Chanel plans to deliver personalized experiences to top-purchasing clients through dedicated boutiques as it builds upon strong FY2021 earnings of $15.6 billion in revenues — an increase of 49.6% YoY for the year ending Dec. 31, 2021.
Business of Fashion reported that the luxury fashion house will create boutiques to cater to its most supportive clients through private shops, separate from its 250 retail locations, which do not include beauty. This initiative is scheduled to begin in early 2023, with the first private boutiques planned to open in Chanel’s key cities in Asia.
“Our biggest preoccupation is to protect our customers and in particular our pre-existing customers,” Philippe Blondiaux, Global CFO of Chanel told Business of Fashion. “We’re going to invest in very protected boutiques to service clients in a very exclusive way.”
According to Chanel’s 2021 financial results, the luxury fashion house invested $758 million in capital expenditure with investments, representing 4.8% of sales, which included the purchase of a San Francisco retail building. In December 2021, Chanel also opened a boutique in Miami’s Design District with the space reflecting the artistic heritage and culture of the area.
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“The passion and engagement of our teams around the world is a key pillar of this success,” Blondiaux said in a statement. “Despite the challenging backdrop in 2021, our results highlighted remarkable customer demand particularly from our local client base, driven by the dedication and creativity of our teams to bring our clients’ dreams to life through unique experiences. 2022 will be another year of significant investment to support the long-term health of the Chanel brand and to deliver our sustainability ambition, whether in our people, continued focus on quality, customer experience, our boutiques or in our supply chain transformation.”
Chanel’s commitment to brick-and-mortar retail continues, and many of its designs remain available only through its boutiques. Despite its intentions to fortify its retail store business, Chanel noted that it would continue to invest in digital options such as “virtual try on services, online appointment booking and global digital applications” as it grows ecommerce offerings.
