CHANEL
BRAND VALUES The history of this brand dates back to 1955 when Coco Chanel relaunched the 2.55 Handbags in a re-designed version we now refer to as the Chanel Classic Handbag. The launch of the Classic Handbag created a major shift in the history of handbags, which is why I have chosen to do my report on the Chanel Classic Handbag. For the first time ever in the history of handbags, it was acceptable for women to hold their bags on their shoulder1. The Classic Handbag has its long history in every detail of the design, revolving around Coco Chanel herself, setting an emotional background to the trademarks give the brand a deeper and more meaningful value to consumers.
classic
BRAND PERSONALITY
Rex USA/Courtesy Everett Collection
Chanel wanted to make sure The Classic Handbag was worth having in everyone’s wardrobe. Clear personality can be seen in the context of the design. Gabrielle Coco Chanel designed the bag with a hint of her romantic lifestyle, sweet-bitter memories of her past and an approach to revolutionalize the female handbag history. Lover, Outlaw and Innocent would be the three brand archetypes I’d use to describe the Classic Handbag; intimacy, the connection between her juicy secret love life embedded into a function reminds the consumer of their youth romance, the liberation of a modern working woman describes the consumer as a female who doesn’t play by the laws of social stereotype and last the safety sense of great taste in simple design.
HOW
WHY
DO THEY
COMPETE?
WHAT
DO THEY
EXIST?
To increase its value Chanel did not just label the Classic Handbag as a modern and timeless handbag but it became fashionable investment for the elite. Chanel Classic Handbag debuted with a price of 330AU$, the price and value have continually gone up and since 2008 Chanel have increased 10% of the price 2-3 times a year2. To the rich and elite, the Classic Handbag was more than company stock or expensive jewellery, it is an investment you can actually wear. Knowing what it is worth, people rarely sell their Classic Handbag, creating a continuous demand on the item.
THEY?
“ To be the Ultimate House of Luxury, defining style and creating desire, now and forever.6 ”
Shoulder handbag, providing optional straps with premium craftsmanship.
HO W SENSE OF ACHIEVEMENT
BR
SELF ACTUALIZATION
AN
D
M
SELF-SATISFACTION
NS FE
AESTHETICALLY PLEASING
ER
INNOVATIVE
UM
SYMBOLIC
S O C
UNIQUE
KE
E
MER DESCRIBES TH U S EB N RA CO ND W HO
A
TH
AUTHENTIC
ARE
EL
FULFILLED
HIGH QUALITY
LUXURY
EXCLUSIVE
ARCHITECTURE HIGH STATUS
SIMPLISTIC
ELEGANT
AFFLUENT
CHANEL H AU T E CO U T U R E
FA S H I O N
F I N E J E W E L L E RY R E A DY - TO - W E A R
2 . 55 H A N D B AG
C H A N E L ’ S GA B R I E L L E B AG
H A N D B AG S
WATC H E S ACC E S S O R I E S
F R AG R A N C E S
MAKEUP
SKINCARE
EYEWEAR
B OY C H A N E L H A N D B AG
C H A N E L 3 1 H A N D B AG
PORTFOLIO The Chanel parental brand produces good in the field of fashion, jewellery, watches, fragrances, makeup and skincare. However, their main market segment focuses on fashion apparel. Their handbag and tweeted suits are the most iconic of them all. This project is a research on the Chanel Classic Flap Handbags. Chanel is most successful in defining the brand position of the Classic out of all the successful handbags. This design has been on the market for almost 70 years and the demand only rise and rise. Therefore, to me, their marketing strategy is most interesting in every product launched by the company.14
MARKET SEGMENTATION DEMOGRAPHIC Age
18-36
Gender
Female
Income
High
Ethnicity Occupation Marital Status
Asians/Europeans/Americans Business Women All
GEOGRAPHIC
P S YC H O G R A P H I C
More retails are located in Europe and the UK in comparison to Asia. As the workshop that produces the Classics are located in France.
Scocially Aware
However, they are internationally available in most luxury department stores and hi-end shopping streets. The Haute Couture Classics and other special editions will only be sold in European stores while as the Asian retails will offer a much more simplistic textiles and colours.
Visible Achievement Young Optimism Real Conservatism Something Better Look at Me Conventional Family Life Traditional Family Life A Fairer Deal Basic Needs
B E H AV I O U R A L - Love for simple but elegant fashion. - Once in a lifetime investment. - Consumers who wish to feel unique or exclusive. - Item is used on special occasions
BRAND PERCEPTION
modern
simple
The style belongs to another period, but it has survived and adapted itself. To give women a modern attitude that didn’t exist before.12
“ Simplicity is the keynote of all true elegance.10” - Gabrielle Coco Chanel -
“Fashion changes, but style endures10” - Gabrielle Coco Chanel An iconic piece to finish up the look, they can be worn with modern day simple piece of clothings.
Instagram: @steffysstyle
elegant “ A woman can be overdressed but never over elegant.10” - Gabrielle Coco Chanel -
bikinisandpassports.com
bikinisandpassports.com
“ My mother has a small, bright red, classic Chanel evening bag, which I used to wear around the house when I was a little girl. I feel Chanel shaped my understanding of elegance as I was growing up: it makes me think of little black dresses, beautiful flowing evening gowns, and little chains hidden inside the lining of tweed jackets.7” - Poppy Delevingne, 25, Model -
“ Chanel bags are stunning and they are renowed for being the best in luxury business, rivalled only by the house of Hermes. Personally, Chanel is my brand of choich, the luxurious leather, the distinctive CC hardware or even the understated glamour of the reissue turn style lock. Chanel commands and demands attention!8 ” - Sarah Elizabeth | March 30 2018 -
“To be the Ultimate House of Luxury, defining style and creating desire, now and forever.” “ When you think of Chanel, you think of the Classic Flap Bag. And when you think of the Classic Flap Bag, you think of Chanel. They’re linked together and inseparable. Every element on the Classic Bag represents the house because they’re made for a reason – there is a story behind it.11 ” - THE POSH | January 3 2018 -
“ If I could only own one handbag, it would be the Chanel medium flap in black. I love that it goes with casual and dressier outfits, for my lifestyle it is perfect for running errands, sightseeing or a fancy night out. I think the medium flap is an iconic bag that is a timeless addition to a classic wardrobe, I don’t think I could ever get rid of it! ” - Steffys Style | March 15 2019 -
BRAND IMAGE
- Timeless fashion, the classic flap becomes a classic must-have item, it doesn’t go out of style.
- Consumers from online channels. Some hi-end brands does not allow you to order their handbags online.
- Guarantee increase in financial value, price will only increase never drop. - Great brand value, people willing to buy samaged product or secondhand for a great price. - Strong emotional attachment to owner, consumers see it as a precious luxury. - Strong tademarks, people can recognize it even if only one trademark is seen.
- Adaptable to the current trend. New collection means new definition of the Classics. - Lack of material or style choice compared to other product lines. - Very little room for expansion, since they have to keep many traits. - Very little distribution channel. There are very limited retails, the product is exclusive to the retail, and retail is exclusive to luxury malls. - Certain designs are sold in certain retails, their product line is not consistent in every retail.
- People willing to pay at great price. Since the item is viewed as a good investment.
- Intense competition, many luxurious brands are developing their classics. - High-quality duplicates in the market, this may tarnish their reputation. If item is seen too much, then it doesn’t seem ‘special’ anymore.
MARKETING MIX
PRODUCT
PRICE
P L AC E
P R O M OT I O N
Generically, the Classic Handbag securely hold your belongings together. With this range of price, customers would expect no less than high-quality material and flawless craftwork. Emotionally, holding the Chanel Classic Handbag will instantly portray you as an upper-class lady, since only limited people can afford to own a Chanel bag.
The Classic Handbag used the technique of Price Skimming, as it is seen as a hi-end product, they never go-on sales and is limited in stock. In terms of price-elasticity, this handbag is in-elastic, price of a medium Classic Handbag majorly increased from 4000AU$ back in 2009 to 8010AU$ (current price) in under a decade2. While this continuously increases the product is always on demand as it is seen as an investment amongst collectors2.
A Classic Handbag is exclusively sold only in a Chanel retail store or the official website. Despite the excessive-high price, they are usually sold-out.
Their main source of communication is through their collection launch in Fashion Shows, these are usually an invite-only to which the guests will be mainly the important people in the fashion industry and the presses4. Chanel would then launch the video of the fashion show and the collection on their website news and announce this through their social network sources such as; Twitter, Facebook and Instagram.
1
2
3
P R O D U C T C H A R AC T E R 1. Outer Flap Zipper - Coco Chanel had an affair, she used this to store her secret love letters3. 2. Inner Lining - Usually burgundy since it was the colour of her orphanage school uniform3. 3. CC Clasp - replaced the original “Mademoiselle Turnclasp� in 1980s. 4. Iconic Chain - Metal chain with leather woven, introduced by Karl Lagerfeld in the 1980s. 5. Double strap option - Originally designed to allow working women to have both hands free. 6. Diamond Quilting - became a synonym for chanel. 7. Continuous lines - neat caftsmanship. 8. A Play of Textures - This evolved through time according to the theme of each collections.
6
7
4
8
SPRING 2019 HAUTE COUTOUR
Karl Lagerfield creates a come-to-life beach runway on the Spring 2019 Haute Coutour, introducing the new bright and textured Classic Handbag and many others. The Classics have evolved through time and can be altered to suit certain collections, just by maintaining the CC Clasp and the frontal flap, it can easily be recognized.
Karl Lagerfeld (2018)
P R O M OT I O N
THE SPRING 2018 COLLECTION
Imaxtree (2018)
In April 2018, Chanel released a Spring 2018 Handbag Collection Campaign. The campaign features a collection of photos of Kaia Gerber lounging in Coco Chanel’s couch with the Spring’s Collection set of handbags including the Classic taken by Karl Lagerfeld himself and recordings of four high-profile women discussing their handbag stories over an interview5.
S A L E S OV E R T I M E
P R O D U C T L I F E CYC L E
KEEP UPDATING
FULL SCALE LAUNCH (1955)
- Successfully established Brand Identity and trademarks.
- Risk of failure is not so high, since this is a rebrand of the 2.55 Handbag, it already has a market waiting for it.
- Stopped the aggressive advertisement.
- Not much competition in the female luxury market. - Frequent modification is needed.
AGGRESSIVE COMMUNICATION - Profit reach its peak. No more competitors.
- Longest stage of the life cycle, the Classics continue to feature in certain collections with new alterations added to the model design.
- Aggressive magazine advertisement campaign. Vintage style.
PRODUCT EXTENSION (2000s) - Continuously increase 10% of price 3 or more times a year. - Establish elite and exclusive Brand Perception. Product is not mass produced. - Time-to-time they would feature a video of the handscraft to add high quality to the Brand Image. - Some campaigns on the Classic Handbags. But very few.
INTRODUCTION
G R OW T H
M AT U R I T Y
DECLINE
K E Y CO M P E T I TO R S
S
DIOR L A DY D I O R
- Strong Brand name and world-wide reputation. - Recognizable symbolic trademarks. - Exclusive to Upperclass Ladies.
- Create more demand with exclusive design. - Expansion in international markets. - Strenghten online distribution channel. Official website should allow us to oder.
O
W S
- Accessibility limited to US, Europe, Japan and some parts of Asia. - Doesn’t appeal to younger generations.
- Uncertainties to international market. - Strong Competition. - Increasing number of new classic designer handbags. - Fake imitations can damage brand reputation.
CELINE LU G GAG E TOT E
W
- Recognizable symbolic trademarks.
- Weak appearance on social media.
- Exclusive to Upperclass Ladies.
- Website not user-friendly.
- Appeal to younger generations.
- Minimalistic design, goes with the ongoing fashion trend. - Strenghten online distribution channel. Official website should allow us to oder.
T O
- Changing of media source trend. Not strong on social media. - Fake imitations can damage brand reputation. - Strong Competition.
T
mass market
exclusiveness
PERCEPTUAL MAP outgoing elegance
2018 TREND
TREND RESEARCH M O D E R N I T Y, E L E GA N C E A N D S I M P L I C I T Y. The Chanel Classic Handbags have been altered according to the three terms for over 70 years. Maybe by catching onto this trend, it may emerge a whole new perception to the limitations of the trademark. How far can you design using only a few elements of their trademarks?
assisted development A S S I S T E D D E V E LO P M E N T In the world with great diversity, changing of social attitudes, discovering the market they have never looked at. Coming onto a new approach to Brand Perception without losing its identity. The idea of assisted development is where a consumer asks from the brand morethan just a product, but a lead in the use of lifestyle. A renewal of what feelings the Classic Flap can provide for a consumer.
“ POST-DEMOGRAPHIC world – a world of more diverse and complex consumer lifestyles – are everywhere.13 ”
If the Classic Flap didn’t hold the same shape, what else makes the item Simple and Elegant in a ‘Chanel’ style.
it’s all about the experience... ADDED VALUE
Promote the lifestyle the Classics can provide to the consumer. An elegance femenine lifestyle. Advertisement Campaign using the Classics trademark on an ordinary object, and how it makes the consumer feel the sense of eliteness. “Just the sense of having a Classic Handbag already enhances your boring old lifestyle. ”
REFERENCES 1
Amanda, M. (2015). 10 Things Every Handbag Lover Should Know About Chanel Flap Bags. Retrieved from https://www.purseblog.com/guides/chanel-flap-bag-facts-history/
2
Alex (2014). Chanel Price Increases Over The Years. Retrieved from https://www.bragmybag.com/chanel-price-increase-over-the-years/
3
Farrah. (2015). The History behind the Chanel 2.55 Bag . Retrieved from https://sites.psu.edu/thebagblog/2015/01/26/the-history-behind-the-chanel-2-55-bag/
4
Sarah, M. (2019). Fall 2019 READY-TO-WEAR Chanel. Retrieved from https://www.vogue.com/fashion-shows/fall-2019-ready-to-wear/chanel
5
Naomi, P. (2018). Kaia Gerber's First Chanel Campaign Is As Chanel As A Campaign Can Get. Retrieved from https://www.vogue.co.uk/article/kaia-gerber-chanel-handbag-campaign-2018
6
Barbara, F. (2018). The Mission Statements of Luxury Retail Brands. Retrieved from https://www.thebalancesmb.com/retail-luxury-brands-mission-statement-289176
7
celia, W. (2009). Why I love my Chanel. Retrieved from http://fashion.telegraph.co.uk/news-features/TMG5925607/Why-I-love-my-Chanel.html
8
SARAH, E. (2018). EXPERT'S PICK: WHY I LOVE VINTAGE CHANEL. Retrieved from https://www.xupes.com/magazine/article/2018/03/30/experts-pick-why-i-love-vintage-chanel
9
MUTT FLAPPER. (2012). THIS IS WHY I DON'T BUY CHANEL. Retrieved from https://muttflapper.com/authentication-chanel/this-is-why-i-dont-buy-chanel-post-2012
REFERENCES 10
MAGGIE, M. (2017). 25 Coco Chanel Quotes Every Woman Should Live By. Retrieved from https://www.townandcountrymag.com/style/fashion-trends/news/g1150/14-coco-chanel-quotes-every-woman-should-live-by/?slide=12
11
THE POSH (2019). CHANEL CLASSIC FLAP BAG REVIEW. Retrieved from https://www.theposh.net/blog/chanel-classic-flap-bag-review
12
CHANEL. (2013). Coco by Karl - Inside CHANEL. Retrieved from https://www.youtube.com/watch?v=2B5kxdf7Ev8&list=PLEE61EDB90F0AA88F&index=40
13
TREND WATCHING. (2018). 5 TRENDS FOR 2018. Retrieved from https://trendwatching.com/quarterly/2017-11/5-trends-2018/
14
MAGDA, A. (2019). The positioning of the four most valuable luxury fashion brands – 2019 update. Retrieved from https://brandstruck.co/blog-post/positioning-three-valuable-luxury-fashion-brands/
15
CHANEL. (2018). CHANEL BY KARL. Retrieved from http://inside.chanel.com/en/chanel-by-karl/video
16
TIA. (2018). 5 things Coco Chanel has changed the world of fashion with. Retrieved from https://dressedbytia.com/coco-chanel/
CHANEL