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SMMC G4 [TP Final]_Chanel, G4 (Mandy, Wendy, Thalia, Allison, Charlie,…
SMMC G4 [TP Final]_Chanel
About Chanel
Internal Assessment
SWOT analysis
Weaknesses
High prices
Customer with good financial
No online store
Products can't purchase online
Market growth
Limited market growth
Bad at integrating firms
Not highly successful at integrating firms with different work culture
Opportunities
Online store
Shop all around the world
New products and services
New trends can open up new market
Emerging markets
Latin America and Asia Pacific
Strengths
Product innovation
Successful track record of developing new products
Employees
One the most famous designer in 20th and 21st centuries Karl Lagerfeld
Signature style
Classic and timeless design
Strong free cash flow
Their financial statement showed a significant increase in capital expenditures and the free cash flow
Strong brand value
Highly established luxury brand
Reliable supplier
Own a reliable supplier of raw material
Threats
Counterfeit
Decrease the sales
Copying
Much cheaper and affordable prices
Strong competition
Compete with other luxury brand
Chanel's
Key Activities
Invested in a number of manufacturing and production sites
a wholesome ecosystem
Built in-house creative teams and designers
Leverage the depth of knowledge and strength the relationships
Focus on long term development
to take slower, more deliberate approach to new product development
deliver products that are both desirable and sustainable for customers
Key Resources
Tangible
Strength supply chain materials
Investment
Holds 40% shares of the leather accessories manufacturers
Aquasition
Acquisition of majority stake in French premium sheepskin
manufactures
Expansion
Expand the Leather laboratory and train the technicians
Intangible
Human capital
Designer: Karl Lagerfeld- The most prolific designer of the 20th and 21st centuries
Introduction
Mission and vision
Vision
Reinventing fashion by transcending conventions, creating an uncomplicated luxury
Mission
"To be the Ultimate House of Luxury, defining style and creating desire, now and forever."
Product
High jewelry
Watches
Fine jewelry
Eyewear
Clothing, handbags and accessories
Fragrances
Makeup
Skincare
Haute couture
Background
a luxury company that focuses on high fashion and ready-made clothes, luxury products, and accessories.
Founded in 1909 by Gabrielle Bonheur Chanel
About Fashion boutiques industry
5forces
Entrants
High barriers to entry
Low barriers to entry
Competitors
Fashion and fragrance
Improve their competitiveness
Substitutes
Perfume
Body Lotions
Body Sprays
Hair mists
Buyers
Reduce the bargaining power
New products
Known for high prices
Suppliers
Using different materials
Spread all over the world
Definition
Source of the accumulation of creativity or culture
Narrow sense of the fashion industry
Broad fashion industry
Corporate scope
Horizontal integration
Alliances partners
Renato Corti
Chanel bought a 40% stake
Mabi
Chanel acquired a 40% stake
Dassault Systèmes
Technologies and virtualization
Globlization
Strategy differentiation
Store
Japan
Wafuku
Taipei
Regent Taipei
Amsterdam
Crystal house
Price
Unique pricing strategy in Europe and China(in case the customer earn the price gap by buying the products back and then resell)
Challenge
Fake merchandise
Political issues make market unstable
Tariff barriers
Sales Channel
Online store
Augmented store
MNE
Global standardization strategy
Has an appeal in its national origin
Providing incredible customer service
Focus on the clients
Vertical integration
Acquisition
Embroidery workshop
Feathers supplier
Ornamentation and buttons supplier
Alliances partners
Farfetch
A series of digital initiatives in-store and online
Chanel-luxury retailing
Augmented Retail
Sophie Hallette
Perpetuate the historical lace sector
Maintain a unique know-how and the essential Leavers in France
Performance and objectives
Objectives
Modernize
Green Future
Upgrade
Cooperation with the shopping platform
Performance
World ranking
2019 Best Global Brands NO.22
2019 BrandZ Valuable Global Luxury Brands NO.2
2019 The most popular luxury brands in the world NO.2
Financial statements
Prove the strength of the Chanel brand
Reject the rumor that Chanel will sell their equity
Problem & Suggestion
Challenge
Lack of e-commence
2018: Lunched long-term partnership with online fashion retailer FarFetch
Improve the digital innovation level of customer service.
Strengthen the brand's contact with customers
2019: Boutique of Tomorrow APP
pandemic
Chanel has closed all its stores in Europe and the US
Luxury brands go “dormant”
Won’t have extra inventory, and be forced to offer discount
Controversy
Pollution
Chanel Mission 1.5°
Reduce its carbon footprint
Help accelerate the transition to a lower carbon world
Invest strategy
In 2018, Chanel invests in Sulapac startup which has developed a biodegradable plastic that can reduce pollution.
Animal welfare
Ban fur and exotic skins
Faux fur and vegan leather nearly indistinguishable from animal pelts and skins
No reason to breed and kill animals for fashion.
Some people still support the real animal fur
disposed of in a landfil
completely degraded after 500-1000 years
disposed of by incineration
produce harmful smoke to the environment
Suggestion
Young customer base
Convey the brand value
Influential celebrity
Crisis management
Product line
move some of it's factories to different contries
Diversified investment
Should not focus on one market
Product
More focus on sustainability
The end of “extreme consumerism”
G4
Mandy
Wendy
Thalia
Allison
Charlie
Emily
