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Chanel SWOT & PESTLE Analysis

ID : 521239853| Jun 2022| 19 pages

COMPANY PROFILE -Chanel

Business Sector :Fashion & Lifestyle

Operating Geography :United Kingdom, Europe, Global

About Chanel :

Chanel is a high-end fashion house founded by Gabrielle Chanel at the turn of the century in 1910 with its headquarters in London, United Kingdom. Its products include Ready-to-Wear, Leather Goods, Fashion Accessories, Eyewear, Fragrances, Makeup, Skincare, Jewelry, and Watches. CHANEL is also noted for its Haute Couture collections, which are showcased twice a year in Paris, and for having amassed a huge number of specialist suppliers known as the Métiers d'Art. There are more than 120 boutiques in the company's global network. Chanel also owns lingerie and swimwear company Eres and runs seven ateliers through Paraffection, which is controlled by chairman Alain Wertheimer's family. Among the brand's most well-known goods are the Chanel Suit, Chanel No. 5 perfume, and the "little black dress." After the United States, China is Chanel's second-largest beauty market. One-third of Chanel's sales come from the United States, China, and France. The company's items are available through its shops as well as other retailers. CHANEL’s Métiers de la Mode signed the "1 jeune, 1 solution" (1 young person, 1 solution) collaboration agreement on January 25th 2022, to support, train, and facilitate the entry into the professional lives of young people under 30 across the country.

Chanel's USP lies in its being one of the first to introduce prêt-a-porter ready-to-wear clothing and is now a global leader in the luxury clothing area enjoying strong brand equity and customer loyalty. The mission statement of Chanel reads, "To be the Ultimate House of Luxury, defining style and creating desire, now and forever."

Chanel Revenue :


$15.6 billion - FY ending 31 December 2021 (y-o-y growth of 49.6%)
$10.1 billion - FY ending 31 December 2020

Competitive Analysis of Chanel

SWOT
PESTLE
The SWOT analysis for Chanel is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Chanel is one of the most valuable brands in the world
2. Most popular luxury brand in China
3. Strong social media following
4. Popular celebrity endorsement
5. Consistent strong financial performance over the years
1. Passing of Chanel’s creative director Karl Lagerfeld
2. Limited target market due to its product being in premium category
3. Fashion category not available for sale through online channel
OpportunitiesThreats
1. Omni Channeling the business for improved customer experience
2. Opportunity to expand into emerging markets
3. Fashion show to create buzz and increasing brand visibility
4. Improving overall sales by adding fashion category in online sales channel
1. Increasing covid cases affecting company revenue
2. Counterfeits product available in the market
3. Calls for boycott of French goods in Islamic countries
4. Currency risk due to fluctuating exchange rate
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Chanel

Strength

1. Chanel is one of the most valuable brands in the world: Chanel is a century old luxury fashion brand based out of France which offers premium products across various categories such as designer clothing for male & female, handbags, belts, and other accessories. It has established itself as a brand with a unique fashion identity through its design while serving some of the most high-profile clients like Marilyn Monoroe, Jackie Kennedy, Kiera Knightley and others. Chanel was ranked 52 in Forbes list for world’s most valuable brands in 2020. Today it is one of the fastest growing luxury fashion brands in the world. According to Statista its brand value in 2021 was equal to approx. $13.2 billion which makes it a top player in the luxury fashion industry alongside Gucci, Hermes and Louis Vuitton.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

1. Passing of Chanel’s creative director Karl Lagerfeld: Karl Lagerfeld was one of the most celebrated and iconic fashion industry legends who headed Chanel’s design as its creative director since 1983. He joined at a time when Chanel was in decline since the death of its founder in 1971 and transformed the business line by redefining house classics with a more modern take and making it more appealing for younger international clients, saving the company from a financial collapse. Karl designed Chanel’s ready-to-wear and couture lines, which Chanel loyalists highly liked. He created the most famous Chanel logo in the early ’80s. Chanel’s success today is primarily attributed to his contribution. His death marks a passing of an era and has left a gaping hole for the company, which will take a long time to fill.

The remaining section under "Weaknesses" is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Brands :

  • Holland & Holland
  • Eres
  • Bell & Ross
SWOT & PESTLE (combined)
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TABLE OF CONTENTS
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References used in Chanel SWOT & PESTLE Analysis Report

1. Chanel | Forbes - https://www.forbes.com/companies/chanel/?sh=194aae4c1ca2
2. New Ranking Shows Chanel is Favourite Brand of Wealthy Chinese - https://www.businessoffashion.com/news/china/new-ranking-shows-chanel-is-favourite-luxury-brand-of-wealthy-chinese/
3. 12 ways Karl Lagerfeld changed the fashion world - https://www.insider.com/how-karl-lagerfeld-changed-the-fashion-industry-2019-2
4. Focussing On Omni-channel In The Fashion Industry - https://fashionbi.com/newspaper/focussing-on-omni-channel-in-the-fashion-industry
5. France urges Arab nations to prevent boycotts over Macron's cartoons defence - https://www.bbc.com/news/world-europe-54683738
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Chanel SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2022). Chanel SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/chanel/ [Accessed 30 Jun, 2022].

In-text: (SWOT & PESTLE.com, 2022)

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Chanel SWOT and PESTLE analysis has been conducted by Pratik Vora and reviewed by senior analysts from Barakaat Consulting.

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