So what do you think they are trying to do with Virgine? Hermes made $6B in sales and they are exclusive.
The job is Virginie is to maintain the Aura of Chanel. I don’t like the word exclusivity in the context of a designer because that’s not the job of a designer. Some decisions can or cannot kill the exclusivity of a brand.
Remember in the early 00’s, John did the « J’adore Dior » t-shirts. Iconic, very successful and despite the high prices at the time, it sold like hotcakes. Unfortunately, it somehow tarnished the exclusivity of the brand. Overtime, the change of direction they suggested to John allowed them to stop producing t-shirts. It took years for Dior to start produce t-shirts in womenswear again...
Ultimately, Hermès is a luxury brand and Chanel is a fashion house. I know globalization and the people of Kering and LVMH made believe that all those brands are just « luxury brands » but it’s not just that. Hermès is more a competitor of Vuitton than it is of Chanel. And that difference is very important because it has an impact from the production to the communication.
When I talk about the aura, it has to do with maintain the desirability of the brand. Those brands are exclusive at their core. Not everybody can buy Chanel. Yes, a lot of people in the world can afford the make-up and perfumes but at each step of the way to Couture, the level of accessibility decrease.
With Chanel then Virginie can still do some lackluster attires and it would be fine since Chanel makes most of their money from their perfumes and makeup then.
Chanel makes as much money from fashion than from Perfumes and Make-up. Chanel is literally two entities that sometimes interacts but that are run separately. There's a reason of why they have added collections over the years. If you pay closely attention to Karl's collections, they were very "commercial" in a sense that it was mostly about Tweed and knitwear. That's what clients went for and despite the outrageous prices (Chanel is more expensive than Hermes for example), people never stopped buying either clothes or bags.
Virginie is not a genius but like MGC she indulges with commercialism. Now, it's logo-a-gogo and very recognizable easy to wear Chanel pieces.
But overtime, it won't be enough because ultimately, Chanel might loose a bit of it aura. Karl reinvented himself and understood the industry because he created that "way of doing". I don't think Virginie will stay at Chanel for 10 years for example. Now, the industry needs to recover from the virus and at one point Chanel will also need that boost of new energy to increase their sales.