The Cult of Balenciaga Opens Up

Helmed by Nicolas Ghesquière, arguably the most talented fashion designer of our time, and flaunting museum-worthy collections in extravagant runway shows guarded by iron-fisted gatekeepers, Balenciaga has become known for its cultish exclusivity—even amongst plugged-in fashionistas. But with a new boutique slated to open in Las Vegas later this year, the storied French house seems ready to let go of its elitist tendencies, instead adopting a more democratic approach to the luxury business.

Although it may not seem like an obvious choice, Las Vegas is an important market for luxury brands, a place where the masses come indulge in excess. The Nevada desert city lures a melting pot of some 35 million visitors from all over the world each year, with many people coming from regions where up-market goods simply aren't available. Luxury brands are drawn to Vegas for the same reasons as blockbuster performers like Celine Dion and Cirque de Soleil—the chance to avail themselves of a large public that's eager to spend and otherwise out of their reach.

But it's not just the impending opening of its Sin City store that's lending Balenciaga a more democratic air. Although Ghesquière's critically acclaimed collections have consistently impressed from season to season, they're merely reference points for the brand's other merchandise, which can be decidedly less dramatic and silhouette-altering, and significantly more consumer-friendly. Every starlet under the Hollywood sun has carried one of Balenciaga's boxy bags with leather-tied zippers, which have spawned numerous in-house iterations as well as their own cottage industry of Chinatown knockoffs.

For years, Balenciaga's market penetration has been steadily paced. But with the recent launch of a dedicated e-commerce site and new brick-and-mortar stores opening in Los Angeles, London and Las Vegas for 2008, the house that Cristóbal built is clearly accelerating its expansion. As it gamely explores new markets, Balenciaga—along with other aggressively expanding up-market brands such as Stella McCartney—is poised to carry us into a new epoch of luxury.

—Robert Cordero