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About Chanel, Inc.

Known for classic couture like "the little black dress" and famed fragrance Chanel No. 5, Chanel has been a haute name in fashion and cosmetics for decades. The company also creates watches and jewelry and has a single license -- for eyewear with Luxottica. Founder Gabrielle "Coco" Chanel opened her first boutique in 1913, touting designs known for simplicity. After Coco died in 1971, Chanel's style stagnated for years until Karl Lagerfeld took over the designs and revived the label by tapping a younger market. The company boasts more than 120 boutiques worldwide. Controlled by chairman Alain Wertheimer's family, Chanel also owns lingerie and swimwear brand Eres and manages seven ateliers through Paraffection.

Operations

Chanel SA's subsidiary companies include Chanel Inc. (US), Chanel K.K. (Japan), Chanel Hong Kong, Eres, Paraffection, and others. Chanel enlists the help of eyewear behemoth Luxottica to make its name-brand sunglasses.

Chanel's Ready-to-Wear and Leather Goods department is its biggest revenue earner. 

Geographic Reach

Chanel is headquartered in Neuilly-sur-Seine, in the Île-de-France region just outside of Paris. The company's products are sold worldwide; it generates 40% of sales in Europe, 33% in the Asia/Pacific region, and 20% in the Americas.

Sales and Marketing

Chanel sells its luxury goods worldwide through more than around 190 boutiques. Its clothes and jewelry cannot be bought online. Its beauty products can be bought in department stores and specialty stores, as well as online.

The label positions itself in the top end of the luxury segment.

Financial Performance

Chanel published its full financials for the first time in 2018, revealing the company to have revenue of $9.6 billion in 2017, a 12% increase on 2016, and profits of $1.7 billion, up 19%. These figures place it among the most powerful luxury goods companies. 

Strategy

Financially speaking, for many years Chanel has kept its cards close to its chest, leaving it to speculation where it ranks among the luxury fashion elite. That changed in 2018 when the company restructured under a London-listed company, Chanel Limited, and published its accounts for the first time, revealing revenue figures of $9.6 billion that puts the company right in the industry's front row.

The move has been interpreted as a show of strength and ambition as the company guns for further growth. The company racked up advertising spend of $1.5 billion in 2017, an increase of 15% on prior year, and escalated its store opening program. Chanel's president of fashion and accessories announced 2018 would be "the year of flagships", with six new openings planned for the year in global centers such as New York, Seoul, London, Abu Dhabi, Copenhagen, and Tokyo.

The company also re-affirmed it commitment to physical retail of its fashion and accessories. It believes the detached nature of e-commerce does not provide the kind of customer experience demanded by its luxury goods, which often retail for thousands of dollars. 

Chanel, Inc.

9 W 57TH ST BSMT 2B
New York, NY 10019-2790
Phone: 1 (212) 688-5055

Stats

Employer Type: Privately Owned
President: Joyce Green
Chief Accountant: Jeff Gresh
Chb: Alain W Wertheimer
Employees (This Location): 300
Employees (All Locations): 1,450

Major Office Locations

New York, NY