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
The SWOT analysis for Chanel is presented below in a matrix followed by the detailed analysis report:
| Strengths | Weaknesses |
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
|
| Opportunities | Threats |
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
|
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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.
The PESTLE analysis for Chanel is presented below in a table followed by the detailed analysis report:
| Political | Economical |
1. Dispute between France and Middle East due to France’s stance on freedom of speech
2. Changes in tax rates on luxury goods in China
| 1. Rising covid cases affecting economic trends across globe
2. Downward drag on company sales due to rising global inflation
|
| Social | Technological |
1. Changing consumer behavior due to Covid-19
2. Millennials prefer buying from socially responsible brands
| 1. Virtual & Augmented reality for better consumer experience
2. Using blockchain to tackle counterfeit products
|
| Legal | Environmental |
1. Legal dispute between Chanel and RealReal
2. Business impact due to trademark dispute
| 1. Increasing pressure by animal rights group over the use of Fur
2. Focus on reduction of greenhouse gas emissions
|
On purchase the Chanel SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed Pestle Analysis of Chanel
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
1. Changing consumer behavior due to Covid-19: Increased cases of covid-19 around the world have caused consumer concern, and diverse economies around the world are feeling the effects. Consumers adapted to the crisis by adjusting their spending habits. Buyer purchasing has switched from luxury products to necessity while the pandemic has wreaked devastation on their budget. Many customers have switched brands due to price sensitivity and value for money. The number of people shopping online has increased dramatically. It is important for Chanel to factor these issues while making the strategy as it will determine the future growth of the company.
The remaining section under "Social" is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
Major Brands :
- Holland & Holland
- Eres
- Bell & Ross
On purchase the Chanel SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
You may also be interested in other analyses of Chanel:
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| Chanel Porter's Five Forces Analysis |
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| Chanel Value Chain Analysis |
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| Chanel Covid-19 Impact Analysis |
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| Chanel Segmentation, Targeting and Positioning (STP) Analysis |
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| Chanel Ansoff Matrix Analysis |
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Check Out Analysis of Other Relevant Companies
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 and PESTLE analysis has been conducted by Pratik Vora and reviewed by senior analysts from Barakaat Consulting.
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