WWD Reports: 2007 was Chanel's most profitable year *ever*

  1. I'm not surprised. I paid 1695.00 for my white caviar jumbo Dec 2006. As of Nov 2007, it's 2650.00 1K price increase in 1 year will definitely yield a pretty penny. The quailty hasn't gotten any better, so we all know the money isn't going into better QA.
    Another contributing factor was probably the scramble to scoop up as many classic bags as possible before the Nov 2007 price increase.
  2. And remember the market has just started the nosedive, so let's see if they can keep those bragging rights through '08. (I know, such a cynic.)

    I am guilty of adding purses to the collection before the rate hike; however this year it's a horse of a different feather, er I mean color. This year I'm waitlisted for one. (My mantra for '08: one and I'm done.)
  3. Hmmm ... I think I've done enough damage to my wallet already this year so I won't be contributing to their bottom line after January. :nogood:
  4. LOL, I'm a cynic too. :roflmfao: I rushed out to buy a few classics before Nov as well. With all the rumors of another astronomical price increase in the near future, I won't be selling any of my classics. I'll just sit on them and think of them as an investment.
  5. Mine too (or at least I am gonna try:p). But then again, I said that at the end of 2007. Soon after saying that, I decided I HAD to have the purple reissue:love:
  6. Well with those ridiculous price increases, I'm sure they had a FANTASTIC year!
  7. Yes, I think you're right about that, Jenn :yes:
  8. All congrats go to Chanel's American Ceo Maureen Chiquet (formerly of the Gap), her crack marketing research team and the customers who helped her achieve her goal. She just celebrated her one year anniversary this month as the CEO and managed to achieve what she set out to do. And that is to EXCEED the prior record breaking profits of more than 4 billion a year. :yahoo:

    Excerpt from an article: March 19, 2007
    "Since Lagerfeld took over Chanel, in 1983, more than a decade after the death of its founder, Coco Chanel, it has become one of the most profitable luxury brands in the world, with revenues estimated at more than four billion dollars a year. The company is privately owned and does not release earnings figures."
    New Yorker article - http://www.newyorker.com/reporting/2007/03/19/070319fa_fact_colapinto

    Excerpt from an article: March 19, 2007
    Chanel's new global CEO, 43-year old Maureen Chiquet is targeting "new wealth" customers. "More and more customers are acquiring wealth at earlier ages," Chiquet says, "defining wealth as a net worth over $1 million." These women have more cutting-edge fashion tastes."
    Chanel's American In Paris - http://www.businessweek.com/print/globalbiz/content/jan2007/gb20070118_532070.htm[/QUOTE]

    And with each increasing price hike, the bags continue to sell at a frenetic pace! Guaranteed.

    Chanel has proven that regardless of their demented prices increases, their goods will fly off the shelves no matter what. So count on the prices going up yet again in 2008. :yes: There is no deterrent to stop Chanel from this clever marketing strategy (increasing prices ad infinitum) as it has proven to be successful for them, not even an economic downturn.
  9. [There is no deterrent to stop Chanel from this clever marketing strategy (increasing prices ad infinitum) as it has proven to be successful for them, not even an economic downturn.] quote

    Is that the clever marketing strategy???? Increasing prices?
  10. Apparently so. They managed to break & surpass their prior record breaking profits. With each subsequent price increase, the bags sell at a frenetic pace. With each pending increase, the quarterly report is so in the black, even beyond their wildest expectations I'm sure. But YES is the answer to your question.
  11. I find this all so depressing.
  12. The one and I'm done -- that's the purple reissue to replace the jumbo I sold at Christmas. If by some weird turn of events I don't get one, then it won't even be one and I'm done. I'm done.

    That said I can hardly wait til '09. It's like the long await sequel: Will Ms. Thing From the Gap be so celebratory next year? (If Chanel suffers losses, I doubt it will be "leaked out" in WWD.)

    "These women have more cutting-edge fashion tastes." Does anyone find the phrase insulting. If you don't make $1 million a year, then one has less fashion sense. What can you say positive about someone who makes that remark?
  13. Generally, high end stuff tends not to suffer from bad markets as much as the more moderate stuff that lower and middle income folks may gravitate to when they've got extra money in the bank. It's not the people paying $2500+ for handbags that suffer (unless they really can't afford to be spending $2500+ for handbags and do it anyway...or bought them under the assumption that their houses would double in value in the foreseeable future when they're worth less than when they were when purchased two years ago). Besides, Chanel has waiting lists for so many of their bags that losing a few customers during a recession probably won't affect their bottom line. Chanel doesn't seem to be too interested in making enough of their bags to satisfy their customers when they CAN afford them!
  14. Interesting thread! What happened to the luxury goods market last time there was a recession? I'm not entirely sure of the history of economics but let's see if history repeats itself. As long as Chanel's classic bags don't fall apart, I will still be buying a couple down the track despite the price increases.