Chanel Began To Lose Power And Felt Threatened.

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

At the beginning of last year, Chanel cut 20% in the Chinese market. Taking the strategy of global market parity, the whole luxury industry has been shocked.

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.

Chanel is not a listed company. Its performance has always been mysterious. Last year, according to Bloomberg news, its annual profit in 2014 surged 38%, winning all luxury goods giants, but now, from its 2015 performance decline, Chanel is beginning to face the trouble of global luxury demand slowdown.

Chanel behind the global price adjustment is to crack down on the purchasing market. Chanel fashion President Bruno Pavlovsky confirmed this in an interview with Reuters in Havana, Cuba in early May.

Bruno Pavlovsky said that despite the success of curbing gray market sales, Chanel's growth will slow down this year, but he declined to give specific figures.

Chanel, which is owned by mystical millionaire Alain Wertheimer and Gerard Wertheimer, is one of the world's largest luxury brands, and has been under the banner of LVMH group.

Fierce competition is going on.

For last year's business, Chanel declined to disclose more business details and comments. Its competitor LV also did not issue brand operation data separately. Industry sources revealed that LV had sales of about 8 billion euros last year.

According to the news, last year, Chanel's cosmetics and perfume business income recorded 2 billion 600 million euros, or about 2 billion 910 million US dollars, down 21% compared with 2014.

In order to promote the sale of perfume products, Chanel launched the new version of the classic No.5 perfume released in 1921 this month, No. 5 L'eau perfume, and LV also launched its first perfume series next month.

Perfume market, but in order to maintain independence and individuality, the LV perfume launched is only sold in LV stores.

According to industry analysis, Chanel launched the No. 5 L'eau perfume aims to compete with L'OREAL group's brand Lancome's La Vie EST Belle and LVMH group's brand Dior J'adore perfume.

In January of this year, Chanel global CEO Maureen Chiquet quit.

The reason is that she has a disagreement with the company.

At present, Chanel's daily operation and management work is temporarily taken over by the chairman Alain Wertheimer. Up to now, no new CEO has yet been found.

Maureen Chiquet has been in the company for CEO for nine years. It is one of the few women who handle large luxury brands. Some people in the industry have pointed out that the departure of Maureen Chiquet has caused a concussion to the Chanel management team, which will bring serious challenges to the development of Chanel brand.

Exane BNP Paribas analyst Luca Solca said it was not surprising that Gap Chiquet, who worked at Gap and L'OREAL, left a mistake in the Chinese market.

Maureen Chiquet has said that for Chanel's marketing strategy, we should not think about how big it can be, but consider how to make it unique.

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

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

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

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