Long & interesting Balenciaga article!

  1. thanks for sharing.
  2. very interesting article, thanks for sharing!!!
  3. It makes business sense in relation to the fact that the Gucci Group is a corporate conglomerate, therefore they want to reap the benefits of their investment (Balenciaga et al...) by seeing their returns "in the black." They're specific about the timeframe and Nicolas Ghesquière's contract is about to expire, thus bags were churned out in record numbers this past year and the quality control changed - IMO.
  4. Layla, EXACTLY! I agree 10000%, I couldn't have said it better!

    I actually was going to post this article a while back and state my opinion the same way (but forgot) thanks for posting!

  5. Aw shucks, thank you :blush: and you're welcome Mimi.

    I read this article last year and I thought (what I wrote this evening) to myself it all makes sense now, i.e. the changes I have observed in regard to Balenciaga bags.
  6. wow... that's interesting...
  7. layla- YES! Their profit comes with a high price though... high quality reaps return customers, poor quality reaps first and last purchases, not to mention damaging their reputation... your word (or in this case products) must be of a certain caliber to demand consistent, repeat, loyal customers (a la LV/Chanel), without that, they are not going to have that specific (and neccessary) clientale to have healthy sales for many years. fads just do not last.
  8. Thanks for the article link!
  9. mocean - Good points. This strategy and the risk they took may or may not pan out, only time will tell. Frankly, I think this gamble was probably not the wisest thing for them to do. It's a shame too.

    There was a lot of leftover stock that did not sell this past year which I believe reflects the changes that were made with the leather and the way they were produced.

    Stores seem hesitant to carry the large inventory they had before and it appears they're sticking with the safe, neutral colors and in a few different styles. The stores also have a reputation and name they wish to protect and their clientele to go along with it.
  10. thanks for the article!:flowers:
  11. I have an easy way for them to get in the black.... sell online. It is RIDICULOUS that in this day and time a retailer would not offer their product online.
  12. This article was very interesting. I think it is unfortunate that everything in the world these days is held to the yardstick of how much profit can be squeezed out. Couture lines have historically been un-profitable. They were appreciated and valued for the prestige that the names brought to the entities that owned them. I agree with Layla that the financial squeeze has undoubtedly contributed to the problems with quality control. They probably feel that if they can can reduce costs on such reliable sellers as accessories, they will hedge against the costs they won't be able to recoup on the clothing.
    Still, I can't believe people will continue to pay $1K and up for products that are inferior, even if slightly so. Corporations have a way of shooting themselves in their collective feet, sometimes with tragic results.
  13. This is the real shocker for me bbagbubba "Still, I can't believe people will continue to pay $1K and up for products that are inferior, even if slightly so." :wondering Well said!

    There are many examples in business where the company has learned the hard way, after changing a successful formula (in this instance Bbags) and deviated from a tried and true known quality product.

    The changes may come back to haunt them, although I hope this past year or so has been a learning experience for Balenciaga and they'll take the necessary steps to get things back on track; after all, we're members of a forum dedicated to a bag we've grown to fancy and enjoy.