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CHANEL Presented by: Jessica Bercier-History and Competitors Liu Paisha-Sasha-Industrial Analysis Liu Zheng-Leo-Globalization Shu Yue-Alice-SWOT Analysis

History 

Gabrielle “Coco” Chanel

Started in 1909

Known for simple and classic looks

Chanel No. 5 

Introduced in 1922

Still their most successful perfume today, nearly 86 years later

Coco Chanel 

Connection with the Germans

Fashion Oscar in 1957

Even after her death in 1971, she lives on as an icon to many in the fashion industry today.

Chanel, post Coco

Industry Analysis

Global Issue ď Ź

The profit shrink ,especial in cosmetics Reason

ď Ź

Disorder competition in international market Current Situation France & US France : profit down from 2007 to now US: 0.8% growth in 2007 Worldwide *cosmetics sales increase just 3.6% in 2006, not a great change in 2007

Risks 

High Duty In China, the customs added 60% to the cost of goods

Different Concepts Compare western countries and China on perfume preference

Fake Goods Difficult to distinguish In every corner, especially in developing countries

Future trend ď Ź

Pay more attention to emerging markets Some brands are just in developed cities, not yet found in small cities, or developing countries

ď Ź

Reducing the price---- cost of good Currently, the cost is too high for average citizens who want to buy it

ď Ź

Expand the man cosmetics market continually Currently, not universal like woman cosmetics

Chanel Competitors

Gucci 

Based in the Netherlands

Specializes in clothing, cosmetics, shoes

Strong brand identity


Based in Milan, Italy

Fashion leader

Known for its runway shows


Louis Vuitton

Based in Paris, France

One of the oldest fashion company in the world

SWOT Chanel Strength

Cloth Fashion  haute couture luxury goods  perfume  jewelry  watches  beauty products  eyeglasses

Chanel production is known for its quality. Some of the cloth is exclusively owned by Chanel. Embroidery Tweed Fabric

Button Decorative Chain

Cloth cont. Cut Lining


Camellia and Chanel Logo

Camellia is an important design factor in Chanel’s design.

Chanel’s logo is two C together which has become one of the most recognized labels in the world.

Karl Lagerfeld

The Chanel Chief Designer who is leading Chanel to another peak in its fashion development.

Chanel Perfume No5, No19, COCO, Cristall , ALLURE , CHANCE, and N°22, CUIR DE RUSSIE, GARDENIA, BOIS DES ILES, UNE FLEUR DE CHANEL and Chanel male perfume: Allure .

Chanel Weakness 

Chanel high price

Chanel limited productions

Chanel beauty productions

Chanel Opportunity 

Expand business in emerging market more rapidly. Mobile art exhibition in seven cities in China. The first is in Hong Kong. Opening of its largest global franchised store in Tokyo Chanel 2008/2009 winter season

Chanel Threat ď Ź

Chanel counterfeits and illegal use of its double-C logo.

ď Ź

Chanel will face a strong competition in China market and meet a lot of difficulties.

Short-term 

  

Find ways to lower the prices of products in emerging markets Improve its cosmetic line Develop a men’s line of facial products Allocate the investment in expanding emerging market reasonably Pay attention to the fakes and may adopt technology to limit them

Long- term Recommendations 

A. More focus on younger generation

More ideas in clothing design

More research in African market

Conclusion 

From history to nowadays

Faces opportunity and challenges

Future development

Chanel s3 f07