Chanel opens its own store for the customers who pay the most-Fashion Trends

Chanel is looking to increase exclusivity and serve its top customers. After news, revenue has increased by 50% from 2021 to US$15 billion.

The French luxury company reported that Chanel’s sales tripled its profits as sales of its apparel, jewelry and watches skyrocketed compared with pre-pandemic levels. While sales of beauty products and fragrances have declined, the sector has seen growth in direct-to-consumer sales. To support traffic from its highest spending customers, CEO Philippe Bondiaux has shared that it will open these private stores to top tier customers starting in early 2023. in major Asian cities.

Chanel has seen a rapid recovery to pre-pandemic levels and currently holds the second highest revenue in the luxury industry behind Louis Vuitton. Although Chanel’s sales have grown rapidly, it is still about a third slower than Hermès, the luxury brand’s rival. Bondiaux claims that the high sales are due to a combination of increased prices and higher output. In December 2021, Chanel announced that it was planning to increase the price of its most classic bags by at least 60%.

Despite the growth, the company has remained steadfast in maintaining its direct-to-consumer beauty business strategy. While Chanel’s low-end luxury items including beauty, perfume and eyewear can be purchased online, Chanel is known for not using e-commerce for its fashion and watches.

“We do not, and will not, sell fashion or watches online,” Blondiaux said. Exclusiveness remains one of Chanel’s top priorities. Regarding the private stores for their top customers, Bondiaux reiterated, “Our greatest concern is the protection of our customers and especially our pre-existing customers. . We will invest in stores that are very carefully guarded to serve customers in a very personal way.”