Chanel's Restraint On KOL

Facing the current raging fire

And social media, luxury brands.

The principle of brand is increasingly emphasized.

According to the world clothing shoes and hats net, a few days ago, French luxury brand Chanel

Bruno Pavlovsky, chief executive of the accessories department, told foreign media Fashionnetwork that although China's KOL fans are huge, they also have a strong understanding of fans' preferences and views on brands. But what these fans want to see is the true view of KOL, rather than being advertised after a brand is released, so Chanel has not signed any contracts with China KOL, nor will it sign a contract with China KOL.

According to the information disclosed in the industry, the meaning of "contract" should refer to soft content paid for promotion.

That is to say, at present, Chanel is different from other luxury brands, and the way of cooperation with China's KOL is not universal payment promotion in the industry.

This also proves Chanel's restraint on KOL.

Some analysts believe that although Chanel does not pay, most Chinese KOL are still willing to establish cooperation with Chanel, but with the overall change of market environment, KOL and other social media resources become more and more important for luxury brands.

The Financial Times reported earlier that China's key opinion leader, KOL, has been leading the rest of the world and has become the real media carrier.

It is worth noting that the February Oscar's Best Actress Award nominated Meryl Streep Meryl Streep and Chanel dress events also involve the issue of payment.

Karl Lagerfeld stressed at the time that no matter who the other party was, Chanel always refused to pay the invitation star to wear the brand clothes to attend the event to publicize. This is a matter of principle and bottom line.

However, most luxury brands are already embracing digitalization and setting up e-commerce platforms, but Chanel will focus on physical stores and physical activities next year.

Bruno Pavlovsky said that 2018 will be the year of flagship store. It will re open or open 6 new stores, including new shops in New York 57 street, the first flagship store in Seoul, new shops in Brompton Cross in Eastern London, and two new markets in Copenhagen and Abu Dhabi.

Chanel also opened second Japanese flagship stores in Ginza, Tokyo in December 1st.

The most important flagship store will be the St Honor e flagship store in Paris.

Up to now, Chanel has 190 stores in the world.

This month, Chanel also announced that it will build its headquarters building in Paris, with an area of nearly 275 thousand square feet, with 5 floors and two basement buildings. It will be designed by architect Rudy Ricciotti, and is expected to be completed by 2020.

Chanel says an innovative brand action is to improve the workmanship and improve the working environment by bringing together its jeweller Desrues, feather maker Lemari, embroidery workshop Maison Lesage and Atelier Montex, shoe workshop Massaro.

In December 6th, Chanel just released the 2017/18 "Paris Hamburg" Advanced Workshop Series in Hamburg, Germany.

Bruno Pavlovsky believes that every activity is to maximize the influence of the brand, not just for the brand customers, but also for the fans of the brand.

A month ago, Chanel had just held a show in Chengdu. According to Bruno Pavlovsky, the event received 698 million hits on WeChat and micro-blog websites.

He acknowledges that hits can create dreams, but he doesn't seem to agree with clicks.

"Social media topics create dreams for people to have opportunities to see and understand brands, but it doesn't mean that they are all pformed into customers, because there are no 500 million customers in Chanel boutiques.

Chanel is not a mouse click. When people think of a $5000 coat, customer experience is much better than clicking. Now you can even click on everything.

Combining Bruno Pavlovsky's attitude towards e-commerce, its attitude towards social media and KOL is not surprising.

According to Reuters's earlier news, Bruno Pavlovsky said the brand remained a conservative attitude towards the electricity supplier, and the brand's clothing and handbag business did not consider online sales.

He stressed that if every commodity is presented directly to everyone, the luxury will lose its unique feeling, but he does not deny that the company will try more business in the future.

Bruno Pavlovsky also stressed at a fashion conference in Paris that the fundamental reason for the slow development of Chanel and other luxury brands in the electricity supplier is that the best experience of luxury consumption is in boutiques. After all, the icy screen can not convey the brand culture and spirit to consumers.

For Chanel, the most important thing is to serve consumers with the ultimate consumer experience.

He pointed out that, compared to selling goods through e-commerce channels, Chanel hopes that with the help of related technologies, consumers can book products online and try to buy them in brand stores.

He also revealed that Chanel's loyal customers in China will strongly express their reluctance to open their electronic business platform to sell handbags and garments because they will affect the uniqueness of products.

In the global luxury industry is full of uncertainty, the Greater China market is becoming more and more important to Chanel, directly speaking, the impact of Chanel's VIP is increasing.

In 2001, Chanel invited Coco Lee to be the spokesman of the Asian region. As a result, Hongkong's celebrities and Qianjin were very unhappy. They jointly protested against Chanel, and launched a strike action.

As a result, Coco Lee ended his cooperation in a season.

In April 2015, in order to stimulate revenue growth, Chanel became the first luxury brand to cut prices in China.

And set off a storm of luxury brands.

In order to attract more consumers, Chanel has been running shows in China for two consecutive years. Last year, the brand released the Beijing Paris "Rome" advanced handicraft series.

Second times this month, Chengdu was chosen as the show venue.

At present, Chanel group is mainly owned by Alain Wertheimer and Gerard Wertheimer, and is not yet listed.

According to Bloomberg estimates, the Wertheimer brothers two paid dividends up to $3 billion 400 million last year, and their total wealth totaled about $22 billion 400 million.

According to the financial report submitted by Chanel to the business department of Amsterdam and Holland last year, data show that Chanel sales fell 9% to 5 billion 670 million US dollars over the 2015 fiscal year, operating profit fell 20% to 1 billion 280 million US dollars, net profit fell 35% to 874 million US dollars a year, and the profit margin was 15.4%, a sharp decline compared with 21.5% in 2015.

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Surprisingly, Chanel is actually one of the first luxury brands that have an open attitude towards e-commerce providers.

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 of the same year, Chanel officially launched the online sales of eyewear 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.

As for Chanel's erratic attitude towards business operators, some people in the industry think that, as one of the largest and most mysterious luxury brands in the world, the marketing objective of Chanel is not to make the brand bigger, but to consider how to make it unique.

Last January, Chanel global CEO Maureen Chiquet left the company with a disagreement, which may be related to the possible problems of the group's e-commerce strategy.

An analysis commented that Chanel has 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.

Now it seems that the gradual tightening of the electricity supplier strategy may be a remedy for this.

With the rapid development of the electricity supplier industry, many luxury brands and groups have been unable to ignore this big cake, and have begun to set foot in the electricity supplier market.

French luxury brand C e line has also been away from the Internet and social media. They do not want to become the popular Masstiege brand nowadays. Instead, they want to stick to the brand spirit of low key and focus. They think that too much exposure and easy access to online stores can easily reduce the brand image.

But now C e line has undergone a 180 degree shift and the brand is coming to a turning point.

In April of this year, C e line hired the former Italy menswear brand Berluti executive vice president, S e verine Merle, to replace Marco Gobbetti as C C line's new CEO.

She has brought new ideas to C e line, claiming that it will pform the brand to digital upgrading, and the brand e-commerce platform will be launched at the end of the year.

In November 4th, C e line opened the service number on WeChat platform. Last week, the electronic platform was officially launched online to sell handbags, and a big step has been made on the digital road.

In June 6th this year, Chanel's biggest competitor, LVMH group, is continuing to accelerate the pace of e-commerce, launching its two year multi brand e-commerce platform, 24S vres.com.

In July 20th, LVMH group's core luxury brand LV officially launched online shopping service on the official website of China. Consumers can buy all the products on the platform, which is the only official e-commerce platform of LV in China.

Luxury brand Gucci launched its e-commerce service in China's official website in July 3rd.

According to the fashion headline data, Gucci's electricity sales in the third quarter registered strong growth of 3 figures, while total sales rose 49.4% to 1 billion 550 million euros.

In December 8th, Gucci launched WeChat small program, including gift card sales function, test water WeChat small program electricity supplier.

And Hermes, which once resisted the electricity supplier, began to embrace digitalization. In October 23rd, it opened a WeChat Limited shop in the WeChat public, offering a series of smart watches and shoes products with Apple cooperation.

Some analysts pointed out that Hermes's first trial of water WeChat electric business is conducive to the further pformation of the brand to digitalization.

According to the latest survey by Boston consulting agency, the proportion of e-commerce business in the global luxury market is expected to reach 12% by 2020, and there is still much room for development.

Sanford C. Bernstein, a securities brokerage company, expects that luxury electric business will grow at a rate of two times the overall luxury industry, and online luxury pactions will reach 27 billion euros by 2019.

In fact, most luxury brands who have positive attitudes towards electricity providers share the same attitude towards KOL strategy.

Last year, Dior, the first to sell WeChat on the 7th night of the year, also frequently worked with star KOL to announce the controversial brand ambassador.

LV has also launched a special series from the beginning of this year to fashion bloggers and KOL.

Although the first tier luxury brands are more cautious about brand image, it is difficult to keep up with the digital trend this year.

From the point of time, the rhythm of luxury brand digitalization is accelerating. An electricity supplier war and a social influence war are brewing.

Can Chanel remain brand specific?

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