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  1. CHANEL Presented by: Jessica Bercier-History and Competitors Liu Paisha-Sasha-Industrial Analysis Liu Zheng-Leo-Globalization Shu Yue-Alice-SWOT Analysis

  2. History • Gabrielle “Coco” Chanel • Started in 1909 • Known for simple and classic looks

  3. Chanel No. 5 • Introduced in 1922 • Still their most successful perfume today, nearly 86 years later

  4. 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

  5. Industry Analysis

  6. Global Issue Reason 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

  7. 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

  8. 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

  9. Chanel Competitors

  10. Gucci • Based in the Netherlands • Specializes in clothing, cosmetics, shoes • Strong brand identity

  11. PRADA • Based in Milan, Italy • Fashion leader • Known for its runway shows

  12. LVMH • Louis Vuitton • Based in Paris, France • One of the oldest fashion company in the world

  13. Globalization America Europe Asia Oceania

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

  15. European Market Youngster Orientation Strategy Fashion Shows

  16. Asian Market Consumer Psychology Wears Social Status

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

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

  19. SWOTChanel Strength Cloth Fashion • haute couture luxury goods • perfume • jewelry • watches • beauty products • eyeglasses

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

  21. Cloth cont. Cut Fabric Lining

  22. 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.

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

  24. 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 .

  25. Chanel Weakness • Chanel high price • Chanel limited productions • Chanel beauty productions

  26. 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

  27. 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.

  28. 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

  29. Long- term Recommendations • A. More focus on younger generation • More ideas in clothing design • More research in African market

  30. Conclusion From history to nowadays Faces opportunity and challenges Future development