Sunday, 2 November 2008

Chanel is an Apple - 1/11/08

Maureen Chicquet, the Global CEO of Chanel describes Chanel to The Economist, when she came to it, as an apple: "beautiful underneath, but it needed to be dusted off a little bit". Ripe words, the outside objective eyes are always important for any business but particularly one as historic as Chanel, it is a brand steeped in wonderful history, with incredibly luxurious products. It has survived many challenging economic times in the past, the true test lies ahead.

Being a privately held company, this coupled with the security that one buys when purchasing product from the brand, should provide Chanel with greater fortitude for the coming year compared to other luxury brands. More mass produced luxury brands and products, may find the next year more challenging as disposable income begins to dry up.

Where to from here, Chicquet says the Company will have to "get smarter and more aggressive in some ways about how we're going to spend our money". How this translates will be interesting to see and in what areas we may see this in.

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury,