Wednesday, 31 December 2008

Chanel reduces headcount at Paris HQ - 30/12/08

As reported by Reuters online, the historic and quintessentially luxury Parisienne House of Chanel is ending some 200 temporary contracts. We believe this represents a relatively small percentage of the head office headcount. Not such a happy new year for some.

Chanel, being a private company does not have its financial status scrutinised by shareholders and the public alike, as do many other luxury brands. The Wertheimer family, owner's of Chanel have been able to operate and maintain this successful international business as a private one to-date, so for this and the announcement of the Mobile Art Exhibition to cease, rings a small bell, (with a leather entwined chain). The real story is on the inside, however as the brand has strong foundations, extraordinary history and immeasurable brand equity, we are confident of its continued success.

As all good businesses do when times are tough, they reign in expenses that will not ultimately effect the creativity, quality and uniqueness of their product. They go back to their roots, perhaps somewhat nostalgically.

No comments:

Who's behind the MO DOWN

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, www.moluxury.com.au