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. 

Chapter 4: The Marketing Enviroment

       The House of Chanel is globally established company that has been around for over a century, resulting in an extensive range of target markets. Chanel products are an assortment of clothing, accessories, perfumes, and cosmetics that attract people from around the around the world of all ages. Chanel isn't the most affordable brand when it comes to retail, consequently the preferable audience is for people of higher income and celebrities. 

       The ready to wear clothing depending on the collection, mostly targets men and woman of today's generation (generation x). Some not all collections are targeted towards the younger generation because Chanel is a ageless brand which, a woman of any generation would appreciate wearing. The accessories, and handbags are also the alike depending on the style of the product can be wearable for any generation. As for cosmetics and skin care depending on the product, may be used for woman ages 16 and above.  The skin care line offers many different products for the type of skin a woman may have. For example the ultra correction line repair cream is a product developed for anti-wrinkle maybe be used for woman in their mid 30's and older.  For younger woman, the mousse exfoliante pureté is a rinse-off exfoliating cleansing foam purity cleanser may seem more appealing to use. 

       In terms of perfume there are also directed target markets for woman. The most well known perfume and best seller, Chanel No. 5 is said to represent a mature strong woman of elegance and sophistication. The scent is captured to be very distinct and classy. The perfume is distinguished to be worn for mature chic, refined woman. The commercial used for Chanel No. 5 is represented by the very elegant Nicole Kidman. In the commercial Nicole is portrayed as the most famous woman in the world, with whom an anonymous writer becomes infatuated with. Afterwards, a fragrant memory is all he has of her, "her kiss, her smile, her perfume."  The newest Chanel No. 5 commercial has made recent history because for the first time a male actor, Brad Pitt is the spokesperson. The commercial had received many mixed reviews, but as news reports have said numbers don't lie, resulting in another hit ad for the reinvention of Chanel No. 5. 

 

       In terms of targeting towards a younger market, the perfume Coco Mademoiselle is indicated for young woman. The most recent commercial for Coco Mademoiselle stars Keira Knightley.Three years after the first commercial film, Knightley reprises her role as Coco Mademoiselle, a modern day Coco Chanel whose mysterious, daring and rebellious. The commercial takes on a urban feel, with Knightley appearing on the streets of Paris in a chic, beige motorcycle jumpsuit. The commercial shows the relationship between the photographer and the model, reflecting of sense independence.The fragrance represents the spirit of Coco Chanel in this feminine, sexy, young and exciting fragrance.

  

Chapter 3: Ethics and Social Responsibility

      In terms of ethics and social responsibility fashion has never had the best reputation.  Regarding issues about eating disorders, body image, and also the use of animal fur. Though luxury goods that Chanel sell may be see to be extravagant, lavishness, or even wasteful, this might appear to be a contradiction. Head designer Karl Lagerfeld has caused much positive and negative controversy through the Chanel brand. 
     Recently Chanel has "gone green" reported using eco-friendly materials and craftsmanship in many of the newer clothing pieces. Chanel's spring/summer 2013 show at Paris' Grand Palais had gave fashion a whole new meaning to the idea of eco-friendly clothing. Showcasing the new designs, models strutted the catwalk along with giant wind turbines and titled solar panels.  

   Chanel has paved the way for many other brands to not use real fur. Chanel deputed their faux fur look in 2010 as alternative for real fur used in many luxury brand's looks. Karl has stated “I can hardly eat meat because it has to look like something what it was not when it was alive.” In terms of the perfume and cosmetics field,Chanel does not test against animals or use any type of animal in the products.

Karl Lagerfeld has sparked much attention when it comes to fashion models, whether the models he has used in any of his campaigns/shows have been too thin.  In one interview when he was asked if he feels responsible for the the health of the models he works with, he responded with "I can tell you all kinds of moral tales, but fashion and reality are vaguely different." Controversy had struck when plus size model Crystal Renn was used for a Chanel campaign. Crystal was shot from the neck up not showing her figure in the photograph. Many critics had their opinions whether Chanel, or rather Karl Lagerfeld was discriminating against plus size model figure. I beg to differ because Crystal Renn was then used Chanel's 2010 resort show. Having a plus size model walk in a Chanel show was declared as "groundbreaking" for the fashion world. 

Chanel has reported to have saved a number of Parisian haute couture ateliers, from going bankrupt thanks to morally concerned head designer Karl Lagerfeld. Chanel also has many charity events, and fashion shows that support a cause each year,which the proceeds go to. The Chanel Pour le Temps Charity Fashion Show is one of the most anticipated events of the year. Chanel is more than just a luxury name, and more than a fashionable handbag. 

http://nymag.com/thecut/2010/05/andr_leon_talley_on_calls_crys.html , http://chanelpourletemps.weebly.com/home.html, newyorktimes.com, chanel.com, 

Chapter 2 - Strategic Planning for Competitive Advantage

    
    Chanel S.A., also known as The House of Chanel, is a privately owned company. Chanel is known world wide as a luxury brand. Through the luxury brand, the products sold are produced of high quality. Chanel is a global leader in fashion the fashion world and also the top innovator in the fragrance industry for decades. The mission of Chanel is "to be the ultimate house of luxury, defining style and creating desire, now and forever." Chanel illustrates products desirable of both sexes.  Chanel's strategic planning for competitive advantage isn't as loud or demanding than other fashion brands today. Chanel is a well established brand for nearly a century, and globally known. Chanel's growing success today lies mostly on Karl Lagerfeld, who never fails to interest consumers. Chanel is also extremely effective in preserving the brand image, in agreement to buyer’s wants and market trends. 

SWOT analysis of Chanel S.A

Strengths:  

-- Strong brand image: The brand focuses on timeless and classic designs that is highly recognized. The Chanel logo is also an icon.

-- High quality products: Most clothing pieces and accessories made are used with high quality materials and fabrics. Leather and tweet are the most infamous materials used in classic Chanel looks. 

-- Designer Karl Lagerfeld: Fashion icon Karl Lagerfeld is always reinventing Chanel and is known to have changed everything, yet nothing about Chanel. 

-- Strong Management: Chanel INC. is an Equal Employment Opportunity (EEO) employer, which has highly trained individuals who are technically skilled and knowledgeable about their qualified area of expertise.

Weakness:  

-- Price: For some the price of Chanel maybe reasonable but for most working class people the brand is rather expensive, which comes with sacrifice.

--Limited Production: Chanel discontinues many products after a period of time, especially in beauty production. Chanel may discontinue a certain item if it is from an older season.

Opportunities:  

-- Expansion: There are Chanel stores located in North and South America, Europe, Asia, and Australia. The company continues to expand sales production in the booming Asian market today.

-- Technology: Including the Chanel website and among other social networking sites. Chanel also offers an application on apple products.

Threats: 

-- Counterfeit: Illegal production of interfacing C logo and purse distribution are most commonly counterfeited. 

--Imitating Designs:  Many other designers and brand names mimic classic Chanel looks and often sell for more affordable prices to the consumer. The classic quilted chain purse, and "little black dress" are among many of the classic looks often replicated.  

Competitive Advantage: 

           The top three competitors of Chanel S.A are Louis Vuitton Moet Hennessy (LVMH), Gucci, and Prada. All luxury brands may seem similar to some but each of these brands differs completely to origin. Chanel differs from other designers because it is a classic and ageless brand rather than very modern or contemporary. Chanel’s competitive advantage lies in promotion, quality, benefits of use and design features. Chanel has advertisements in most fashion magazines, including Vogue. Chanel sells their cosmetic and skin care line separately in stores from the ready to wear clothing and accessories. The cosmetic and skin care line can be found in Macy's or Bloomingdales department stores. Each trained employee in every division is training accordingly to the area whether it maybe a makeup artist or consultant. Each consultant working in a Chanel boutique has had previous training in Paris to learn the history of the brand.

      Chanel has a fashion show four times a year to show each season's newest looks. The four types of fashion shows include, ready to wear, resort, pre-fall, and couture. These fashion shows include some of the most famous models strutting down the catwalk in the most luxurious of destinations. These fashion shows draw much attention and many prestigious individuals of the fashion world attend and also, celebrities.

chanel.com , wikipedia.com, newyorktimes.com, forbes.com