Chanel - Fashion for UK
Chanel shops in UK are running in London and Manchester with its corporate office located in London. All Chanel products (fragrances, hand-bags, sunglasses, jewelry, watch etc,) are available in the UK market. Customers can even shop online from the portal in UK. Dorothy Perkins, Marks & Spencer, FCUK are some of the leading fashion brands of UK which pose threats to Chanel. In the UK the fine fragrance market is worth around £360m - Chanel has more than 10% of that market.
The European market is worth around £8bn. Chanel number five remains the best selling fine fragrance in Europe. Allure, which is just a few years old, is third on the list. In words of Lyle Saunders, Vice-president of Chanel creative, "Chanel has been redesigning its beauty boutiques, of which there are 100 worldwide. There is a Chanel boutique at the Barcelona Airport, which is within the Duty Free shop but appears to be a distinct store.
It works beautifully and looks great. A boutique at Harvey Nichols in London and the installation at Bloomingdale's in New York City are global flagships representing what Chanel will look like at retail." The Harvey Nichols boutique presents the brand's complete collection in the Chanel Color Studio. The Studio offers more than 500 SKUs, with more than a third of them new to the UK.
The UK fashion retail market is one of the most aggressive and disjointed retail sectors. The prevalent economic environment brings challenges as well as a number of opportunities. Shops are now all the more concerned with achieving the exact brand-mix in place, leaving new opportunities for innovative and exciting collections. The British shops are still buying into international collections as these make up an important part of the British fashion scene.
For Chanel to stay competitive and profitable in the UK market, they have to focus not only on quality but also on affordable prices as most UK customers look at both before making a purchase. Online Shopping is an accepted norm for UK customers and this area of the industry has seen continued growth since before the 2007 recession. The UK now has 150,000 online retail business and more than 600,000 British jobs are either directly in or support e-retail (Interactive Media in Retail Group (IMRG), 2010).
However, e-retailing currently only accounts for less than 7% of net retail sales while this is calculated to rise. Chanel still has a long way to go in UK. What business strategies should Chanel implement to expand its business in UK? Can Chanel come up with a few customized products catering to UK population? only time will tell.