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.