After years of consecutive price increases, in March and September this year, the French luxury brand Chanel implemented two rounds of global or regional price hikes on several of its most classic handbags.
According to Chanel’s last publicly released annual report, in 2022, all product categories achieved double-digit “exceptional growth,” driving a 17% year-over-year increase in sales revenue, reaching a record $17.22 billion. The company disclosed that nearly half of the revenue growth in 2022 came from price increases.
Undoubtedly, Chanel’s “pricing power” in the global luxury market is second to none, and this power is supported by its century-long cultivated “brand strength.” Although Chanel possesses highly differentiated and rich brand assets, it also needs to continuously invest “real money” to maintain and strengthen this valuable brand power. In May this year, Chanel disclosed plans to double its total capital expenditure globally in 2023 to about $1.3 billion.
Luxe.CO Intelligence, a fashion industry research institution under Luxeplace.com, has newly launched an annual luxury brand series report, “Chanel in 2023.”
This report is based on comprehensive coverage and real-time updates of brand public dynamics and data by Tong.Luxe.CO. It covers 258 major events that occurred both domestically and internationally for Chanel from January 1 to December 18, 2023, involving retail stores, supply chain, category expansion, communication themes and content (including pop-ups, exhibitions, art and cultural activities, advertisements, fashion shows, etc.), and talent cultivation. This reflects the main focus of Chanel’s capital expenditure in the past year.
By comprehensively sorting and summarizing Chanel’s important developments over the past year, we aim to help everyone understand the latest brand development strategies and implementation details of this top luxury enterprise, providing practical references and inspiration for industry insiders from multiple perspectives.
As of December 18, 2023, Luxe.CO Intelligence has tracked a total of 30 global store dynamics for Chanel:
- 6 new fashion boutiques worldwide: 3 overseas and 3 in China. Among them, 2 of the 3 in China are Chanel Les Salon Prives, and another exclusive salon store in Chengdu is also under construction, in line with Chanel’s disclosed store investment plan in May, namely “opening more independent boutiques offering exclusive services to top customers, with Asia as the first pilot region.”
- 10 new perfume and beauty stores worldwide: 2 in the USA and 8 in mainland China, with another in Causeway Bay, Hong Kong also being heavily leased for planning; in March, Chanel also opened its 2nd shoe boutique in China on the 4th floor of Beijing SKP.
- Global store renovations and upgrades include: 3 fashion boutiques (including the first mainland China store opened in 1999 at the Peninsula Hotel Beijing), 7 Chanel perfume and beauty stores in mainland China, and 1 watch and jewelry boutique in Takashimaya Singapore.
In 2023, Chanel continues to innovate in beauty, skincare, and other sub-categories. In the 43 new product launches up to December 18, makeup had the highest frequency of new releases in all categories, with 17 times; followed by clothing (10 times) and skincare (8 times). Since 2022, Chanel has been continuously expanding its beauty creative forces, strengthening this business:
- In October 2022, Chanel announced the formation of the COMETES COLLECTIVE team, establishing an emerging makeup artist community and appointing three makeup artists as global creative beauty partners, responsible for makeup product creation.
- In November this year, Chanel announced the establishment of a new beauty business team called “Ideation and Creative Influence Strategies,” aiming to lead the influence of the beauty department.
Globally, in terms of communication, in the past year, apart from regular advertising dynamics (a total of 109), exhibitions (6), big shows (6), and spokespersons (4), Chanel continues to use art and culture as an important focus for brand content building, sponsoring/organizing 28 art and culture-related events, covering
- Film: Cooperating with the China Film Directors’ Guild, sponsoring the FIRST Youth Film Exhibition/Cannes Film Festival entries, and providing costumes for the popular summer movie “Barbie.”
- Dance: Continuing to support the Paris Opera Ballet, designing costumes for dance performances, etc.
- Literature: Regularly holding “Rue Cambon Literary Gatherings,” inviting actresses and female writers to share their reading experiences in discussions, talks, and readings.
- Discussion: Bringing “Chanel Talk” events to more Eastern cities such as Tokyo and Shenzhen, discussing more art creation topics with students.
To learn more about Chanel’s important dynamics over the past year, please click to download the full report in Chinese.
The detailed contents of “Chanel in 2023” are as follows:
To read the full report, please click here to download (available only to Luxeplace subscribers).
About Luxe.CO Intelligence
Luxe.CO Intelligence has been deeply involved in the fashion and luxury sectors for a long time. Leveraging our continuously expanding industry network, data intelligence, and knowledge system, we are committed to providing professional, innovative, and forward-looking consulting services to brands and companies in China and overseas. Our areas of focus include brand revitalization and upgrade strategies, brand content and communication strategies, niche industry positioning and opportunity analysis, and strategies for entering the Chinese market.
View all reports published by Luxe.CO Intelligence: https://luxe.co/page/hlzk
In the past six months, other brand research reports released by Luxe.CO Intelligence include:
“Hermès in 2023”
“ON in China”
“Maje in China”
“lululemon in China”
“CELINE in China”
…
We release multiple original research reports from Luxe.CO Intelligence each month and occasionally hosts industry lectures and forums. For any collaboration inquiries, please feel free to contact us.
Email: lci@luxe.co
About Tong.Luxe.CO
Launched on Luxe.CO website and app in early summer 2022, Tong.Luxe.CO is an innovative digital service that tracks daily activities of fashion brands with all-encompassing coverage for China market and selective coverage for overseas market.
The activities covered include product launch, store opening, marketing events, as well as personnel change, financial reporting and other major corporate initiatives.
Through Tong.Luxe.CO, you could find over 2000 entries on average each month about more than 1000 brands in luxury, fashion, beauty, sports and outdoor …, all tagged carefully to facilitate multi-dimensional analysis for further research.
