Luxury Chanel Has Made A Mistake In The Chinese Market.

Recently, French luxury

Chanel CEO Maureen Chiquet abruptly resigned, mainly because of differences between individual and company strategy. Meanwhile, luxury industry, including Chanel, is suffering a serious blow.

Maureen Chiquet has been a CEO in the company for nine years, and is one of the few women who handle large luxury brands.

According to the news, Chanel brand holders Alain Wertheimer and brother Gerard will take over the brand until they find a new CEO replacement.

Some industry analysts pointed out that the departure of Maureen Chiquet will bring shock to Chanel management team, which will bring serious challenges to Chanel brand development.

In the statement, the company thanked Maureen Chiquet for its contribution in the work, saying that she was responsible for the company's global expansion, enhanced Chanel's position in the luxury industry and increased all kinds of businesses.

Exane BNP Paribas analyst Luca Solca said that Chanel Chiquet, who worked at Gap and L'OREAL, quit Chanel, which is not surprising because Chanel has made mistakes in the Chinese market.

Last year, Chanel was the first luxury brand to adopt price cuts because of China's foreign exchange and tariff gap.

Luca Solca points out: "Chanel brand seems to have been overexposed, and recent price adjustment measures seem to further exacerbate this problem.

So I wasn't overly surprised when I saw the news of her departure.

At the beginning of 2015, under the predicament of continuous recession, Chanel, which consistently maintained the high-end route and the highest priced Asian region, began to adjust its marketing mode.

At the beginning of last year, Chanel cut 20% in the Chinese market and adopted the strategy of global market parity to give the whole luxury goods.

With a sense of consternation, a wave of price cuts swept across the luxury sector has been lifted.

Earlier fashion headlines reported that Chanel began to sell in disguise in China and other parts of Asia at the end of last year.

In the sluggish fashion retailing industry, Chanel also can't sit still and start doing the same thing as Prada and Gucci, that is, discount sales to attract consumers. According to local media, Chanel's high-end product range in Hongkong and Korea has the lowest price discount of 50 percent off.

There are people in the industry who say that luxury brands do not always strive to attract consumers by increasing discount. Large discounts are only effective for loyal customers. Besides, large scale sales promotions or consumers will not buy expensive products again, which is a vicious circle. Discount sales promotion is the most helpless strategy for luxury brands, and it is also the most dangerous strategy.

The departure of Maureen Chiquet took place after Chanel co worked with Karl Lagerfeld, a long-term co operative designer, to create an environmentally friendly high-end custom garment.

Chanel has always been one of the largest luxury brands in the world, and is also the favorite of Chinese luxury consumers.

In recent years, the growth of the luxury goods industry has slowed down. In the past few months, it has been negatively affected by the decline of tourists and terrorist attacks. In addition, China's economic slowdown and the stock market crash have also seriously affected the purchasing power of Chinese consumers.

Maureen Chiquet has said that for Chanel

Let's not think about how big it can be, but consider how to make it unique.

This may give reasons for Chanel's mistakes in the Chinese market.