relations.
- Corporate Leadership: As part of the Kering group, Balenciaga’s strategic direction is influenced by Kering’s executive leadership.
- Conclusion:
- Balenciaga, with its rich history dating back to 1917, has evolved into a defining name in the luxury fashion industry.
- The brand’s journey, from its foundation by Cristóbal Balenciaga to its modern-day status under Kering, showcases its adaptability and sustained relevance.
- Balenciaga’s design ethos, marked by innovation and boldness, combined with its exclusive business approach, positions it as a prominent luxury fashion house in the global market.
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