Chanel plans to open a new store concept to serve its most important customers: the ultra-elite. These private shops are intended to ensure that the Parisian fashion house can serve the high-spending VICs (very importat customers) and that they no longer have to queue for handbags and service in the “normal” shops.
Chanel currently operates 250 stores worldwide, excluding its cosmetics stores. In the major cities, where most Chanel boutiques are located, the clientele is a mix of tourists and passers-by, meaning that if they don’t have an appointment, returning customers have to wait in long lines to be served will.
Chanel’s greatest concern is the protection of its customers and especially the existing ones, said Chanel CFO Philippe Blondiaux to the trade magazine Business of Fashion. Therefore, the fashion house invests in “protected boutiques to serve customers in a very exclusive way.”
Chanel avoids e-commerce
Exclusivity is at the heart of luxury fashion, and the move to private stores and high-end service is in line with the strategy of fashion house Chanel, which has significantly increased the prices of its handbags in recent years. Chanel is one of the few luxury companies that does not sell its collections online – the exception being the beauty collections. The company said it won’t be looking to e-commerce anytime soon — a strategy that’s paying off after seeing a 50% increase in sales to $15 billion in 2021.
For comparison, Chanel’s iconic 2.55 bag cost less than $7,000 in 2019 and now sells for $10,000, which is roughly the same as Hermès’ Birkin and Kelly series.
Blondiaux commented in the annual report that despite the difficult situation in 2021, the company’s results showed remarkable customer demand, especially from local customers. “2022 will be another year of significant investments to support the long-term health of the Chanel brand and to achieve our goal of sustainability, be it in our people, the continued focus on quality, the customer experience, our boutiques or the transformation of ours supply chain.”
This translated post previously appeared on FashionUnited.uk.