Chanel - Global Operations
- Company Snapshot & Product Portfolio
- Historical and Strategic Developments
- Industry Outlook
- Marketing & Promotional Strategies
- SWOT Analysis
- Peer Benchmarking & Future Outlook
- Risks, Challenges and Limitations
- Corporate Social Responsibility and other initiatives
- Recommendations & Future Research Scope
Chanel S.A., fondly known as Chanel is a privately owned fashion brand. It was founded by Gabrielle "Coco" Chanel in 1909. Company is headquartered at Paris, France and is present in more than 310 locations worldwide. The annual revenue as recorded in 2010 stands to be ?1.809 billion.The company offers an exotic product line offering Haute Couture (customized clothing), high-end clothes, fragrances, jewelry, hand-bags, cosmetics etc. The brand is just another name for elegance and style. The versatile, evening cocktail dress, also known as 'Little Black Dress" among women is said to have been the creation of the brand. Chanel no.5, the perfume is a hit among customers.
Company faces competition from Louis Vuitton, Gucci, Christian Dior, ClarinsWhile Chanel targeted women aged between 35-50 years originally, its customer base now consists of young women too.Chanel lives up to its brand image in all whatever it does for promotions. Starting from fashion shows to commercials to billboards to brand ambassadors, everything is carried out in style and elegance.
Retail Industry worldwide is growing. Apparel industry is characterized by features like short life cycles, multiple product variety, extended and stiff supply processes. Last 20 years have been very remarkable in its transition phase. A few of the primary reasons are:
- Wholesale operations
- E-tailing/ E-retailing
Along with the existing opportunities, the industry also faces certain challenges like Demand and Supply mismatch, high production costs, stiff competition etc. Clothing trends and fashion changes at regular intervals to which companies need to come up with contemporary clothing lines every now and then. Chanel does that beautifully. Chanel keeps up to the changing market trends of clothing, accessories etc. Customers can choose from an array of products. There is something available for everyone.
With numerous Chanel stores being opened worldwide, the company also offers bright career prospects for everyone. Working Conditions at the company are considered cooperative. They provide their employees with a healthy work environment and other fringe benefits.
Chanel has been managing their Brand Management activities in an exquisite manner. They have always got the high-profile celebrities modeling for them and endorsing their product lines across the world. The famous poster of Marilyn Monroe spattering herself with Chanel no. 5 (fragrance) is still selling.The Global Retail picture is fast changing with various changes taking place. Increased Globalization norms have transformed the entire world into one common trade platform. Asian countries like China, India are strong competitors globally owing to their cheap labor costs and easy raw material availability.
Effortless access to information tools like TV, Internet is driving retail industry to e-commerce. Companies, if want to stay ahead in the race; have to be present on the web too. Will Chanel be able to drive its E-commerce with equal astuteness? Will Chanel survive the threat from developing economies and competitors offering same products at affordable prices? We need to wait and watch.