 |
| Image credit : Handbagsforalady |
2022 gave Chanel somewhat surprising results in respect of sales, despite most of the world being in lockdown, revenue jumped more than 50% to $15 billion USD. What makes this news more interesting is that this sales increase is from its direct to consumer sales. Meaning the in-person, in-store sales of their premium products such as handbags and haute couture. Indeed, the products that one would expect to see increase during the pandemic, fragrances, makeup, eyewear, all of which can be ordered online, have been relatively stagnant.
As a result of this, Chanel plans to open dedicated, exclusive private stores for its top clients. There is little additional news on this other than their CEO Phillipe Bondiax making vague comments on safety, and making a statement saying "We're going to invest in very protected boutiques to service clients in a very exclusive way." The upshot of which being that as result of their success they feel separate, private boutiques for top customers are worthwhile.
We feel this is a chicken-and-egg situation. The increase in Chanel sales is not from a sudden desire to own Chanel handbags, nor is it a result of them produce revolutionary designs. Frankly, Chanel is stale, and creatively bankrupt. It has been for some time, but since Lagerfeld passed away, this has been amplified. the reason for the increase is an announced 60% increase in classic bag prices in December 2021. People wanted to buy the handbags before they became too expensive, that's all there is to it.
Chanel senior people however seem to believe the increase is from a sudden new interest in the brand, whereas it's merely those who wanted to own a classic bag getting it sooner rather than later. Unfortunately for Chanel, there is a finite supply of customers, once everyone has classic bags, unless they make something genuinely original, we doubt there is as much of a demand for private boutiques as they think there is.
Posts
No comments:
Post a Comment