Sunday, 18 January 2009

CHANEL to grow but at slower rate - 18/01/09

CHANEL a private company owned by the Wertheimer brothers does not reveal its numbers publicly, however the House's Global Fashion President, Bruno Pavlovsky in an interview with AFP on Friday 16th January, stated; "For 2009 we expect a growth slowdown," he said, but added that "this will not be negative growth." He anticipates this to be down from the double digit global figures to single digit.

CHANEL is a luxury brand with an incredible history, spanning almost 100 years, it has survived many volatile and dynamic economic situations. Such a highly coveted brand with a mixed portfolio of product and well structured financial model has a greater chance of survival than other brands that have grown quickly for the sake of shareholder returns. There are also some brands with a great history but a more recent revival, a lot of their recent growth has been based on 'new recruits' and their first purchase into luxury. As disposable income is shrinking, this leaves some of these brands more exposed to the current financial crisis than others. With age comes wisdom and respect, we believe this is the case for Chanel.

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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, www.moluxury.com.au