Portfolio_Zimo Chen

PORTFOLIO |Zimo Chen| BRAND Extension

PORTFOLIO |Zimo Chen| BRAND Extension

Chanel Brand Extension Zimo Chen’s

Of Chanel

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

PORTFOLIO |Zimo Chen| BRAND Extension

-Brand history and financial report -Business model canvas and brand identity prism -Competitor analysis

PORTFOLIO |Zimo Chen| BRAND Extension

-Marketing mix-4P -Ideate -Test

-Prototype -Conclusion -Reference -Appendix

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Brand history and financial report

Brand History & Financial Report

Start a milliner business open hat shops

Re-open after World War II, little black jacket

Joined Chanel

Re-open 1954

Karl Lagerfeld 1983

Founded 1910 1924 Perfume

1971 Coco Chanel died

Joined after Karl Lagerfeld died

Le Boy Bag 2011 2005 2.55 Bag

No 5 Fragrance & Makeup

Interlocking CCs

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Virginie Viard 2020 2017 Gabrielle Bag

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Brand history and financial report

Brand History & Financial Report has been a successful year for Chanel, with strong 2018growth across all product lines and regions. Sales of $11.1 billion, up 10.5% compared to2017. 2019 results show strong growth, confirming the strength of the Chanel brand and the company’s commitment to sustainable, long-term value creation.

evenues of $12.273 billion, up 13.0% compared to R2018 on a comparable basis at constant currency. profit of $3,496 million, up 16.6% compared Oto perating 2018.2020 results demonstrate resilient

performance in the face of the Covid-19 pandemic, underlining the strength of the Chanel brand.Positive net cash balance at the end of the year, reflecting Chanel’s financial discipline and trading recovery in the second half.2021 financial results driven by strong demand across all product lines from its local client base, underlining the desirability of Chanel’s creations.

Revenue

Profit US$5,000.00

US$16,000

US$3,750.00

US$12,000

US$2,500.00

US$8,000

US$4,000

US$1,250.00

US$0

US$0.00

2018

evenues of $15.6 billion, up 49.6% versus 2020 and R22.9% versus 2019 on a comparable basis at constant currency.

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2019

2020

2021

2018

2019

2020

2021

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Business model canvas and brand identity prism

Business model canvas & brand identity prism

Designed for: Chanel

Date: 20th July 2022

Key partners

Key activities

Key propositions

Customer relationships

Customer segments

material factory PR company

fashion show

simple comfortable pure elegance free trendiness poneer

CRM VIP event

Fashionable and confident women with high income

Key resources

Channels

textile design team branding

Retail official website

age（3545）

Cost

Revenue streams

Rental Employee Operation

Retail store 3rd party platform

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Designed by: Zimo Chen

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Business model canvas and brand identity prism

Business model canvas PHYSIQUE

PERSONALITY

Distinct monochrome Logo Little black dress No5 Perfume Handbags with logo buckle

Mature Stylish Authentic understated

RELATIONSHIP

CULTURE Parisian look and culture which continues on from coco Channels legacy.The brand still uses the same stylish and elegant looks.

High quality Personalized Customer experienced limited edition releases trustworthy

REFLECTION

SELF IMAGE

Height of fashion iconic looks smart

Confident look and feel fashionable unique .

INTERNALISATION

EXTERNALISATION

CONSTRUCTED SOURCE

CONTRUCTED RECEIVER

& brand identity prism -05-

Dior

S: 1. Strong product capability 2. Global market 3. Many consumers W: 1. Increased cost 2. Celebrity endorsement may lead to brand crisis 3. Small consumer base O: 1. Vast development of emerging markets 2.

Abundant resources 3. Activities T: 1. Fierce competition 2. Price competition 3. Many imitations

Celine

Hermes

Competitor analysis

Louis Vuitton

S: 1. technology 2. fashion trend 3. innovation W: 1. expensive 2. quality problems 3. difficult to clean O: 1. Larger target group 2. Advertising 3. Urban development of retailers became important T: 1. Other luxury goods share the market with LV 2.

Fierce competition 3. Differences in target consumers

Competitor analysis

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

S: 1. fashion trend 2. innovation 3. youthfulness W: 1. celebrity endorsement may lead to brand crisis 2. limited consumer group O: 1. emerging markets 2. events 3. advertising T: 1. Fierce competition 2. Few target consumers

S: 1. fashion trend 2. innovation 3. unique product W: 1. Celebrity endorsement may lead to brand crisis 2. quality issues O: 1. emerging markets 2. advertising 3. events T: 1. Fierce competition 2. Small consumer base

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Competitor analysis

Prestige price

Exclusivity

Mass market

Affordability

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Competitor analysis

Competitor analysis Competitor analysis

Brand

LouisVuitton

Dior

Celine

Hermes

Logo

Founded in

France 1854

France 1947

France 1945

France 1837

Price （USD)

Product

Place

Digitalization

Haute couture RTW ACC FTW Others

Offline：flagship stores，retail stores Online：official website，we-chat， mini programme

LV game Hero skins at games Virtual Shoes

Haute couture RTW ACC FTW Others

Virtual Shoes Offline：flagship Virtual sunglasses stores，retail stores Virtual Beauty Online：official VR Glasses website，we-chat， Meta-universe fashion show mini programme

1200-5000

Haute couture RTW ACC FTW

Offline：flagship stores，retail stores Online：official website，we-chat， mini programme

/

4000-370000

Haute couture RTW ACC FTW Others

Offline：flagship stores，retail stores

Virtual bag Virtual silk scarf

1300-8000

3700-7000

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PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Marketing Mix-4P

RTW Jackets

Haute Couture

Dresses Ready to wear Blouses&Tops High Jewellery

Fine Jewellery Cardigans&Sweaters

Watches

Eyewear Skirts

Fragrance

Makeup

Skincare Trousers&Shorts Outerwear

Marketing Mix-4P:Product -08-

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Marketing Mix-4P

Simplicity Vintage

Comfort Independent

Feminine boldness Classy but stylish Elegance

Marketing Mix-4P -09-

Product

Brand collage

Marketing Mix-4P

Marketing Mix-4p

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Marketing Mix-4P

Price CHANEL Haute Couture 10,000 to 60,000 Ready to wear 1000 to 50,000

High Jewellery 1500-14000

Watches 5100-49000

Fragrance 70-420

Shoes 900-1600

Fine Jewellery 850-3000

Eyewear 330-1500

Makeup 50-200

Skincare 70-400

Bags 1200-10000

All currency in USD

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PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Marketing Mix-4P

Marketing Mix-4P:Place Official website

Retailer wordwild -11-

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Marketing Mix-4P

Marketing Mix-4P

Marketing Mix-4P:Promotion Advertising

Personal selling

Events and experiences

Personal selling offers several advantages over other forms of promotion. However is more expensive than other tools of promotion. Chanel provides customers with excellently trained customer service. Their stuff sells assistants provide all kind of help and information for each customer.

To help them choose the right products for them.

Relationship selling is a sale practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnership.

A Chanel personnel takes really good care of their customers. They listen and provide all information that customers is looking for, most of the time they create the relationship which will last for a long time. After every purchase client will receive a “thank you” via email, and become a member of Chanel. They will also remember of their customer’s birthdays. They make sure to make every single customer experience special.

PR and publicity

Chanel is one of the most recognizable luxury brands in the world. Customers feel privileged to be able to be a part of “Chanel family.” Usually, it is never one-time purchase, because of the good quality of the luxury products most of the customers created those long-term relationships and are loyal to the brand. They come back every season to look for something “ what they have to have”- the new trend.

Customer relationship management is the ultimate goal of a new trend in marketing that focuses on understanding customers as individuals instead of as part of a group. Chanel does not offer sales. In contrast to a lot of other designers, it is impossible to get Chanel products on sales. A lot of their products are timeless and have been around for decades.

However, Chanel is also making sure to not disappoint the new generation customers and to create a variation of products to satisfy the wider group of fashion lovers. Customers are able to try new perfumes of cosmetic by receiving little samples of those products.

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PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Ideate

Ideate Chanel digitalization ideates: Virtual e-commerce Omni-channel Vintage function Social media platform more interactive

Selfridges resale ‘Reselfridges

Vintage e-commerce sell Chanel

Burberry omni-channel store at Shenzhen

Dior virtual e-commerce -13-

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Test

Test Test

81% Agree

81% interviewees agree the upgraded Chanel e-commerce

Virtual e-commerce 36%

Omni channel 30% Second-hand 7%

Primary research: 104 questionnaires, and my interviewee profiles are shown as the collage.

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Social media 27% 36% interviewees support the virtual ecommerce, and 30% interviewees support omni-channel

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Test

Test Test

Secondary research: From Ladymax, Business of Fashion,WWD According to Ladymax, Chanel is gradually opening up its e-commerce services in order to preserve its "scarcity". 2018 saw Chanel gradually shift its strategic focus to digital retailing, launching its first digital experiment with Farfetch at its flagship shop on rue Cambon in Paris, and creating a Chanel App that allows consumers to browse the brand's collections on the app and reserve their favorite items for pre-booking. In 2019, Chanel's most profitable beauty business even entered Tmall in one fell swoop to open an official flagship shop, sparking widespread interest and seen as another bold breakthrough for the brand in e-commerce. To date, Chanel's beauty Tmall flagship shop has over 5.5 million followers. 2020 also saw Chanel expand its eyewear e-commerce business, opening it up to 21 European countries including France, Italy, Spain and Germany. Bruno Pavlovsky also admitted earlier this year that Chanel was not stubborn and that during the epidemic, the team at the boutique specifically developed a lot of online content to interact with consumers, although the whole shopping process still ends in the physical shops.

Chanel creates a digital fashion experience to replace its cancelled Cruise show in Capri

Chanel invests in Farfetch for digital retail push

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Chanel's New Paris Store Paves Way for Digital Transformation

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Prototype

Prototype

Prototype

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PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Conclusion

Conclusion Conclusion

To sum up, the new consumers live and breathe digital, and have manifested strong preferences for personalised and seamless experiences integrated both online and offline.

As a result, this tech-savvy generation will continue to force luxury brands to become dramatically more digital.

Nearly 80% of luxury sales today are already “digitally influenced”, meaning that in their luxury shopping journeys, consumers hit one or more digital touchpoints. E-commerce therefore offers an enormous opportunity for growth for high-end brands to be at the service of their affluent and busy customers.

Luxury brands need to integrate online experiences and build the bridge between real life and digital realms.

The virtual e-commerce, omni-channel, and more interactive social media will help Chanel improve in its e-commerce.

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PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Bibliography

Bibliography Bibliography

Huining,Z. (2021). ‘Chanel is gradually opening up its e-commerce services in order to preserve its “scarcity”' [Online]. Available at: https://www.cbndata.com/information/194410. [Accessed 31 March, 2023] Image credits: https://virtualstore.dior.com/champs-elysees/#/en-int https://www.selfridges.com/GB/en/features/project-earth/resell/ https://www.vestiairecollective.com/vintage/chanel/#brand=Chanel%2350 https://wwd.com/business-news/retail/chanel-new-paris-flagship-prepares-digital-transformation-farfetch-1202912296/ https://www.culturewhisper.com/r/fashion/chanel_digital_show_cruise_collection/15634 https://wwd.com/business-news/retail/chanel-and-farfetch-unveil-boutique-of-tomorrow-1203399375/ https://jingdaily.com/burberry-store-shenzhen-china-tencent/ https://www.xupes.com/handbags/product-details/34049/chanel/black-quilted-lambskin-vintage-medium-classic-double-flap-bag.html https://i.pinimg.com/originals/c4/60/33/c46033e47226938dfb3a416a5a60b742.jpg https://www.vogue.com/article/top-jewelry-trends-spring-2019-runways/amp? epik=dj0yJnU9T0VUQ2V1VkpYbUYtS2pIakdYY2lQbF8yQ3AzaUhsTXcmcD0wJm49R0pJM1RwaTQtOTlIT1I4VGZhdU1pUSZ0PUFBQUFBR1Bzb 3Fn https://www.dailymail.co.uk/tvshowbiz/article-6230591/amp/Kaia-Gerber-Adwoa-Aboah-rock-sand-covered-Chanel-runway-ParisFashion-Week.html https://www.pinterest.co.uk/pin/706994841517305904/ https://poshmark.com/listing/Chanel-camelia-5c325927df03071fc21ffe5c? utm_source=pinterest_feed&epik=dj0yJnU9SXVTOTFWVDFVZ1A4TVpfZjFkTllJYW1naXhfcmdhYzcmcD0wJm49QkZfYXNJMU50Nm1VNGo2SV FiRGtPUSZ0PUFBQUFBR1AwZE4w https://1000logos.net/chanel-logo/ https://i.pinimg.com/originals/53/3e/c0/533ec072cd1351d20b8ae146072529bc.jpg -18-

PORTFOLIO |Zimo Chen| BRAND Extension of Chanel

Appendix

Appendix Appendix

4th Question : Do you know anything about the Chanel brand?

1th Question : How old are you?

Option

Number

Percentage

16-21

25

24.04%

22-30

29

27.88%

31-45

43

41.35%

Above 45

7

Total

104

Option

Number

Percentage

Professionals (teachers/ lawyers/doctors)

16

15.38%

Freelance (designer/ artist/photographer etc.)

38

Company Staff

17

16.35%

6

5.77%

Workers

0

0%

Students

25

24.04%

2

Total

104

1.92%

3th Question : What is your income?

Option

Number

Under 5000

21

5001-10000

45

10001-30000

304

Number

Percentage

Option

Number

Percentage

Very well known

11

10.58%

Tops

14

13.46%

Understood

85

81.73%

Bottoms

22

21.15%

Only heard of it

7

6.73%

76

73.08%

Never heard of it

1

0.96%

Jewelry

55

52.88%

104

Makeup

70

67.31%

5th Question : Have you ever purchased Chanel products (clothing, bags, shoes and boots, make-up and skincare, jewellery, all included)?

Skincare

26

25%

Total

104

Option

Number

Percentage

Bought many

16

15.38%

Percentage 20.19%

ACC (Bags, eyewear, shoes)

8th Question : Do you know anything about Chanel Digital?

Occasional purchases

80

76.92%

Option

Never bought

8

7.69%

Very well known

4

3.85%

Total

104

Understood

78

75%

Never heard of it

22

21.15%

Total

104

36.54%

Government staff

Others

Option

Total

2th Question : What is your occupation?

7th Question : What is the category of Chanel products you purchased?

6th Question : Where do you buy Chanel products?

Option

Number

Online stores (Official website, Tmall, 3rd party platform)

79

Offline retail stores

66

63.4%

Vintage stores

38

Purchasing agent

19

Total

104

9th Question : What do you know specifically about Chanel's digitization?

75.96%

Option

4

Total

104

Option

Number

Percentage

Support

81

77.88%

No Support

1

0.96%

Not sure

22

21.15%

Total

104

11th Question : What features would you like to have for Chanel's upgraded official website ecommerce?

Option

Number

Percentage

OmniChannel sales model (available for purchase both online and offline)

73

70.1%

Official website naked eye 3D, threedimensional display

88

84.6%

The official website is connected to social media platforms

65

62.5%

Opening of the second-hand product trading function

18

17.3%

0%

Number

Percentage

Digital Marketing Strategy

52

50%

Others

0

36.54%

Digitalization of the fashion show

40

38.46%

Total

104

18.2%

Chanel Virtual Clothing

57

54.81%

Others

9

8.65%

Total

104

3.85%

30001-50000 Above 50001

Percentage

Percentage

43.27% 28.85%

Number

10th Question : For Chanel's official website, if it is made into an upgraded official e-commerce site, would you support and buy it?

3.85%

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