Chanel Will Turn Back And Focus On Physical Stores.

After a continuous test of the electricity supplier,

brand

Is internal going further?

There may be differences, or even backwards, to focus on the retail of physical stores.

According to the world clothing shoes and hat net, Chanel fashion department chief executive Bruno Pavlovsky recently said in an interview that he was still cautious about the electricity supplier. He stressed: "the best experience of Chanel is in the boutique. We are not sure whether consumers can fully understand us through the cold ice electronic screen. For Chanel, the most important thing is to serve our customers with the consumer experience of boutique shops."

Contrary to the fact that other luxury brands have slowed down or stopped increasing physical store practices, Chanel continues to expand its physical stores.

It is reported that in 2018, Chanel will open a 600 square meter new shop in the suburb street of Saint orange, Paris. At the same time, shops on the 57 block in New York are also being renovated, and new stores will also be opened in Seoul and Tokyo.

According to the Amsterdam stock exchange, the profits and sales of Chanel declined sharply in 2015 due to the downturn in global luxury consumption, operating profit fell 23% to 1 billion 600 million dollars, and total revenue fell 17% to 6 billion 240 million dollars.

At present, Chanel is held by the mysterious millionaire Alain Wertheimer and Gerard Wertheimer, and has been competing fiercely with LV and Hermes. Its every move has aroused widespread concern in the industry.

In fact, Chanel's attitude towards the electricity supplier is also twists and turns.

As early as 2014, Bruno Pavlovsky asserted that the brand would never make an electronic business.

As to why Chanel does not carry out online sales of handbags and garments, he responded, "fashion needs people to see, touch and understand."

It is hoped that consumers can go to boutiques, and only boutiques can provide consumers with corresponding services.

However, a year later, his attitude reversed. In 2015, he announced that Chanel was going all the way to e-commerce. The reason was that in the face of the rapidly growing market of e-commerce, it had to re choose its potential business opportunities.

What follows is that Chanel has carried out almost crazy tests on the electricity supplier.

In April 2015, Chanel and Net-a-porter co operated the first electricity supplier project to set up a sales area for its high-quality jewelry Coco Crush.

In November 2015, the Chanel Fashion Department officially entered the electricity business for the first time, and officially opened the online sales business of glasses products in the United States.

In order to further expand the electricity business, in early 2016, Chanel sold its products in the European website to the hat shop Maison Michel.

In the second half of last year, Chanel began selling the latest perfume at WeChat.

Chanel subsidiary Paraffection's three handicraft shops have also gradually expanded its business, including glove workshop Causse has opened online business, Scotland knitting brand Barrie Knitwear and France high-end underwear brand Eres also launched online sales this year.

Bruno Pavlovsky has said that the e-commerce platform is an effective way for customers to understand the new product listing. Customers need to quickly understand the latest product trends, and this service will ultimately benefit the brand.

When asked whether the Chanel group is going to provide a single or intensive product under the multiple classification structure, Bruno Pavlovsky said at that time that the company was testing the scheme, and formally launched the global electricity supplier network in 2016. However, a year passed, and the electronic commerce platform still had no news. There are many indications that the pace of Chanel's business is slowing down.

Some analysts believe that so far, Chanel has already tested jewelry, glasses and cosmetic products on some electronic business platforms, but has not yet pushed the core business handbags and garment business as brand soul to the electricity supplier.

Now, Chanel's attitude towards the electricity supplier tends to be conservative. This means that in the short term, Chanel is unlikely to push the core business including garment accessories to the electricity supplier channel, and the strategy of entering the electricity supplier will be limited to some parts of the business, such as beauty makeup.

Price reduction and development of electricity suppliers are the two biggest moves of Chanel brand strategy in the past 2 years.

In early 2015, Chanel announced a 20% reduction in the prices of some commodities in the mainland of China and a 20% increase in European commodity prices. With the rapid growth of luxury goods industry and the change of global consumer habits, the cold attitude towards Internet Chanel has changed 180 degrees since then.

Why Chanel's attitude towards the electricity supplier will be repeated? Some analysts say that Chanel is one of the largest and most mysterious luxury brands in the world. The marketing strategy for this luxury brand is not to make it bigger. The group should consider how to make it unique.

In January of last year, Chanel global CEO Maureen Chiquet and the company disagreed and left. This may be related to whether the group's business strategy has problems.

An analysis commented that Chanel had made a mistake in the Chinese market. As the first luxury brand in the Chinese market to adopt price cuts, it seems that the top luxury brands have been overexposed, and the radical business strategy will further exacerbate the problem.

However, at present, the electricity supplier is already a very important channel for luxury sales. The report predicts that the online luxury goods sales share will double to 12% in 2020 and three times to 18% in 2025, making the electricity supplier the third largest luxury market in the world after China and the United States.

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It is noteworthy that Chanel's biggest competitor, LVMH group, continues to accelerate the pace of e-commerce.

In March, LVMH announced that it plans to build a large business platform itself. Besides its own brand, it will also sell some designer brands, similar to the French version of Net-a-Porter.

It is reported that the electronic business platform will enter the testing and adjustment stage in 4 and May, and it will be launched in July.

Moreover, the pace of LVMH group's digitalization is becoming more and more daring. The C line, the most exclusive Internet brand, has also indicated that it will enter the electricity supplier. The brand new CEO said that the online shopping platform will be launched at the end of the year.

However, there are still a handful of skeptics about the Internet. Among them, Johann Rupert, the chairman of the group, has completed the merger of Net-a-Porter group and Yoox group in order to create a brand new fashion business tycoon. The merger will bring 1 billion 300 million euro income to the company. Even so, he still doubts the role of the electricity supplier in the luxury world.

He thinks that the electricity supplier is more like a service facility for customers. Besides, it has no other role. The electricity supplier represents only 1% of the turnover for the group. Frankly speaking, this is not a great contribution to any luxury company.

In addition, he added that it is difficult to link the "electricity supplier" with "luxury goods".

Trust is still a big problem for electric providers, because fake commodities are rampant nowadays.

Donald Marchand, a professor of strategic execution and information management at IMD, Lausanne business school, Switzerland, said earlier that luxury brands have a long way to go to build business models based on strong ties.

Most brands now rely on advertising and public relations to promote their products. This promotes the sale of "task oriented" stores, and brands do not have a deep understanding of their consumers.

But entering the electricity supplier is no longer the practice. This is probably the reason why Chanel is still vigilant.

Dior, who has long been away from the electricity supplier, became the first luxury brand to sell handbags on WeChat platform last year.

Earlier, analysts said that Chanel started selling the perfume products with core profits on WeChat platform, so selling handbags on WeChat platform is just around the corner. But now it seems that Chanel is far from being able to maintain its uniqueness and scarcity.

More interesting reports, please pay attention to the world clothing shoes and hats net.