CHANELCHANELPresented by:

Jessica Bercier-History and CompetitorsLiu Paisha-Sasha-Industrial Analysis

Liu Zheng-Leo-GlobalizationShu Yue-Alice-SWOT Analysis

History

Gabrielle “Coco” Chanel

Started in 1909

Known for simple and

classic looks

Chanel No. 5

Introduced in 1922

Still their most successful perfume today, nearly 86 years later

Coco Chanel

Connection with the Germans

Fashion Oscar in 1957

Even after her death in 1971, she lives on as an icon to many in the fashion industry today.

Chanel, post Coco

Industry Analysis

Global Issue

The profit shrink ,especial in cosmetics

Disorder competition in international market Current Situation France & US France : profit down from 2007 to now US: 0.8% growth in 2007 Worldwide *cosmetics sales increase just 3.6% in 2006,

not a great change in 2007

Reason

Risks

High Duty In China, the customs added 60% to the cost of goods

Different Concepts Compare western countries and China on perfume preference

Fake Goods Difficult to distinguish

In every corner, especially in developing countries

Future trend

Pay more attention to emerging markets Some brands are just in developed cities, not yet found in

small cities, or developing countries

Reducing the price---- cost of good Currently, the cost is too high for average citizens who

want to buy it

Expand the man cosmetics market continually Currently, not universal like woman cosmetics

Chanel Competitors

Gucci

Based in the Netherlands

Specializes in clothing, cosmetics, shoes

Strong brand identity

PRADA

Based in Milan, Italy

Fashion leader

Known for its runway shows

LVMH

Louis Vuitton

Based in Paris, France

One of the oldest fashion company in the world

Cloth Fashion haute couture luxury goods perfume jewelry watches beauty products eyeglasses

SWOTChanel Strength

Chanel production is known for its quality. Some of the cloth is exclusively owned by Chanel.

Tweed Fabric

Decorative Chain

Button

Embroidery

Cloth cont.Cut

LiningFabric

Camellia and Chanel Logo

Camellia is an important design factor in Chanel’s design.

Chanel’s logo is two C together which has become one of the most recognized labels in the world.

Karl Lagerfeld

The Chanel Chief Designer who is leading Chanel to another peak in its fashion development.

Chanel Perfume

No5, No19, COCO, Cristall ， ALLURE , CHANCE, and N°22, CUIR DE RUSSIE, GARDENIA, BOIS DES ILES, UNE FLEUR DE CHANEL and Chanel male perfume: Allure .

Chanel Weakness

Chanel high price

Chanel limited productions

Chanel beauty productions

Chanel Opportunity

Expand business in emerging market more rapidly.

Mobile art exhibition in seven cities in China. The first is in Hong Kong.

Opening of its largest global franchised store in Tokyo

Chanel 2008/2009 winter season

Chanel Threat

Chanel counterfeits and illegal use of its double-C logo.

Chanel will face a strong competition in China market and meet a lot of difficulties.

Short-term

Find ways to lower the prices of products in emerging markets

Improve its cosmetic line Develop a men’s line of facial products Allocate the investment in expanding

emerging market reasonably Pay attention to the fakes and may adopt

technology to limit them

Long- term Recommendations

A. More focus on younger generation

More ideas in clothing design

More research in African market

Conclusion

From history to nowadays

Faces opportunity and challenges

Future development