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    Top Companies Report

    16. Chanel

    ...

    08.02.13
    France
    www.chanel.com

    Sales: $2.0 billion (estimated)

    Key Personnel: Maureen Chiquet, chief executive officer; Ava Huang, senior VP, fragrance and skin care marketing.

    Major Products: Fragrances—Chanel No.5, Allure, Allure Homme, Coco, Coco Mademoiselle, Chance, No.19, Cristalle, Pour Monsieur, Antaeus, Egoïste, Les Exclusifs, Bleu de Chanel. Skin care—Sublimage, Ultra Correction Lift and Line Repair, Hydramax + Active, White Essentiel, Le Blanc, Hydra-Beauty. Color cosmetics—Rouge Allure, Rouge Coco, Le Vernis, Inimitable, Inimitable Intense, Les 4 Ombres, Vitalumière, Joues Contrastes.

    New Products: Les Beiges makeup, L’Ete Papillon de Chanel Summer

    Comments: Two years after consumers started returning to the luxury market, Chanel is well positioned to take advantage of their thirst for exclusivity. While other luxury houses watered down their brands to appeal to a wider range of shoppers, Chanel managed to maintain that aura of exclusivity—even if it meant arriving late to the party in China.

    During a presentation in New York City earlier this year, CEO Maureen Chiquet said that although Chanel has a dozen stores in several mainland China cities, the company will not be rushed, noting that things in China, especially distribution, move quickly and that she was determined to find quality locations.

    “We don’t have the urgency to expand,” she told the audience. “We are an exclusive brand and we want to stay exclusive. So it’s strategic to not be everywhere.”

    Not when you’ve built a multibillion-business on the shoulders of the world’s best-selling fragrance, Chanel No. 5. The juice has been promoted by beauties such as actresses Catherine Deneuve and Nicole Kidman. Last year, Chanel broke new ground by signing Mr. Angelina Jolie, aka Brad Pitt, to promote the timeless classic. But the ad, which has been called rambling and inscrutable, didn’t fare so well. Much better is a video on the history of Chanel itself, which can be found at the company’s website.

    On the skin care front, the company hired well-known dermatologist Amy Wechsler who identified five skin care mistakes women make:
    • Getting too little sleep;
    • Neglecting to cleanse and moisturize;
    • Tanning;
    • Overdoing exfoliation; and
    • Skipping sunscreen.
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