Image: Chanel via Unsplash
Chanel's CEO, Leena Nair, has denied rumors of the company considering an IPO. In an interview with the Financial Times, Nair confirmed that the French luxury brand will continue to operate as a private and independent company.
Ownership of Chanel is split among members of the Wertheimer family, who have been associated with the company since the 1920s. Alain and Gerard Wertheimer, grandsons of one of the original owners, control the company. Nair was appointed CEO in January 2022.
Nair also emphasised Chanel's commitment to sustainability, stating that the company must encourage customers to buy less but of better quality in order to "decouple" revenue growth from sales volumes. Chanel plans to invest in carbon capture technologies to reduce its carbon footprint.
Chanel, like other luxury brands, recognises that its customers seek more than just a product. The company has prioritised delivering exceptional customer experiences, including opening private salons for high-spending customers, to differentiate itself from competitors and create deeper emotional connections with its customers.
Since the pandemic, Chanel products have seen stiff price increases, with some handbags now costing more than 70 percent compared to 2019 prices. In response to competition, luxury brands are investing heavily in providing outstanding customer value to justify the high prices to their customers. According to data from Bain & Company in 2020, even though luxury shoppers make up only about 10 percent of the global population, they account for roughly 60 percent of total luxury sales, indicating that this minority group is highly influential and valuable for luxury brands.
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