Chanel'S Luxury Brand Embracing Business Change

Chanel will launch a global electric business system cautiously "touches the net".

The rapid coverage of the Internet has always been repelled.

Chanel, a luxury brand, began to "cautiously" touches the net, and has made new attempts in e-commerce.

It is reported that later in 2015, it will start selling eyewear products on the US e-commerce platform.

Chanel (Chanel) fashion President Bruno Pavlovsky revealed that by the third quarter of 2016 or the fourth quarter, Chanel will officially launch a global electricity supplier network.

And by the end of 2015, the three Metiers d'Art advanced handicraft shops of Chanel's subsidiary company Paraffection (including glove workshop Causse, hat making workshop Maison Michel and Scotland knitting brand BarrieKnitwear) will open the electricity supplier channel separately.

Glasses products will be the second test of Chanel electricity supplier in the first half of 2015.

In April 2015, Chanel worked with Net-a-porter, a luxury shopping website, to open a sales section for its premium jewellery series Coco Crush, which is priced at 1970~19000 euro zone. It is reported that it will be robbed only after 6 hours of sale.

This may strengthen Chanel's confidence in opening the electricity supplier.

Prior to this, Chanel is a typical representative of the luxury brand that strongly repels the electricity supplier.

Bruno Pavlovsky explained why Chanel did not carry out online sales of accessories and garments: "

It requires people to see, touch, feel and understand.

And Coco Chanel's motto is "if you want to be irreplaceable, you must always be unique."

"The brand will never die".

However, in early 2015, Chanel began to prepare for the electricity supplier.

In February, Chanel announced that it would coordinate the pricing of the global market, selling in disguise in Asian markets such as China, Hongkong and South Korea, while the price of euro zone products increased by 20%.

At that time, Bruno Pavlovsky pointed out that the new pricing strategy helped the brand to step online sales: "one day we may sell on the Internet, but we will not do so before we are ready."

Chanel's accelerated move toward the electricity supplier may indicate that the luxury industry that insists on the traditional mode can not resist the tide of the Internet. In the slow growth period of the industry, the electricity supplier channel has become a very important part of the luxury industry.

However, opening up the electricity supplier is not only a simple way to increase the channel, but also the traditional story telling and customer experience management of luxury brands will usher in all aspects of the Internet challenge.

From exclusion to embrace why luxury brands have so excluded the electricity supplier? "International brand management expert," Guzez Gutsazt, vice president of KEDGE business school, France, is in the "Michel".

In an exclusive interview with reporters on the road to China's high-end brand building and EMBA private Council open class, the luxury brands thought that consumers could only feel the exquisite workmanship of boutiques and bags by touching, and only physical stores could enjoy their unique tailoring.

Secondly, it thinks that the starting point of e-commerce is the price, and the luxury brands are reluctant to reduce their price and image; third, they worry about the existence of fake goods on the Internet.

Even now, a vice president of global high-end electrical appliances brand, who has entered China for more than 20 years, said in an interview with reporters that the electricity supplier will not be considered for the time being. "Because the electricity supplier can not let customers get high-quality experience."

However, Bruno Pavlovsky gradually realized that "the electricity supplier channel enables us to better understand, serve customers and enhance communication with customers.

This is an opportunity to establish long-term good relations with our customers. "

He said that the e-commerce platform is an effective way for customers to understand the new product listing. Customers need to understand the latest product trends quickly, and this service will ultimately benefit the brand.

Chanel plans to launch a global price adjustment from the 2016 holiday series to match the launch of its e-commerce platform.

Many other luxury brands have also opened up the electricity supplier process.

At the end of 2010, Giorgio Armani announced the launch of e-commerce channel emporioarmani.cn in China, becoming the first high-end fashion brand to launch online stores in China.

In the spring of 2015, Fendi will also launch an e-commerce website, although it only provided 28 European countries with delivery services at the early stage.

To catch up with Chinese consumers, it seems more urgent for luxury brands to have e-commerce, new media and digital marketing.

Studies have shown that in fast growing markets such as China, India, Turkey and Latin America, customers with purchasing power are more than 10 years younger than developed markets. These young customers generally have intelligent devices and are more interested in digital technology.

"No world-class luxury brands can be absent from the electricity supplier market."

Mario Ortelli, senior analyst at Bernstein Research, said that he predicted that in the next 5 to 10 years, the business channel will occupy more than 15% of the total turnover of luxury goods, which is mainly driven by the promotion of emerging markets. Young and wealthy consumers in the market will be digital elites. Bernstein,

"Internet - Challenge" in the Internet + era, "Internet has become one of the challenges of luxury brands", Wang Depei, vice president of China Economic Restructuring Research Association and chief researcher of Fu Chi think tank, said earlier that in this "Internet +" campaign, real life is more "Internet".

Because in the medium to long term, the Internet will bring the top brands back to its true meaning. The brand should let its value and taste be truly perceived by consumers, not just the online sale of general merchandise.

"The two important points of luxury brands are brand story and brand experience," said Li Wei, CEO and partner of creative Shanghai.

To embrace business change, we should really abandon traditional storytelling and experiential mode, be brave in innovation and give consumers a brand new experience.

For example, now the consumer information contact point has changed, many times on the Internet platform, so high-end brands also need to start using these channels, and the interaction characteristics of the Internet itself to tell their stories.

One example is that LV has product lines such as packages and watches, but the core of the brand is travel and suitcase. Many communication activities and information of LV digital advertising revolve around such a point, such as how to communicate with consumers, how to sort out the luggage gracefully, and use this method to tell brand stories.

For example, luxury brands have given customers special customer experience through luxurious storefront and meticulous service. In the Internet age, luxury brands may have to consider how to use digital technology to give customers special consumption experience.

Burberry's digital strategy is considered to be the leading factor in the luxury goods industry. When other luxury brands are still hesitant about new media and digital strategy, it is also the first luxury brand to profit from e-commerce and new media marketing.

In 2013, its Burberry Kisses, which was cooperated with search giant Google, was considered a successful attempt to bind customers and connect brands to consumers through personalized emotional appeals.

In the latest flagship store in Shanghai, Burberry also tried to use radio frequency identification technology (RFID) for the first time. By embedding digital chips in specific clothing and accessories, the multimedia content of the product can be displayed to customers, bringing fresh shopping experience to consumers.

It is reported that BURBERRY's investment in digital technology even exceeds 60% of the marketing budget.