Chanel is a French Luxury fashion house founded in 1910 by Gabrielle Chanel. The brand is known for their timeless elegance, innovative ideas and destinctive designs. Gabrielle Chanel forever revolutionised women’s fashion with the introduction of comfortable, practical clothing that was still luxurious and sophisticated.
1883 Birth of Gabrielle Chanel
1912 Opening of first Chanel Boutique
1924 Launch of first makeup collection
1954 Reopening of Couture Houses
1983 Karl Lagerfeld as artistic director
2019 Virginie Viard artistic director
1910 Opening of Chanel Modes
1921 Launch of Chanel No5
1939 Closing of 4 Couture Houses
1971 Death of Gabrielle Chanel
2019 death of Karl Lagerfeld
SWOT STRENGTHS WEAKNESSES
Impeccable reputation and brand heritage
Controlled distribution channels
Diverse product range
Distinctive designs
High celebrity endorsments
high price points
heavy reliance on core fashion categories lacks online presence in comparison to competitors limited distribution channels
OPPORTUNITIES THREATS
exploration of new product sectors
use of influencers and social media expansion into emerging markets
offer more customized services
improve sustainability ethos
(Chanel, 2013)
effects from global economy on revenue
Popularity of counterfeiting
digital disruption and online scrutiny
intense competition from other luxury fashion brands
Market Research
Chanel Brand Awareness, usage, popularity and buss in the United States (Statista, May 2024)
Chanel Brand Awareness, usage, popularity and buss in the United Kingdom (Statista, December 2023)
8. CHANNEL
Chanel Boutiques offer unique experiences Partnership with Farfetchworking on augmented reality
INNOVATION ANALYSIS
10. CUSTOMER ENGAGEMENT
long term research programme to understand skin and beauty needs for women client care services online Book an appointment services
9. BRAND
Fondation Chanel distinctive style and brand logo
Chanel’s Podcast with leading curators discussing todays culture
5. PRODUCT PERFORMANCE
Taking initiative in supply chain to ensure full traceability
Terracycle scheme for recycling fragrange & beauty
2. NETWORK
Financing academic research projects
We work with our suppliers to produce new, environmentally friendly creations’ Seven year collaboration with experts in the field
3. STRUCTURE
Values are grounded in creating the conditions to perform at their best 100 day onboarding plan Imagine Chanel programs gender equality and fair employment policies
PROFIT MODEL
Chanel follow an outdated model of low volume high prices which limits their revenue
PRODUCT SYSTEM
Chanel lacks product recommendations and use of algorithms
SERVICE
Chanel lacks the personalisation element of shopping and expects customers to go to them
CHANNEL
Limited distribution channels which limits customer reach
BRAND
Lack of online presence in our increasingly digital age
CUSTOMER ENGAGEMENT
AREAS OF IMPROVEMENT
Lack of social media usage so lack of worldwide customer feedback (Chanel, 2012)
PROFIT MODEL
AREAS OF INNOVATION
Could be improved by offering subscriptions on beauty products PRODUCT SYSTEM
Recommend products to customers when making a purchase using AI algorithms that they would be interested in SERVICE
Use of AI to allow customers to try products on virtually CHANNEL
Increase in distribution channels for market expansion BRAND
Expand consumer base through social media engagement CUSTOMER ENGAGEMENT
Use of social media platforms to engage a younger demographic (Chanel, 2013)
Augmented Reality Try on experience
Augmented Reality
experience in stores or online which allows customers to virtually try on products
Enhances social media presence
Enhance customer engagement
Bring new customers into the brand Unique experience
Create AI mirrors in store or in various locations as pop-up kiosks Mobile app developmentcustomers can scan QR codes in store and the app displays how they look on them
AI algorithms to analyse customer preferences and provide recommendations
Promote through social media through #ChanelMyStyle so customers can share their individual experiences
(Chanel, 2016)
Circular Fashion Programme
Start a Circular Fashion
Programme with pre owned Chanel Items, which are quality checked.
Create a collection of restored, refurbished pieces
Digital platform where customers can track items journey
Partner with artisians to upcycle new uniwue peices
Reduce counterfeiting issues as people are less likely to buy
Promotes sustainable practices
Increases social media presence
Promote on social media (eg. videos of item transformation)
Exclusive events at Chanel boutiques
Charity runway of one-of-akind upcycled pieces
(Chanel, 2016)
IDEA 3
Customisable Fragrance Experience
Create a new experience online and in store that allows customers to pick their own notes in their fragrance.
Create fragrance bars in Chanel Boutiques
Trained Chanel staff to help choose notes
Interactive online tool to mix different blends and personalise bottles
Alligns with brand heritage (Chanel NO5)
Offers a personalised, one of a kind experience Allows customers individuality and what they exactly want
(Chanel, 2016)
Promotion on social media with #MyChanelBlend
Offer a monthly subscription service so customers can receive a monthly sample of different blends
(Chanel, 2015)
Summary
Chanel’s iconic brand heritage allows the Brands to stay distinctive and recognisable
Lots of work with experts to ensure highest quality of products possible
Sustainability efforts from the brand have improved but their is still more they could do Their social media presence lacks in comparison to competitors
Lots of opportunities for market expansion into other demographics
Opportunities for unique and personalised experiences to give customers that luxury feel
Overall good efforts of improvement from the brand but need to focus on social media presence, customer engagement, market expansion and promoting sustainable practices.
1000 Logos - The Famous logos and Popular company logos in the World. [Online] 1000s Logos. Available from : https://1000logos.net/download-image/ [Accessed 05/01/25].
Add a heading References
Chanel (2017) Chanel Cruise Campaign 2017.
Chanel (2013a) Chanel Eyewear SS13.
Chanel (2012) Chanel SS12 Campaign.
Chanel (2024a) Chanel Try on. [Online] Chanel. Available from : https://www.chanel.com/gb/fine-jewellery/virtual-try-on/ [Accessed 06/01/25].
Chanel (2023a) CHANEL TRY ON - Virtual Makeup. [Online] Chanel. Available from : https://www.chanel.com/gb/makeup/virtual-makeup-try-on/ [Accessed 06/01/25].
Chanel Fondation Chanel. [Online] Chanel.com. Available from : https://www.chanel.com/gb/fondation-chanel/ [Accessed 08/01/25].
Chanel (2016a) Kristen Stewart Chanel Pre Fall.
Chanel (2013b) Marilyn Monroe Chanel No5 AW25.
Chanel (2018) Report To Society.
Chanel (2024b) Season 4 of CHANEL Connects, the Arts and Culture Podcast | CHANEL. [Online] Chanel.com. Available from : https://www.chanel.com/gb/chanel-connects/season-4/ [Accessed 08/01/25]
Chanel (2015) SS15 Campaign.
Chanel (2024c) Sustainability | Chanel. [Online] Chanel.com. Available from : https://www.chanel.com/gb/sustainability/ [Accessed 09/01/25].
Chanel (2023b) The History of the House of CHANEL. [Online] CHANEL. Available from : https://www.chanel.com/gb/about-chanel/the-history/ [Accessed 07/01/25].
Chanel (2016b) Willow Smith Chanel Eyewear AW16.
d’Acquarone, L. (2016) Chanel celebrates its iconic flower – The CamelliaThe Glass Magazine. [Online] theglassmagazine.com. Available from : https://theglassmagazine.com/chanel-celebrates-its-iconic-flower-thecamellia/ [Accessed 10/01/25].
Kunst, A. (2024) Chanel Brand Profile U.S. 2022. [Online] Statista. Available from : https://www.statista.com/forecasts/1351887/chanel-luxury-fashionbrand-profile-in-the-united-states [Accessed 06/01/25]
.
Statista (2023) Chanel brand profile UK 2022. [Online] Statista. Available from : https://www.statista.com/forecasts/1352008/chanel-luxury-fashionbrand-profile-in-the-uk [Accessed 06/01/25].
V&A (2023) What Makes Chanel so iconic? [Online] Victoria and Albert Museum. Available from : https://www.vam.ac.uk/articles/what-makeschanel-so-iconic?
