You would think Black Fridays would make every retailer pant in anticipation. After all, the profits made from Black Friday sales are outrageously good. Add e-commerce on top of this shopping holiday, and you’ve created a chocolate factory that surpasses Willy Wonka’s wildest imaginations.
There is one notable exception – Chanel. This French brand has consistently declined to make their products available online, with the notable exception of their perfumes and small accessories like sunglasses. Fashion president, Bruno Pavlovsky told Vogue,
“If you give everything to everyone straight away, I think you lose that exclusivity…I‘m not saying we won’t try it one day, but if we do it will be because we’ll really think there’s some added value.”
It’s true that luxury brands have always been late to the game of e-commerce – maintaining exclusivity is how the upper echelons keep their status. However, Chanel is notorious for not caving to the tempting, and rather easy, business of e-commerce. Luxury products are projected to account up to 25% of their profits due to web sales by 2025, but Chanel doesn’t seem to want to join in on the fun.
In fact, Pavlovsky also stated that by not joining the world of e-commerce, they’ve increased their market range of consumers – more and more young folks are eager to purchase Chanel bags and clothes, with waiting lists growing steadily. While the brand’s financials are not always available, 2016 saw a net profit drop by almost 35% while its competitors experienced a healthy growth in 2017.
In lieu of fearing profit losses, competitors such as Louis Vuitton have opted for the quick sell by succumbing to web sales, Chanel maintains a quiet sense of authority over the fashion world, which was established in 1910. Coco Chanel would approve of this decision, most definitely. The fashion world runs on its own sense of finance – the goal is not to make money, however counter-intuitive it may seem. The goal is to create an exclusive experience for a customer. When you walk into a Chanel boutique, you try on clothes and are served by an expert hand, purchasing that piece of clothing creates a market value of yourself, which is valued both by Chanel and you.
The only way Chanel wants to dabble in e-commerce, Pavlovsky says, is to perhaps reserve some items of clothing or to book appointments online.
But for the time being, Chanel will not join in on e-commerce, remaining as always, a mark above the rest. Read this and more about Chanel, on Reuters.
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