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Fashion Brand Chanel Still Far Away From Adopting A Completely Online Platform For Sale


11/25/2017


Fashion Brand Chanel Still Far Away From Adopting A Completely Online Platform For Sale
Almost all the rivals of France’s Chanel have entered into the digital world of selling merchandise and this company is one of the fashion world’s last hold-outs that is still reliant on the brock and mortar outlets instead of websites to try out new clients. The company has recently said that it has no immediate plans for initiating any platform for online sales of its coveted outfits or handbags, according to a senior executive of the company.
 
However, the company already has an online sale channel for its perfumes like its Chanel No 5 and for eyeglasses and beauty products. But this label has no plans to take its tweed suits and $4,300-plus quilted leather bags online for sale.
 
According to Bruno Pavlovsky, president of fashion at Chanel, perfumes, eyeglasses and beauty products is as far as the company is willing to go with respect to online sale channels.
 
“If you give everything to everyone straight away, I think you lose that exclusivity,” Pavlovsky told a Vogue conference in Paris. “I‘m not saying we won’t try it one day, but if we do it will be because we’ll really think there’s some added value.”
 
Fearing that making their products too widely available all around the world would make them erase their cachet, luxury goods brands were amongst the industry sectors that was slowest to adopt e-commerce sites suitable for online sale of products.
 
However, by now the plunge online has been taken by most. The parent company of Louis Vuitton - conglomerate LVMH, had recently hired a former Apple executive for overseeing the launch of its website that carries its multiple labels, even though the company’s online strategy is yet to be harmonized for each of its brands.
 
According to consultancy Bain, this year, online sales will account for about 10 percent of the overall revenues for the global luxury goods market and predicts that the total contribution of online sale might reach 25 percent by 2025.
 
Chanel, founded by Gabrielle “Coco” Chanel in 1910, still had waiting lists for its best-selling bags and has been able to reach out to an increasing number of young audience, said Pavlovsky, while stressing that the company’s strategy to majorly stay out of the online platform for sale had not proved to be a drag on it.
 
Regular financial results are not disclosed by Chanel and it is controlled by secretive billionaires Alain and Gerard Wertheimer.
 
There had been a drop of 35 percent in the profit of the company and a fall of 9 percent in its revenues according to 2016 disclosure of financial figures of the company as filed with the Amsterdam exchange.
 
A sale bounce back has been experienced by most of the major rivals of Chanel.
 
But digital marketing is nothing new to Chanel. Images from the extravagant catwalk shows and collections by designer Karl Lagerfeld are displayed on digital social media like Instagram and Twitter.
 
Pavlovsky said that clothes desire dot be tried on by buyers and that is why the company may only look at offering “e-services” that would only allow customers to reserve items online or make store appointments.
 
“Every time I‘m in China I meet clients who come and say, ‘whatever you do don’t do e-commerce. The day you do it for us this won’t be exclusive anymore’,” Pavlovsky said.
 
(Sourcec:www.reuters.com)


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