Chapter 5: Developing a Global Vision

Chanel’s global vision is Coco Chanel’s philosophy and attitude. In 1910 Gabriele Chanel opens her first shop at 21rue Cambon in Paris, creating hats under the name “CHANEL MODES.” Her designs help to establish her reputation. In 1915, she opens her first couture house in Biarritz, France. The brand just kept growing and growing.  After the death of Coco, brand faced important period during which workers like Kitty D’Alessio, who was hired in 1980, later she became the key person of Chanel. She was the person that let Karl Lagerfeld exert his talent to give the brand Chanel a total face-lift. Karl Lagerfeld took Coco’s place as the creative director in 1983. He has become the late Mademoiselle Coco’s replacement and he himself has become an icon in the fashion world.

Of all the luxury fashion brands in the world, Chanel is perhaps the most famous, as well as the most secretive. In the article by Imran Amed for “Business of fashion” with Bruno Pavlovsky, wrote: “Nobody outside the company knows exactly how big the Chanel business is. The fragrance and beauty business alone has been estimated to turn over more than $1 billion a year, powered by the world’s first and most famous modern fragrance, Chanel No. 5. There is also a growing jewelry business and the company’s crown jewel, the ready-to-wear and haute couture businesses on which the codes of the house are based. All told, Chanel could very well be doing over $3 billion in sales revenue per year”

There are over 200 Chanel stores located worldwide. Chanel skin care, cosmetics, and fragrance products can as well be found in some department stores and airports.

Chanel has the highest brand awareness among luxury Chinese consumers. As the article” Chanel is the hottest luxury brand in China “by Sophia says

“It's also the most-purchased luxury brand among wealthy Chinese -- 41% of whom say they've bought a Chanel product in the last year, compared to 32% for Dior. Forty-six percent of those surveyed said they hope to buy more Chanel goodies in the coming year. And in a country where gift-giving is very important, Chanel is the present of choice for wealthy consumers. But what makes Chanel more appealing than its competitors? The high-end fashion house has "invested very seriously in advertising and retail," said Brian Buchwald of Bomoda. Chanel is courting Chinese consumers through "websites, with strong social media ... they're leveraging Chinese celebrities [and] Western celebrities who are well-known to the Chinese."