CHANEL Presented by: Jessica Bercier-History and Competitors Liu Paisha-Sasha-Industrial Analysis Liu Zheng-Leo-Globalization Shu 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

Globalization America Europe Asia Oceania

American Market A. Partnerships with Local Companies B. Positive Influences by Celebrities

Youngster Orientation Strategy European Market Youngster Orientation Strategy Fashion Shows

Asian Market Consumer Psychology Wears Social Status

Advertising Modification Think Pink collection-Asia exclusive Asian Market Advertising Modification Coco Lee Think Pink collection-Asia exclusive

Advertising for Chanel No.5 Shifting Products into Malls Oceania Advertising for Chanel No.5 Nicole Kidman Shifting Products into Malls

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

Chanel production is known for its quality Chanel production is known for its quality. Some of the cloth is exclusively owned by Chanel. Embroidery Tweed Fabric Button Decorative Chain

Cloth cont. Cut Fabric Lining

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 limited productions Chanel beauty productions Chanel Weakness Chanel high price Chanel limited productions Chanel beauty productions

Expand business in emerging market more rapidly. 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 counterfeits and illegal use of its double-C logo. 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