Chapter 15: Retailing

          For Chapter 15, I had recently visited the Chanel store in Manhattan located on Spring street in Soho. The boutique is quite new, which opened in 2010. It is the third Chanel store located in Manhattan. The store was located in a very swanky area along side many other luxury brands neighboring around the corner like Louie Vuitton. The atmosphere of the store even before I had entered the store had a very high end, chic/modern vibe. The Soho store seems to have a bit of everything, including clothes, cosmetics, shoes, accessories and bijoux. I must say that the ready to wear clothing seemed to be fairly limited, as there were only two, at most three articles of the same clothing but only in one size. Even a simple plain white tee with tweed embroidery on the collar is $820. That usually goes with out saying because it is Chanel. The boutique is beautifully designed, with a black and white theme in true Chanel fashion, full of mirrors,  bright lights and the Chanel logo. Completed with white tiles and high black ceilings. The store is spread out into little sections for an intimate feel, which also allows for display of hand bags, shoes, and mannequins. In the rear of the boutique there is a sitting area too, complete with a black leather couch and two tv screens attached to the wall where Chanel fashion shows are being shown. When I asked the security guard/doorman if  I could take a picture of inside the store I was declined, so unfortunately there are absolutely no pictures allowed to be taken inside the store. The store was not like any normal crowded store in Soho, it had a hand full of customer's who were being helped by a consultant.The consultants seemed very calm and professional. The employees were not overbearing in the sense of constantly asking shoppers if they need help with anything. In each section the employees seemed to be specialized in each area whether it be from shoes to cosmetics.
             
          Chanel is a franchise with 200 stores world wide, which includes specialty stores, along with products sold in select department stores. Chanel fragrance and beauté can be purchased online. In terms of online shopping,Chanel is one of the few luxury brands that doesn’t sell clothing online. According to Bruno Palovsky, Chanel's president of fashion states "Our clothes are quite sophisticated and one of our strengths is alterations. To be able to wear Chanel clothes, you need to try them on. You need to be in the fitting room. You need to have a tailor who alters the clothes to fit exactly to your body. I think it’s part of Chanel. It’s more than just our service. It’s part of our differentiation to have ready-to-wear that is perfect for our customers." Chanel wants the customer to visit the store, to touch and feel the product before purchasing but also to try the product, which is an important factor in Chanel's retailing division. 

 

Chapter 6 : Consumer Decision Making

       What is it about luxury items that make people want to buy them? Is the quality of the item, material, or style? There are many key factors that go through a consumer's mind before purchasing an item. For Chanel, consumer's buy for style, class and quality of the item. Chanel products are easily recognized because they are so well known. Media is a huge factor in buying Chanel products. Whether it is your favorite celebrity or advertisement in a fashion magazine, there are many reasons for consumer's to desire a Chanel product. The company offers an array of products that cater to men and woman, although Chanel is often viewed a feminine brand. Chanel products aren't always affordable for the work class, this is another factor in consumer decision making for the buyer to consider. With expenses comes sacrifices, but some individuals value style and quality more than price. The company does not aim to be affordable, Chanel provides for luxury, not cost efficiency.  Consumer's continue to buy products based on the innovation of the product lines, which continue to grow and expand. With the innovation of the products, Chanel has adapted to current times and the digital evolution. Consumer's can stay connected through the Chanel website, Chanel app, Chanel News blog, the new Coco Chanel website,  and with over one million followers on Twitter, 7 million fans on Facebook. As being a global brand all these features can be seen in select languages according to the viewer.

   

 

 

          Chanel is a trustworthy brand, the consumer's trust that with buying these products whether it is makeup or a handbag that it is of the utmost quality. Consumer's buy Chanel's products to be stylish and wear what is in season. There are six collections of clothing made each year, consumer's want to buy pieces from these collections because they are the most up to date fashion. Chanel is a very creative brand that sets high standards and influences the fashion world and other designers. The consumer purchases Chanel products because they are made to last. They last for generations to wear because of the timeless effect that Chanel has.

Chapter 5: Developing a Global Vision

         Of all the luxury fashion brands in the world, Chanel is possibly the most famous, as well as the most private. Chanel S.A is an independent and unlisted company, which was found in 1909 in Paris, by Gabrielle Chanel. Chanel is a world leader and innovator in high fashion that includes clothing, accessories, skincare, jewelry, and fragrances.  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. 

       Currently, Chanel operates its business in five regions, each of which is led by regional heads. Each regional head directly report to the Global CEO. The Japanese division, Chanel K.K. has eight company-owned retail boutiques, five of which are in central Tokyo, such as the flagship store in Ginza. There are 30 shop-in boutiques, and 13 that specialize in Chanel watches and jewelry. President Richard Collasse head of Chanel K.K. is in charge of the Asian region.  President Collasse is the key figure in Asian market because he manages the operations in the growing markets in China and India on top of the already flourishing Japanese market. In Paris, where Chanel was founded, there are five company-owned retail boutiques; one of which specializes in shoes. There seven shop-in-shop boutiques that, three of which specialize in shoes and four boutiques specializing in Chanel watches and jewelry. 

      

      

         Chanel employees all share Chanel’s global vision accordingly to the company. From research given, Chanel presents a vision on the occasion that the company aspires for a change. The vision stated at the start of 2008 was to be “The Ultimate House of Luxury, defining style and creating desire, now and forever.” This statement suggests that Chanel aspires to be the fundamental model of what a luxury brand should look like as well show Chanel’s dedication to producing luxurious and high-quality products. To define style, thus fashion is said to fade but style is eternal according to Coco Chanel. Lastly stating “now and forever” suggesting the constancy, endurance and the agelessness of Chanel. At the basis of Chanel’s global vision is Coco Chanel’s philosophy and attitude. The vision compels employees to constantly change with the times and environment. Chanel itself is the world’s highest form of total luxury. The first-class market is and will always be the market in which Chanel strives to be number one. Although it belongs to the category of luxury brands, such as  Prada and Louis Vuitton, Chanel did not emerge as a result of the desires of royals and aristocrats.  Chanel will continue to promote and expand globally since it has for the past decades.