Do You Fear for the Future of Chanel?

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the downturn's coming for everyone but Chanel's big enough to weather it, I think. Especially if MB establishes a point of view and sharpens up the clothing offerings a bit.

but his show wont take effect till end of the year basically

 

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They can stick it out until then, one bad year isn't going to put them out of business.

 

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just for future context /info some interesting Facts/notes on past Chanel

Arie Kopelman, Former President of Chanel, Dies at 86​

Kopelman led Chanel through a massive period of growth, and was known for his sense of humor.
WWD

OCTOBER 8, 2024, ​

In 1985, the owners of Chanel, Alain Wertheimer and Gerard Wertheimer, hired Kopelman as Chanel Inc.’s president and chief operating officer at their New York headquarters. The way Kopelman told it, Wertheimer insisted he had no other choice when he hired Kopelman. He said [Alain] Wertheimer told him, “I will never find someone whose wife’s name is Coco and whose first language is French. Come and run my company.”
Kopelman was hired to manage both Chanel and Frederic Fekkai Beaute in the U.S. on Jan. 6, 1986.
Over the next 19 years, Kopelman expanded the company’s retail, fragrance, cosmetics, skin care, eyewear and accessories businesses, growing it into a multibillion-dollar enterprise.
When Kopelman got to Chanel, the brand had two freestanding boutiques and an annual revenue of a reported $357 million.

By the time he retired as president and chief operating officer in 2004, there were 17 brick-and-mortar stores in the U.S., and by 2014, the brand was doing $7 billion in sales.

Facing increased competition from European luxury brands, Kopelman told WWD in 2000 that his plan was to remodel the stores (the company rolled out a sleek new retail format designed by Peter Marino) and corners across America, increase the ad spend, reach out to new customers with “irresistible” lower-priced goods and leverage the brand’s skin care collection. “The Chanel name means a lot — it’s a standard of luxury — but we want to make it even more relevant today,” Kopelman said.

He said that Chanel had been quite a different place when he joined the company in 1985.
At that time, the firm was just beginning to open its own stores and Karl Lagerfeld had been designing the ready-to-wear collection for only a few years.
The mindset among many of the long-term Chanel employees he encountered was that the house’s fashion was on a pedestal and shouldn’t be advertised at all, or not in the same way that fragrance was promoted.
Kopelman was credited with forging strong relationships with retailers and magazine publishers and keeping Chanel in high standing as one of the world’s great brand names, protecting its sophisticated appeal and broadening the product range, with categories such as jewelry and watches, all without taking its products on a promotional path, even in difficult times.
He was also credited with leading a careful retail expansion in the U.S. and being very selective and patient in choosing the right locations for new stores.

In an interview when he stepped down, Kopelman recalled Chanel’s expansion in the U.S., at the time with 16 of its own stores and eight fine jewelry boutiques and more than 90 retail accounts; the introduction of the fragrance Coco Mademoiselle, and the 20-month-long negotiation to lure Nicole Kidman as the new face of Chanel No.5 for a Baz Luhrmann-directed commercial.
Jean Hoehn Zimmerman, former executive vice president, beauty and fragrance at Chanel U.S., said, “Arie was my boss, mentor and guru for over 20 amazing years at Chanel. We worked so closely and were always on the same page about what was needed to be done for the U.S. company. He was a doer and a facilitator for his team, as well as a visionary. He made so many important inroads, not just for the business of beauty and fashion, but also for employees internally. He was loved and respected by everyone he came in contact with. I will miss him tremendously.”


“The interesting thing for me was that I felt I could play a role in taking Karl’s raw talent and helping market the product,” he told WWD in 2004, pulling from his war chest a Kopelman-trademarked proverbial business practice:

“If you have the right product, you can have a very good business, but if you have the right product backed by the right marketing, you can have a great business,” said Kopelman.

 

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us.fashionnetwork.com​

Chanel billionaire owners set to forgo payout amid luxury slump​

The billionaire Wertheimer family behind Chanel may forgo a payout from the luxury brand’s most recent earnings cycle in a sign the industry downturn is hitting another of the world’s wealthiest dynasties.

London-based Chanel didn’t pay an interim or propose a final dividend for 2024 earnings, according to a filing. That’s the first time since the 2020 pandemic year that the maker of expensive clothes and leather goods hasn’t earmarked a windfall for the clan’s Cayman Islands-based holding company. Chanel reported a 30% drop in profit amid heavy spending on marketing and property, and weak sales in China.

Any dividend paid in 2025 will be decided by the board in the coming months, said a spokesperson for Chanel.
The latest lean year comes after a lucrative run for the Wertheimers, who pocketed $12.4 billion over the previous three years when consumers splashed out on Chanel perfume, quilted flap bags and variants on the label’s signature tweed suits. The payouts helped propel the combined fortune of the media-shy owners and brothers Alain, 76, and Gerard, 74, to $85 billion, according to the Bloomberg Billionaires Index.

The Wertheimers are among a group of ultra-rich French citizens whose luxury goods and cosmetics empires fed their fortunes during the post-pandemic shopping boom but have since seen their wealth deflate.

They include LVMH founder Bernard Arnault, who is now world’s eighth-richest person with $156 billion after a stint at the top of Bloomberg’s wealth index. L’Oreal SA heiress Francoise Bettencourt Meyers has also dropped back to become the second-wealthiest woman after an extended perch at the top. Francois Pinault, the octogenarian founder of struggling Gucci-owner Kering SA, has seen his wealth drop by more than two-thirds since a peak in August 2021.

The absence of a shareholder payout for 2024 at Chanel coincides with a steep 43% increase in capital expenditures to around $1.8 billion, partly to buy upscale real estate. Recent purchases include buildings on Paris’ swanky Avenue Montaigne and on Rue Cambon, where the creator of the label, Gabrielle “Coco” Chanel, opened a hat boutique in 1910. The Wertheimer brothers are credited with owning equal shares in the closely held company, which they inherited as grandsons of one of the original business partners in her perfume operation.

Alain Wertheimer is Chanel’s global executive chairman and is on the board, while Gerard isn’t listed as a director. The Wertheimers’ family office, New York-based Mousse Partners, is headed by half-brother Charles Heilbronn and has been using proceeds to invest widely including buying a stake in fashion label The Row.

Chanel began publishing results seven years ago following a group reorganization that turned it into a holding company for the brand.

 

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fashionnetwork.com​

Chanel’s Bruno Pavlovsky on the arrival of Matthieu Blazy, Trump tariffs and business being better than ever​

This Tuesday, the Parisian marque kicked off the European cruise season with a smart show staged on Lake Como at the mythical Villa d’Este hotel. No designer took a bow, but the lakeside show was crammed with jewel-bedecked VICs flown in from over a score of countries - testifying to Chanel’s near intoxicating power with the world’s wealthiest one percent. An ode to movie-star chic and Italian glamour, whose muse as the great Austrian actress Romy Schneider, a great friend of Coco Chanel.

The show comes after quite a few months of criticism on social and established media of Chanel’s prices increases last year, in the midst of difficult global economy and a major downtown in luxury sales.
It’s a point of view that Pavlovsky vehemently rejects, pointing to the sheer quality of all Chanel products, and the savoir faire, workmanship and technology involved in making top-level prestige goods. While in Como, Chanel ferried scores of editors to discover key Italian producers with whom the brand works, like Mantero, the brilliant silk producer and printer.

Hence, pre-show FashionNetwork.com sat down with Pavlovsky, to hear the latest from the man charged with overseeing this vital new step in the 120-year-old brand, and shining symbol of French flair and chic.

Fashion Network: Why did Chanel come to show in Como?
Bruno Pavlovsky: It’s a mythical location that works extremely well for Chanel. It’s a place where so many films have been shot, ideal for the theme of this collection. Last week, they were shooting a feature in the villa! And half of Coco Chanel’s heart was in Italy, another reason this location is perfect.

Access to Villa d’Este is actually very hard. We needed two years to organize as we booked the whole villa for four days. But quite frankly, its terrace is inspiring to anyone who is a designer.

FN: Why are cruise collections so important for Chanel?
BP: Coco was the first to do a cruise capsule for Americans leaving for cruises in the Caribbean in the '20s. Karl was the first to stage a cruise show. Cruise is an exceptional moment where a brand is fully able to express itself and be inspired by a certain location. And, the delay of the collection – it enters in boutique in November and lasts to May and is lighter and more colorful and that adds energy to our boutiques. That’s another magical moment.

Chanel cruise 2025 show in Lake Como - Courtesy

FN: Not every brand continues to stage shows, especially cruise, especially between creative directors. Why was it important for Chanel to keep staging shows in the interim?
BP: It’s because Chanel the brand is stronger than any designer. When Karl or Virginie Viard were our designers, we never skipped a collection. Because that’s who we are. It’s not just about showing to the press, but also our relationship with our clients. I can tell you we have never sold as much ready-to-wear as we do today The client is of course influenced by who is the designer and their ideas and energy, but they buy because of the product.

We do these shows to make people dream. Certain clients, I believe, don’t even know who exactly is our designer. But they know Chanel and have certain strong feelings about what Chanel is. And we need to preserve that. That’s why we are very content to see Matthieu arrive - with his eye, his talent and his experience together with the experience of our studio.

FN: Explain why Chanel made recent investments in Italian suppliers, like Mantero where you just bought a 35% stake?
BP: One of reasons for coming to Como is that it helps us show off our ecosystem. Like Mantero for silk. It demonstrates the reality of work behind the product – the savior faire, the hands and the machines. Luxury only exists thanks to that today. Without this expertise that exists for decades, Chanel could not incarnate luxury as it does today. Forming a new generation of artisans is essential. Plus, these visits to factories gives editors a chance to understand why our products are so expensive – you see the technology and skill and time required. It’s a virtuous circle.

FN: And why specifically did you acquire 35% of Mantero?
BP: We have worked with Mantero every single year for over a half century, together developing exceptional products. Today, the situation is such that neither Lucia nor Franco Mantero have heirs.

Chanel cruise 2025 show in Lake Como - Copyright: Chanel

So, the question had to be asked what will happen with one of the most beautiful Italian manufactures, if tomorrow morning there is accident? That’s why we want to be present and help. This is not about control. To create Mantero’s exceptional silk, the investment needed is very high. So, we can help with that to guarantee Mantero makes the best prints, using less electricity and polluting less, while still making money.

We work with 67 different suppliers and plants and each brand and family has a certain rapport. Many work independently of Chanel with other luxury brands and that’s good.

FN: There has been a certain amount of negative reaction, especially on social media, to top level luxury brands increasing prices. Do you think that is unfair?
BP: Those complaints last year do take into account this ecosystem of hyper-quality required to make our Chanel products. We also need to guarantee this ecosystem exists in the future which requires substantial investment and explains why prices sometimes have to be raised.

FN: What are your plans for dealing with Trump tariffs in the U.S.?
BP: Tariffs already exist. For ready-to-wear it’s already 15%. There is not free exchange in the world. What matters to Chanel is the client and harmonization of prices. It’s very hard to predict the final position of tariffs, but the harmonization of prices will continue. And don’t forget, right now the dollar has greatly weakened, so prices will go up thanks to the dollar falling.

 

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Brand Finance

CHANEL may be the strongest brand, but Louis Vuitton and Hermès are right there behind them.

Brand Finance published its annual ranking of the top brand values in the world.

Top 5 Luxury Fashion Houses Value & Brand Strength Rating:
1 CHANEL: $34B (AAA+)
2 Louis Vuitton: $29B (AAA)
3 Hermès: $18B (AAA)
4 Christian Dior Couture: $16B (AAA+)
5 Gucci: $11B (AAA+)
6 Prada
7 Coach
8 Burbberry
9 YSL
10 Moncler
11 Givenchy
12 Celine
13 Loewe
14 Dolce & Gabbana
15 Valentino
16 Bottega Veneta
18 Fendi
19 Kenzo
20 Versace
Armani ?

Although the top 5 is not particularly surprising, the order does raise some questions. As the BSI takes into account brand recognition, perception, and revenue, it makes sense that CHANEL, which has strong indicators in all three categories, would top the rankings. Aside from CHANEL and Hermès, which are privately owned, we see LVMH's clear domination. With 6 brands in the top 20, LVMH is the most represented group, followed by Kering with 5 and Prada Group with 2.

Independent brands also have a strong footing in the ranking, with notably CHANEL and Hermès both first and third respectively, but also with Burberry, Moncler, DOLCE&GABBANA, as well as Zegna in the top 20. These brands have managed to thrive outside of the structure of the larger groups. Their independence providing them with the freedom to operate in line with only their objectives rather than within a group strategy.

Something ought to be said about the presence of Versace as the 20th most valuable brand, whether this be as the reason for, or as the consequence of, the Prada Group's acquisition is unclear.

 

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CHANEL debuts new line of business – waste management and recycling​

Posted On June 9, 2025 CPP-LUXURY

CHANEL is launching an unconventional new line of business: waste management and recycling. On Monday, the company announced the launch of Nevold, a new, independent venture focused on developing end-of-life solutions for textile offcuts, unused fabrics and unsold or old products.

The move comes amid growing concerns about the volume of waste created by the fashion industry. Though often portrayed as a fast-fashion problem, luxury goods mass-produced in the millions of units also have an impact. Over the last decade, the value of unsold inventory held on the books at luxury giants like Kering and LVMH has reached into the billions of dollars.

Regulators are paying attention. New rules, led by Europe, are set to make brands more responsible for waste generated by their businesses and crack down on luxury’s historically favoured solution: simply destroying unsold goods.

Chanel said its bigger concern is resource scarcity. Many of luxury’s most prized fibres, like top quality cashmere, silk and leather are under threat from climate change, making the raw materials tied up in last season’s ready-to-wear a valuable future commodity.

“It’s becoming more and more important and more and more strategic for us,” said Chanel’s president of fashion Bruno Pavlovsky. “If we want to continue to exist and to do what we are doing, we have to anticipate and to see how we can rethink this idea of materials and raw materials.”

Chanel has been building up to Nevold’s creation for several years, starting to invest in the space in 2019. But now it’s ready for a hard launch, with ambitions to scale the vertical into a B2B service provider and R&D hub focused on developing circular solutions for the fashion industry.

CHANEL has already built up a manufacturing division of more than 50 specialised factories and ateliers in a decades-long push to future proof its supply chain. Investments include embroiderer Lesage, feather-and-flower specialist Lemarié and hat maker Maison Michel.

These make products for the brand, but also provide services to other fashion businesses. The company has brought on engineer and former LVMH executive Sophie Brocart to oversee operation and expansion of the new division.

Long-term, the ambition is for Nevold to be part of a “profound transformation process that is rethinking the entire product lifecycle, developing new savoire-faire and professions… and contributing to a more circular economy,” the company said in a press release. It’s a leviathan of a problem and at present Nevold is little more than a minnow.

At its core are three companies Chanel has set up or acquired over the last few years: recycling agent L’Atelier des Matières, which connects brands to an ecosystem of optimised solutions for their textile waste, unused fabric and unsold inventory; 50-year-old spinning mill Filatures du Parc, which specialises in yarns made from recycled materials; and leather recycling specialist Authentic Material.

The idea is the companies will hoover up the waste generated by Chanel and other clients and turn them into “new materials for tomorrow” that can be used by the maison, but also sold to other brands and industries. “It’s not about Chanel recovering her waste to do Chanel,” said Pavlovsky. “It’s Chanel recovering waste from Chanel and from whoever on the market who [is] ready to sell us the waste to recreate a new kind of materials.”

Nevold is eyeing acquisitions to accelerate its current capabilities and exploring partnerships with other sectors, like sports and hospitality, to guarantee a second life for materials that no longer meet the standards of the luxury market, Pavlovsky added. For instance, so far the company has found recycling leather back into a material suitable for making a high-end handbag is a nonstarter, but the end product could be used to replace common plastic, like high heels and reinforcements for footwear and handbags.

Chanel is not the only luxury giant dabbling in the space. Last year, LVMH said it spent an estimated €200,000 ($225,000) to support the development of closed-loop recycling systems capable of turning old materials and unused stock back into new fabrics and yarns for its fashion and leather goods houses. It expects to increase its level of investment to €300,000 this year. Gucci-owner Kering has put money into French recycling business Revalorem and resale site Vestiare Collective.

Whether these efforts amount to more than some green window-dressing for businesses that generate many multiples of these investments through the sale of new products that contribute to the very problem they’re trying to solve will depend on how they scale.

Critics argue that the fashion’s interest in recycling will do little to curb the industry’s impact if companies also continue to pursue growth by churning out more and more units. This is especially true if brands turn to recycling as a tool to manage overproduction and dispose of excess inventory. Mass market brands like Nike have already come under fire for shredding brand new products they couldn’t sell in recycling plants.

The move also comes as luxury sales are suffering from Trump’s trade war and growing consumer skepticism about the value proposition offered by brands that have ratcheted up prices without corresponding innovation. Chanel, which made some of the industry’s punchiest price hikes, saw sales drop last year for the first time since 2020.

Pavlovsky declined to disclose how much Chanel has invested in Nevold so far, or the level of spending the company expects to devote to the business going forward. Until the business is more developed it will be a cost centre, not a profit maker, he said. “We still need to invest money,” Pavlovsky added. “It’s a new business. It’s not a big business, but it’s something I believe that we’ll talk more and more about.”

CHANEL

 

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WWD​

Chanel Names Global Chief Communications Officer​

Former Edelman executive Ruth Warder will join the French fashion house's global leadership team in London.
ByJOELLE DIDERICHPlus Icon

JUNE 12, 2025, 9:42AM​

Ruth Warder COURTESY OF CHANEL

PARIS — Chanel has named Ruth Warder as global chief communications officer, a newly created position based in London, effective in September.
Warder, who was most recently chief executive officer for the U.K. and Ireland and EMEA brand chair at global communications firm Edelman, will report to Leena Nair, global CEO of Chanel, as part of the global leadership team, Chanel said on Thursday.
“Ruth is a highly accomplished and globally recognized expert in successfully positioning brands within an increasingly complex and fragmented communications landscape,” the house said in a statement.

“Building on the strengths of Chanel’s existing global communications teams, she will continue to develop a cohesive, proactive reputation strategy and amplify our voice as we grow our positive influence and impact in the world,” it added.

The nomination comes as Chanel charts a new path under the creative direction of Matthieu Blazy, while navigating a global slowdown in luxury spending. The French fashion house said revenues fell 4.3 percent at comparable rates to $18.7 billion in 2024, following several years of strong growth.

Warder joined Edelman in 2013 and has experience across the tech, retail, entertainment, luxury and FMCG sectors. She is credited with introducing new specialisms at Edelman in the fields of workplace advisory, sustainability and AI, while driving the company’s strategy on topics including DEI and leadership development.

Prior to that, she was managing director at Jackie Cooper PR, and she started her career at Freud Communications.

Meanwhile, Michael Giugliano, former head of brand expansion at Bottega Veneta, confirmed on Instagram this week that he was starting at Chanel.

WWD reported in April that Blazy, who officially started on April 1, was building out his team and looking to bring Giugliano on board. A spokeswoman for Chanel said Giugliano would head its celebrities team and would be based in Paris, but did not confirm his exact title.