Chanel has been a hot topic in industry circles lately — and not just because the French couture and beauty giant is expected to announce a new designer before the Christmas holidays.
The house — which under Karl Lagerfeld, wrote the playbook for building a global luxury brand, with a pyramid of products, from haute couture to $30 nail polish, soaked in a heady collision of heritage and modern celebrity culture — remains one of the sector’s strongest and most iconic labels.
Its latest Paris fashion week show, staged in October without a head designer following Virginie Viard’s sudden exit four months earlier, was a testament to the enduring power of the brand and its closely studied template.
But amid a sharp downturn in luxury demand, Chanel has become “exhibit A” for another reason, too.
In recent years, the brand has hiked prices far faster than inflation without corresponding upgrades to creativity or quality. (On the contrary, as prices soared, the brand became the target of online critique focused on its runway looks and manufacturing standards). Yet where Chanel went, others followed, with price hikes that have made some shoppers wonder whether luxury brands are still worth it.
All of this will be under the microscope as Chanel presents its latest “Métiers d’Art” collection in Hangzhou, a historic and wealthy city in the key China market, on Dec. 3.
There is some evidence that Chanel is taking steps to address high prices. As of the third quarter, its average selling price across categories was down 7 percent year-on-year, according to data from Bernstein. But this week, industry observers will mostly be looking for progress on the other side of the value equation.
Chanel’s annual “Métiers d’Art” outings are designed to showcase the brand’s specialist subsidiaries, from embroiderers Lesage to feather-and-flower workers Lemarié. And Tuesday’s show will give the company a grand stage on which to renew its commitment to high-quality craftsmanship.
Then, there’s the matter of Chanel’s next designer. It’s been almost six months since Viard’s departure and an announcement is expected between the brand’s Hangzhou show and the Christmas holidays.
The job is fashion’s most coveted, and the company is said to have held discussions with a range of candidates, from Hedi Slimane to Simon Porte Jacquemus and Bottega Veneta’s Matthieu Blazy.
Chanel’s brand lexicon is tightly defined, but the right pick could bring fresh energy to its collections and communications, enhancing its value proposition at a time when clients are more discerning than ever.
