How Chanel became N°1 luxury fashion brand in China

According to the World Luxury Index™ China, “Chanel has become the #1 most sought-after global luxury brand in China”, overtaking competitors such as Louis Vuitton and Gucci.

Chanel’s beauty products
This year’s report has also revealed that part of Chanel’s success is thanks to its huge stake in beauty segment, as 22.70% of Chinese consumer interest whithin luxury market is in beauty, compared to fashion which accounts 14.90%.
Chanel’s dedication to its beauty products most likely has helped the brand to get the first rank in the report, overtaking Louis Vuitton which is rather focused on fashion.

Chanel has a wide range of beauty products, with celebrities such as Diane Kruger being the latest face of its beauty advertising campaign.

Events & Exhibitions
Another great venture started by Chanel is its “Little Black Jacket Exhibition” tour which is going around the world, including cities such as Beijing and Shanghai. It is not the first time Chanel is hosting an exhibition in China. Its last event was “Culture Chanel” in Guangzhou, which I am looking into further below. In general, events and exhibitions like those ones really push the image of the brand as they have a very special vibe around them and stimulate all senses of the audience, leaving a more lasting impression than any other type of advertising.

1. Chanel’s little black jacket exhibition

Chanel’s little black jacket exhibition in Beijing and Shanghai with celebrtity attendance certainly had a huge impact on Chinese luxury customers and increased the prestige of the brand.

2. Culture Chanel exhibition in Guangzhou (China)

In a collaboration with Jean-Louis Froment, Chanel decided to organise this exhibition which should reinforce the idea of a fusion between art and fashion.

According to Jean-Louis Froment, “this movement is driven by a cultural aura that has surrounded the brand since its very beginnings, embodied by its creator, Gabrielle Chanel, who has created a language all of her own. This language, which is part of the history of women and of all the artistic forms of modernity, has spanned many eras: it has given the brand’s creations recognition that is unrivalled, a quest for excellence and the desire to give these creations the status they deserve.”

Bags and Wallets
Moreover, the report states that bags and wallets dominate the fashion market in China, accounting for almost 90% of total interest. Celine’s “Luggage,” consolidates its iconic status in the mainland as the #1 most popular handbag model, followed by Hermès’ Birkin and Chanel’s 2.55. It is a little surprising that Louis Vuitton is not in the top 3, although it has overall the second rank in the report. Talking to a friend from China lately about this issue, I found out that the typical Louis Vuitton Monogram bag is apparently already too common in China and has lost its exclusivity. On the other hand, Chanel’s vision is to remail an exclusive brand. The creative director Karl Lagerfeld mentions in an interview “We don’t have the urgency to expand. We are an exclusive brand and we want to stay exclusive so it’s strategic to not be everywhere. What we are starting to learn is that like every developed market, the clients there want things other people can’t get. That’s what defines luxury in many ways so we’ve been careful, but in a very calculated way.”

“The original square buckle, Link Check, metal chain strap leather string… Chanel 2.55 was born in February 1955, after half a century of temper, carrying the old tradition and modern innovation, the perfect blend of classic visual appeal and practicality Chanel 2.55 handbag, keen attention by numerous fashion and fashion fanatics worship.”

Chinese brand ambassadors
Celebrity endorsement in China is very important as it gives people someone to relate and to aspire to. Many Western luxury brands use East-Asian embassadors as they can deliver the brand’s messaging better than any other celebrity.

Chanel’s ambassador is a well-known Chinese actress Zhou Xun, who has been selected for her strong fashion sense. Karl Lagerfeld is describing the actress as “a synthesis of young Coco Chanel and Ballet Troupe Zizi Jeanmaire.”

What do you think about Chanel? Do you think its ranking in China is well deserved?
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Tatjana

The many faces of Louis Vuitton

More and more companies are using celebrities to boost up their brand image… and they are doing it for a good reason. It seems like celebrities are invading the fashion world, smiling at us from the covers of the fashion magazines, posing stunningly on huge billboards while seducing us with their newest perfume commercial on TV.
Moreover, celebrities can be found increasingly more often in advertisement campaigns of successful luxury brands like Louis Vuitton.
In fact, judging from the vast usage of public faces in its campaigns, Louis Vuitton seems to believe in the effectiveness of this marketing tool… and because according to Millward Brown, LV is currently worth $25.9 billion and has been named to the world’s most valuable luxury fashion brand in 2012, there is no denial that the Marketing strategy of the French fashion house has proven to be quite successful so far. So what is their secret?
Let’s take a closer look at some of Louis Vuitton’s celebrity endorsements.

Caroline Ribeiro – Brazilian Model (2001)
Jennifer Lopez – singer (2003) – “The Reel Me” Gold Certification Award
Naomi Campbell – British supermodel and actress (2004)
Diane Kruger – German actress (2004)
Uma Thurman – American actress (2005) – Kill Bill success in 2003/04
Gisele Bündchen – Brazilian supermodel (2006)
Pharrell Williams – rapper (2006)
Eva Herzigova – Czech model and actress (2008/2009)
Kate Moss – British supermodel (2008)
Kanye West – American musician, film director and fashion designer (2008) – collaboration with LV (Shoe collection)
Madonna – singer (2009)

It can be observed that from 2001 till 2009 the fashion house preferably collaborated with famous supermodels, actresses and singers.
Nowadays, Louis Vuitton is using a much broader range of celebrities. Singers, models or actors, film directors and athletes, even astronauts – the luxury brand takes them all, and most of them have nothing to do with fashion. So which criteria is Louis Vuitton taking into account for its numerous endorsement contracts?

Its “Core Values” advertisement campaign which started in 2007 in collaboration with the star photographer Annie Leibovitz is featuring celebrities like Sean Connery, Steffi Graf, Keith Richards, Angelina Jolie, Muhammad Ali and many more.

Using such multifaceted personalities for its campaigns, the fashion house clearly tries to appeal to a broader audience. Moreover, it is focusing on its core values which are “travelling and craftsmanship”. All the selected brand representatives have achieved something special in their life and can be brought in connection with journeys at the same time – “Achievers who changed things”, so LV’s head of communication, Antoine Arnault.
Athletes are travelling to their competitions, actors and film directors are always on a move between the film sets, astronauts are travelling into the space and musicians go on tours. Each of the LV’s featured stars have a story to tell – their life is a journey of success and they are being followed by a big crowd of admirers.
However, there is more to it – Louis Vuitton is also stressing its environmental commitments with this campaign, supporting Al Gore’s Climate Project with donations in order to fight the global warming. Some of the endorsed celebrities like Angelina Jolie and Keith Richards have even donated their fees for the campaign to charity, which certainly supports its message.

Journeys – LV “Core values Campaign (2007-2012)

“Is there any greater journey than love?” Andre Agassi and Steffi Graf – tennis stars
“Sometimes home is just a feeling.” Catherine Deneuve – French actress
“A journey brings us face to face with ourselves.” Mikhail Gorbachev – Russian statesman
“There are journeys that turn into legends” Sean Connery – Scottish actor
“Some journeys cannot be put into words.” Keith Richards from Rolling Stones
“Inside every story there is a beautiful journey” Sophie and Francis Ford Coppola – American film director with his daughter

“Some journeys change mankind forever.” Sally Ride, Buzz Aldrin, Jim Lovell – US Astronauts (2009) 40th anniversary of man’s conquest of the Moon
“Three exceptional journeys. One historic game.” Pele, Diego Maradona and Zinedine Zidane – soccer stars
“The journey of a star, captured in a flash.” Mikhail Baryshnikov with Annie Leibovitz – Russian ballet dancer and US star Photographer

“A single journey can change a course of a life” Angelina Jolie – American actress “Some stars show you the way.” Muhammad Ali – heavyweight boxing champion
“Two extraordinary journeys. Just one way to get there.” Larissa Latynina and Michael Phelps – Gymnast and swimmer of legend

Every single campaign is telling a story and each star is giving an extraordinary contribution to Louis Vuitton’s brand image. The campaigns are reflecting up-to-date events, such as the image with the football stars, which was released during the World Cup 2010 and should, according to Arnault, “be brought on to the pitch in its case and revealed by a Louis Vuitton ambassador, in front of millions of fans and viewers”.
Similarly, Louis Vuitton has chosen famous astronauts for its ad in 2009, to celebrate the 40th anniversary of man’s conquest of the Moon.
The French fashion house is known for choosing its spokespeople for their exceptional achievements either in sports or in movies, for their humanitarian work and their love for people and for what this life has to offer.

All in all, Louis Vuitton is trying to tell us that our whole life is a journey and no matter where we go and how we shape it the luxury fashion brand wants to be a part of it.