In the latest of a series of executive changes in fashion, Balmain has appointed Jean-Jacques Guével as CEO on Friday. Guével, who was most recently CEO of French label Zadig & Voltaire and has held executive positions at Celine and LVMH, will join the company in February 2020.
“Like everyone else in the fashion world, I have been impressed with the remarkable growth of Balmain over the past few years,” Guével said in a statement, praising the work of creative director Olivier Rousteing. The new CEO will focus on expanding the house, developing its assessors line and the brand's international growth.
Guével succeeds Massimo Piombini, who left Balmain for personal reasons earlier this month. Piombini was appointed CEO by Mayhoola for Investments soon after the Qatari fund, which also owns Italian luxury brand Valentino, acquired the Parisian house for an estimated €460 million in June 2016. The valuation was around four times the company's estimated annual sales.
Piombini’s mission was to expand the retail footprint of the brand while developing accessible product categories, including bags and sneakers, to tap into the younger consumer base captivated by creative director Olivier Rousteing’s designs and social media prowess. (Rousteing currently has 5.7 million Instagram followers, more than half of Balmain’s social following on the platform).
Rousteing, who joined Balmain in 2011, had transformed the 80-year-old French fashion house into a pop culture phenomenon thanks to his “Balmain Army” of famous friends including Beyoncé, Kim Kardashian West and Cara Delevingne.
The company, however, faced structural challenges. Piombini increased capital expenditure, opening regional offices and growing the number of employees from 200 to 500. He also lowered prices and increased the proportion of direct-to-consumer sales from 5 to 18 per cent. Piombini helped create the accessories business, which didn’t exist at the time of his appointment, with the goal to have it on par with ready-to-wear by 2022. During his tenure, the company grew by 50 per cent, on track to reach the 2019 goal of €200 million. As of March 2019, Piombini was confident in its goal of reaching $500 million in revenue by 2022.
"I think the company will maintain the current strategy, with an added focus in transforming the brand's social following through CRM and e-commerce development," says Mario Ortelli, managing partner of luxury advisory firm Ortelli&Co, adding that growing the accessories category is essential to reaching the 2022 goal.
The change of guard comes at a period of expansion for the brand, which has opened new stores in locations like Paris, Miami and Los Angeles and has made its first steps in beauty with the launch of a collaboration with Kylie Cosmetics during Paris Fashion Week in September.
This article has been updated with the announcement of Guével's appointment. (13 December 2019)
This article has been updated with additional reporting. (3 December 2019)
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