What is happening to the luxury market now Chanel’s sales and profits are going down as well?
Chanel is one of the top luxury brands in the world operating in the luxury key categories like fashion, accessories, footwear, eyewear and beauty. The owners Alain and Gerard Wertheimer, have admitted that the revenue during the Amsterdam Stock Exchange fell 17% to $6.24bn last year while profits fell even 23% to $1.6 bn.
The cause of the drops in sales and profits are unclear, however it’s not too difficult to guess that we see less tourists in these key markets, more investments on stores and marketing were made, as well as the unsteadiness of the Chinese market in 2015.
Chanel is planning to fight their way up again with two new faces. Willow Smith for Eyewear and Lily-Rose Depp as the face of the new Chanel No 5 L’eau which was just launched recently.
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