CHANEL Focuses On Brand Development And Product Matrix.

CHANEL has issued a formal statement saying that its brand name is written in all capitalized CHANEL, which is used in the whole line of business including advanced customization, clothing, accessories, perfume and so on. Meanwhile, the name of the legendary designer of the founder is also capitalized.

In the statement, the brand sincerely requests all editors, advertisers and other trades who may use the trademark to use the correct method, otherwise CHANEL will have the right to pursue its legal liability. The tone is harsh and unusual. It shows that CHANEL is working hard to sort out and sharpen the brand image and form a unity.

Or will enter the men's wear market.

CHANEL's "redevelopment" for future development is also reflected in the development and extension of product lines.

The most recent "CHANEL-Pharrell" series has been launched exclusively in Seoul, South Korea in March 28th, and will be on sale at the designated CHANEL boutique in April 4th.

Street style highlights of the "CHANEL-Pharrell" series advertising map. Photo source /CHANEL official website screenshots

CHANEL highlights the highlights of the city capsule series "CHANEL-Pharrell", CO launched by Pharrell and Williams, a long-term brand ambassador, including yellow robes, super size accessories, bucket hat, CHANEL Pharrell diamond necklace and hand painted graffiti sneakers and slippers. The most noteworthy "exploding point" in this series is men's clothing elements. CHANEL has never launched men's clothing products before, and some industry analysts say that this may be the signal that CHANEL wants to enter the men's market at the moment of "his economy".

"Old Buddha's age" moves frequently.

Since the death of Karl Lagerfeld in February 2019, CHANEL has constantly adjusted its product matrix and brand strategy.

In addition to the "CHANEL-Pharrell" series, not long ago, CHANEL officially announced the news of the new men's make-up series, and presented three star products: the foundation fluid, the eyebrow pencil and the colorless lipstick. The three stars are all basic products, while the exterior design is mainly for "business gentleman style" to locate the city grade men.

In terms of brand operation, it continues to unload the "high cold" label, and has a lot of action in the topic of "flash shop" and "brand club". In April alone, CHANEL launched "COCO CRUSH Limited shop" and "COCO Flash CLUB Theme Store" in Macao and Guangzhou, attracting many fans' attention.

Card competition "growth crisis" to be solved

CHANEL constantly resorted to new programmes to adjust product and brand strategy, which is closely related to its severe market competition.

In June 2018, CHANEL released its first financial report for the first time. Data from this report show that CHANEL2017 earned $9 billion 620 million, an increase of 11.5% over 2016. In 2017, CHANEL net profit was $1 billion 790 million, an increase of 18.6% over the same period last year. In addition, the disclosure also let the outside see the huge cash reserve of CHANEL - $2 billion 200 million. In terms of total body size, CHANEL's performance data in the current period is ahead of Gucci and Hermes. But in terms of profitability, the operating profit margin of CHANEL2017 is about 30%, and the operating profit margin of Gucci2017 is about 46.9%.

Market analysts believe that the main reason for this partial performance gap is that Gucci actively embraced the channels of Internet marketing and e-commerce, while CHANEL's efforts in this sector are lagging behind. For example, in recent two years, the street trend has become a big brand "new favorite". Louis Vuitton and Supreme have made great efforts to cooperate. CHANEL's attitude towards "brand joint name" has been relatively cold. Until the latest "CHANEL-Pharrell" series, we can see the layout of publicity and promotion. In the middle of last year, the action of "CHANEL on the pitch" was once cited by many fashion industry people as a case. This shows that they are aiming at young people and close to the "millennial generation", but they are still "on the move" to some of the major electricity suppliers in China. It seems that they are still not determined to "expand online shopping".