Since most of Chanel's goods are only available in-store, are they just taking a massive beating this month? If this situation persists, do you think they will open up online sales? Just curious 
How is Chanel making money right now?
- Thread starter ladybug333
- Start date
They aren't. Hermes isn't either. Even tho there are a few things online, those won't ship out until the lockdowns are lifted. Entire production for LV, Chanel, Hermes, etc is completely shut down in France, Spain, Italy which means fall lineup isn't even being produced, and summer hasn't even all shipped out yet, if any. Most are giving their employees 2 weeks pay, but I don't think that is sustainable for much longer. I do know sales are still going in many places in Asia that never shut down/ or have reopened but with production down inventory will become scarce. But biz in Asia has been declining lately so not sure how those markets will respond. Might change entire luxury facade permanently if this goes on too long. Lots of good discussion and articles on WWD and BoF sites if you're interested in perusing!
I noticed when I was like... ok what’s going to happen, this is a mess. That other people were talking about it too! So lots out there to keep you busy. I am reading now more than ever that’s for sure
Retail is a bellwether for EVERYTHING!!Haha totally! Love the intersection of business and fashion...and meeting like minded individuals!
Chanel gave 3months off to staff not 2 weeks in the UK at least
Wow, excellent question!Since most of Chanel's goods are only available in-store, are they just taking a massive beating this month? If this situation persists, do you think they will open up online sales? Just curious
You mean their staff is on paid leave for 3 months? If so, that's very nice of Chanel.
Bet they are cash rich, they can weather through this.
Chanel also has perfume and sunglasses, that I believe are sold in retail stores, so they might still be making a bit of money there.
Good point about perfume and sunglasses, those retailers have dwindled for the time being too. I did read about price increases post 2008 recession being motivated to stockpile funds/ insulate themselves financially for a rainy day. Chanel has been increasing prices/ mass producing/ moving to 100% machine/ using less quality materials etc for awhile so they may well have insulated for something like this. I like that they are paying their UK employees for 3 months, but that also means they know they will be closed for 3 months? I guess we don't really know here, but all I do know is that for right now it's only 2 weeks.
On a side note, I have only seen where Kering (Gucci, YSL) and LVHM (LV, Dior) of the big big houses are contributing, doing something to give back or help during the pandemic. I think I did see Valentino yesterday Has anyone seen anything else?
On a side note, I have only seen where Kering (Gucci, YSL) and LVHM (LV, Dior) of the big big houses are contributing, doing something to give back or help during the pandemic. I think I did see Valentino yesterday Has anyone seen anything else?
Companies should have some "padding" or "emergency funding" available if they are "financially healthy" in case things like these happen (yes it's a rare occurrence, but when it happens one better be prepared for it!) --just like individuals who are saving for a "rainy day". Will they sell online? That would depend on how long this crisis will last and how much money they have saved for this type of thing.Since most of Chanel's goods are only available in-store, are they just taking a massive beating this month? If this situation persists, do you think they will open up online sales? Just curious
Re: online sales- it just seems too risky for both parties, at least the high ticket items.
I read a post where a member ordered a celine bag and it was scratched upon arrival and she had to fight tooth and nail to get her money back bc they blamed her for the scratch.
I read a post where a member ordered a celine bag and it was scratched upon arrival and she had to fight tooth and nail to get her money back bc they blamed her for the scratch.
I don’t think they will have price increase this year, it would a little be weird and disrespectful after all this situation.
After all this Covid-19 quarantine, after all this suffer, people will spend like crazy on Luxury goodies to enjoy life. I’m saving right now but I want to buy a Chanel bag as soon as possible, life is one and we have to remember this right now. Ok, there are more important things than luxury goodies but they make me so, so, so happy