Do You Fear for the Future of Chanel?

[KaKe]

I didnt read that whole thing sorry. This makes sense. Now LV and Chanel buying as one means that they will have bigger orders and push the competiton to the back of the line.

klaus schwab lost…

lol how did he lose?? a globalized world governed by stakeholders is what he wants.

 

[Nimsay]

This isnt globalization tho. its just strategy in a post covid supply chain - teaming up ensures LV and Chanel never want for raw materials. If anything this is due to covid and too much globalization.

 

[Drusilla_]

coming back to the thread title....not really. Ownership-wise it's still privately held and isn't likely to be rocking too many boats or Succession-style battles, the brand seems to favour long tenures for designers (ok Karl was a sample of one but Virginie is getting on for five years at the helm now) so not likely to have major ructions on the creative front (creatively maybe less than ideal, I admit) but overall it's very stable, or looks like it is anyway.
The real question is what happens if a downturn comes like one's expected in 2024. I suppose Chanel can just dig in its heels and wait it out, having the advantage of being huge and established and also not having any shareholders to answer to.

 

[PDFSD]

Chanel CEO Leena Nair on her Leadership Style at the Luxury Fashion Brand​

The CEO of French fashion house Chanel, Leena Nair, is a human resources veteran who had never run a company, spending decades at Unilever, before switching from the world of fast-moving consumer goods to haute couture and beauty. Francine Lacqua speaks to Leena Nair about her professional and personal journey, how it defines her leadership style, and her unique approach at the top of luxury.

00:00 - Intro
01:10 - Leena Nair on luxury sector and challenges: geopolitics, inflation, AI
04:10 - Leena Nair on Chanel's clients, Gen Z and Alpha customers, Coco Chanel's legacy
07:00 - Leena Nair on growing up in India, looking different, top advice to women
11:00 - Leena Nair on price increases, China, US market
13:22 - Leena Nair on leadership, diversity, empowering women
17:23 - Leena Nair on sustainability, carbon emissions and risk-taking
19:47 - Leena Nair on transition from Unilever and HR to luxury CEO
22:37 - Leena Nair on best and worst advice

Chanel CEO Says Price Hikes Driven by Inflation, Craftsmanship​

• Leena Nair sits down in Leaders With Lacqua interview
• Luxury brand seeks to avoid price gaps between countries

Leena Nair in London, on April 15.Photographer: Jason Alden/
Bloomberg
By Angelina Rascouet
April 25, 2024 at 2:40 PM GMT+2

Chanel’s chief executive officer defended the luxury brand’s pricing after it raised the cost of one of its best-known handbags to more than €10,000 ($10,725).
The fashion label, known for its haute couture designs and fragrances, takes account of inflation and its high standards for materials and craftsmanship in setting prices, CEO Leena Nair told Bloomberg’s Francine Lacqua in a Leaders With Lacqua interview.
“We use exquisite raw materials and our production is very rigorous, laborious, handmade — so we raise our prices according to the inflation that we see,” Nair said.

On the latest episode of Leaders With Lacqua, Francine Lacqua speaks to Chanel CEO Leena Nair about her professional and personal journey, how it defines her leadership style, and her unique approach at the top of luxury.
Luxury brands like Chanel have made headlines in recent years for pushing up the prices of their often coveted goods. A classic medium-sized Chanel flap bag, for instance, rose above the €10,000 threshold for the first time in Paris last month.

Chanel tends to cater to the most affluent customers, on a par with those of Hermes International SCA or watchmaker Rolex, whose spending power typically remains resilient in the face of slowing economic growth or geopolitical turmoil.
Read more: Chanel Flap Bag Now Costs More Than €10,000 in Paris
Nair said the brand, founded more than a century ago by Coco Chanel, pursues “sensible and modest growth” as it focuses on preserving the quality of its products over the long term — an approach that’s made easier by its status as a privately-held company.
Nair, the former head of human resources at Unilever Plc, became Chanel CEO in January 2022.
She reiterated that the company has no plans to hold an initial public offering. Chanel is owned by the billionaire brothers Alain and Gerard Wertheimer, whose fortunes are estimated at $50 billion each, according to the Bloomberg Billionaires Index.
Founded in Paris but headquartered in London since 2018, Chanel reports its financial performance once a year, generally around late May. Revenue rose 17% to $17.2 billion in 2022.


The luxury goods maker behind the Chanel No. 5 fragrance seeks pricing harmonization across the globe, and sometimes adjusts prices in different markets to ensure that, Nair said.
“Our clients shouldn’t experience excess price differentials. No matter where they buy, we want to stay fair to all our clients everywhere,” she said.

— With assistance from Francine Lacqua