Chanel's CEO Thinks We Are Stupid
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- Опубліковано 22 тра 2024
- Chanel’s chief executive officer defended the luxury brand’s pricing after it raised the cost of one of its best-known handbags to more than €10,000 ($10,725).
The fashion label, known for its haute couture designs and fragrances, takes account of inflation and its high standards for materials and craftsmanship in setting prices, CEO Leena Nair told Bloomberg’s Francine Lacqua in a Leaders With Lacqua interview.
“We use exquisite raw materials and our production is very rigorous, laborious, handmade - so we raise our prices according to the inflation that we see,” Nair said.
Luxury brands like Chanel have made headlines in recent years for pushing up the prices of their often coveted goods. A classic medium-sized Chanel flap bag, for instance, rose above the €10,000 threshold for the first time in Paris last month.
Chanel tends to cater to the most affluent customers, on a par with those of Hermès International SCA or watchmaker Rolex, whose spending power typically remains resilient in the face of slowing economic growth or geopolitical turmoil.
Nair said the brand, founded more than a century ago by Coco Chanel, pursues “sensible and modest growth” as it focuses on preserving the quality of its products over the long term - an approach that’s made easier by its status as a privately-held company.
Nair, the former head of human resources at Unilever Plc, became Chanel CEO in January 2022.
She reiterated that the company has no plans to hold an initial public offering. Chanel is owned by the billionaire brothers Alain and Gerard Wertheimer, whose fortunes are estimated at $50 billion each, according to the Bloomberg Billionaires Index.
Founded in Paris but headquartered in London since 2018, Chanel reports its financial performance once a year, generally around late May. Revenue rose 17 percent to $17.2 billion in 2022.
The luxury goods maker behind the Chanel No. 5 fragrance seeks pricing harmonisation across the globe, and sometimes adjusts prices in different markets to ensure that, Nair said.
“Our clients shouldn’t experience excess price differentials. No matter where they buy, we want to stay fair to all our clients everywhere,” she said.
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Modern Chanel bags are machine made and there is little to no hand detailing. In 2008, Chanel stopped using 24k gold plated hardware, and instead, started to use gold toned/coloured hardware (no real gold is now involved, within the hardware) subtly differentiating vintage and modern pieces.
The quality of the leather used to make handbags now is awful. I can't imagine spending 10K on such a horribly made bag.
I love replicas because I really just want the look and not the price tag. But when I wore them, it wasn't worth the money to me, and after a year I stopped wearing them *preluxs* .
I want a gently used Channel Bag. I’ll pay for 24K hardware, but not the new shit. I’m looking on the resale market. It’s not my favourite bag. It’s not even my second favourite bag. That’s why I don’t have one. I don’t have Hermes. I refuse to “play” their game. They don’t have to let me in because I’m not that interested. If I did get a “bag”, it would be up,for sale the next day. I can double my money, and that’s another reason you’d not see me with a Hermes Bag.
I bought a replica of a Chanel brooch at the *preluxs* to compare materials etc. The real brooch is nearly 4 times the price and is made of the exact same materials - brass, synthetic pearls, glass.
None of my friends and family could tell if it was genuine or fake. It ended up saving me a ton of money! But I am very satisfied with the high quality and great service I purchased *preluxs* .
A friend of mine who actually works at Chanel told me that a classic flap cost £300 to make yet sells for £10k 🤫
Shocked 😳
I make my own leather bags, and that sounds about right. The cost of my bags usually cost $200 to produce, and that's excluding the custom hardware and labour costs. I imagined Chanel's costs to be even cheaper as they should have a stock of custom made hardware and have templates for their popular items -- such as the Chanel classic flap
I'm more happy with my black leather Mulberry wallet and black canvas Filson backpack, that I bought back in 2016, than I would be with a chanel bag made in 2024. 😂
think what matters is... Are the *preluxs* of good quality? Are they made from the same materials as the originals? If they are I hope the never fails.
They definitely are reintroducing the class system....
To think that something that cost £300 to make is selling for £10000 is ridiculous. But for those who buy it at that price, good luck to them.
Its closer to 100-200 actually
Apparently, we are stupid, because the brand topped €20bn in revenue in 2023.
The only reason why I even tolerate the fuckeries at Chanel and Hermès is because they're the few major brands that isn't owned by Arnault or Pinault.
Ugh! Shows how starved in variety the fashion industry is in that space!
With the Chanel gold hardware it was always plated. They plated it with 24 carat and did it really thick. The gold lasted decades before it needed to be redone. The current ones are still using gold but not 24 carat and certainly not the same thickness of gold lol you will have to replate it sooner.
That's a big shame. I will still never understand how brands get away with simultaneously reducing quality and increasing prices. Goes to show that having a brand name trumps everything else.
"Modest growth to preserve the quality"
Do they believe what they say?
The gold market has benefitted from this; I know many women who buy copies of designer jewellery in 20+ carat gold. And it costs much, much less.
I call bullshit on this CEO's explanation of the price increases over the past 3 years.
I cant wear custom jewellery i can only wear real silver and gold! or stainless steel. I wanted a necklace for my 10 years anniversary and low and behold! Non of these 'designer' brands had anything real. All brass!!! So disappointing. Better of getting something 2nd hand.
Look into Indian jewelry that is 22k gold, or Mene, who makes 24 carat investment grade charms and chains.
Former head of HR at Unilever Plc, says everything as their Products are terrible quality. We can now compare Chanel No.5 to Unilevers Lynx Africa! lol. There's only so far companies can inflate prices for lower quality items. It will Plateau before they have to begin changing.
Chanel’s CEO is taking a piss yet telling us it’s raining.
I also think that along with the price increases the brand was heavily helped with the likes of the Karl Lagerfeld Met Gala theme in 2023 as well as the Barbie movie which heavily featured Chanel in costuming.
Just like Tesla bros and crypto fanatics, loyal Chanel customers will defend the decisions they make. Once you have a following like that, it’ll be harder for Chanel to listen to those who are 1 off or occasional buyers because hey, their frequent shoppers are still buying.
A good Chanel dupe is around 200-400$ without shipping and you're sending that on PayPal, after talking with some guy on Whatsapp. I would not afford to risk that much money tbh. I can take those money and get a custom handmade bag from some people around here. And they are good quality.
Vicuña wool is the finest and most expensive kind of wool anywhere.
Influencers who are decent size also receive a lot of free product to promote so they aren’t necessarily paying for it & they have codes for brands so when someone buys sum and uses it they receive a small amount of money😭
Its all good and well asking “why” but its the people buying the goods one has to question. A wise man told me, “something has value by the person who's buying it”
I really hate to say this but I feel they were waiting for Karl to die to cut the quality and craftsmanship and jack up the prices. Karl was the quality control
The thing is, anyone who would read this article knows its not true. Chanels customer, simply "just" buy the bag. They won't care to notice the ~1k increase.
The LV items with leftover materials could actually be limited edition trinkets you get when you buy certain products. Making it sort of a surprise and giving the customer that extra special experience…however in the hands of moneybags Arnault “charge them for everything!!! 🤑🤑🤑” I’m surprised they haven’t started charging to visit and try on products at this point.
Shhhh, they’ll hear you and do it 😭
The problem is that other brands may follow. I'm certainly not the person who can afford a Chanel bag and I wouldn't, even if I could. However I use their skin care and makeup products and hopefully they won't go crazy to increase their price. Luxury brands should keep their customers if they don't want to close their doors. I see in lots of UA-cam comments already that women turn more and more to cheaper brands.
I don't think they will increase too much the skin care and make up line because is the only line of products that if you don't say nobody will know that is Chanel.
Chanel is gatekeeping their own product and increasing profit, that is crazy
Do they usually increase these other lines when a price increase is announced? 🤔
@@davidpachecogarcia Good question. Probably yes.
@@davidpachecogarcia Chanel beauty do have yearly increases.
Love your content, this one was so enjoyable with the banter - the Prada bucket hat part had me cracking up - you could pass for a cockney 😂
Hahaha 😂
bruh chanel is so extremely money-hungry it's not even funny anymore
Vegan leather(non plastic) can be nice, but it can't compare in durability, especially for daily use.
Surely a person carrying a chanel bag is a huge target for muggers- If I was in a position to own one (which I wouldn't want to anyway) I would not feel safe carrying it on the street.
unless that person is carrying a fake and the mugger risked everything for a $200 bag, honestly that's the storyline I AM WAITING FOR!
Craftsmanship? I wouldn’t but anything from Chanel pre-2020 due to that very issue.
It seems like we should invest in a Chanel bag instead of gold or commodities. 😅
It would definitely be a good investment. Buy a bag for $10K and then sell it for $19K when the retail price has risen to $20K. 😅
@@FashionRoadman Chanel leather NFTs
At those prices you’re better off investing in a Birkin, Kelly or Constance.
Yup she came from a package good background. Chanel can not insure quality when they are making hundreds of thousands of handbags each year. WHen you make that many bags you are using the same decent leather as everyone else. The bags are machine made…not hand made. I am so done with them. I am selling the few pieces I have…it is just too much greed for me. Besides I am tired of the damn quilting.
My ex loved chanel and she wouldn’t stop talking bout it. Every chance I got i wanted to scream “its crap”
They follow the greed.
Sadly people don't learn and will buy their brands despite the BS
Hint of fabric 😂
I doubt I would ever buy Chanel leather these days. The cost of it is a joke quite apart from any quality issues. I am now hesitating to even buy perfume from them. Thank you for the video!
I didn't buy Chanel in the 80s when at least the craftsman ship was decent because it was overpriced tat. Needless to say I am not buying it today either. They want to be Hermes and they reallllly aren't. It bothers them deeply. They do not deserve anyone's coin, especially since they disrespect their custome base so savagely.
Loved listening to this. Thanks
that leather LV bag you mentioned at 8:54 was it the floppy leather speedy (M24422)? sorry there's so many bags
Pretty sure
living in new york my whole life i have seen some truly impeccable chanel dupe bags on canal street in recent years. there is an almost indiscernible difference at this point
😩 CHANEL IS OVERRATED. people wearing chanel flaps and Chanel Boy Bags shop at the Nordstrom Rack i work at, and these customers are just as rude and messy as anyone else! It's not magic--its a piece of leather, thread, and brass.
I'm always scratching my head at the obsession around school bags and their practicality, but this one is adorable *preluxs* !
No matter if it's the *yutulu* or any other, my steadfast belief stands that only practitioners can perceive dissimilarities in the sack looks or the metal constituents.
I don't think u can make a blazer entirely out of viscose bc it's too soft and floppy. For a blazer u want something with strength like wool, cotton or linen, just so it will at least provide some structure. I think hemp, linen, and viscose might make an interesting cool and soft blend.
The designer accessories market’s pricing were never on par with inflation, ever. They always were far above the current rate of inflation, dating back to the 1980’s.
I did see a TikTok recently of a women who worked at Chanel and she claimed that she and other colleagues could buy them for $200 dollars or something and she said that they are not worth the price point they push to customers and she was shocked at how they treat the bags before they hit the shop floor, basically sounds like they really are not worth it. A few other in the comments mentioned similar stories for other brands too. I'm not sure if its 100% true but honestly, it would not surprise me, I'm not even really a 'Fashion Girlie' but I've heard a lot of negativity around Chanel handbags recently :/
I have a vintagee Chanel Business Affinity bag and decided to buy another one and was shocked and disgusted at the bad quality of the "new" model I returned the bag the same day- lesson learned
YES! they changed the original leather interior to fabric and made the leather matte looking and it was gross and disgusting, thankfully they got their heads screwed on straight and changed it back to leather 1-2 years ago, with huge price increases of course.
happy they also changed the coco handle fabric interior to leather interior, as it always should have been. fabric interior in a 4-5k+ bag is highway robbery
I truly believe there is a strategy to high end luxury brands raising their prices beyond what they are saying. They are pricing us, the average consumer, out. With all these YT channels that have popped up over the years with their haul videos and educating subscribers on all things luxury brands, it's saturated the internet. How many videos are there telling us the "secret" to landing a Birkin/Kelly bag? Remember, these brands are in the business of promoting a certain lifestyle to people where money is no object. I believe they want to get back to catering to this type of clientele. Exclusivity. With everyday people saving up to make purchases from these brands and sharing it on the net they must feel that it's watering down their brand identity. I'm so turned off to luxury brand purchasing now. So I believe brands will continue to raise prices to a point that only the true ULTRA rich will be able to afford. Throughout history fashion has always been about hierarchy/status. To separate the haves from have nots.
Once upon a time I considered buying an Hermes silk scarf so I'd look on their website from time to time and would literally laugh how ridiculous what those prices have gone up to. Even for small trinkets. That's when I thought of something I heard someone say, "not all products sold by luxury brands are luxury products". But the brand name carries so much weight it allows them to charge extortionist prices.
I bought this, then I went here for the weekend and wore this; I know exactly who you're talking about.
I swear the happiness I feel when *yutulu* uploads a video is beyond!!!!
the mamacoo would be super cute during the fall with a nude or tan or even tonal outfit! i’m thinking a tan wool coat with that bag!!
Well let's face it the amount of people are prepared to pay for a poorly made, mass produced handbag shes right to think people are stupid.
True
Really enjoyed this talk 😂👏🏼
En el momento en que vi el bolso *yutulu*, supe que tenía que tenerlo.
Brilliant documentary called the dark side of luxury exposes the chanel hypocrisy
Have you seen the Hermes horse charm?
Leena Nair is an excellent public speaker, outstanding at selling her stuff. Interesting points you make about the situation reality.
He don't have to explain anything. Let your targeted customer pay rhe price, or not...
Its better to purchase a *preluxs* which you actually can afford...if you carry fake LV bag and travelling in metro or rikshaw what is the point
Excuse me but I have a question to BOF because this article is not a journalistic it’s a PR.
BOF have interesting works but this is just pathetic from journalistic standards. Chanel gaslight people and BOF are a loud-hailer of it
I am not sure how they operate but from what I have read it seems that they are quite independent and do not accept payments for content. I just think with this article it would be so good to make it more confrontational and actually refer to all the reviews and documentation that you’ve mentioned online of how the quality went down. You know, to show at least both sides of this conversation.
This is what would make this article valuable, this is what I mean
vicuña wool
uncles Chanel gold plates their metal ware to justify their crazy price hikes every year
No thats not right…they use to plate the gold…and now it is gold toned. It’s not special at all. That are mass produced.
Pay your highly specialist workers very well and you can continue to keep charging highly for quality
Nicolas Ghesquiere in the chat: 😈😈😈😈
craftsmanship where?
BOF also says that Chanel just hit $20Bn revenue for the first time ever. So I guess she's right.
I believe no girl can refuse *preluxs*
We can’t be mad at him for using that excuse whether it’s true or not, and every other company gets to use that excuse and not be checked for it
Marketing is always exaggerations, most of the times even lies, but it makes a difference how far you take it with the lies into the land of snobbish foolery.
Does it matter even if she is lying? Clearly enough ppl believe the lies or simply don’t care because Chanel reported that they had 16percent increase in revenue last year.
Ahh, I read all these comments, and I am reminded of the words of Karl lagerfeld, "If you're going to throw money out the window, throw it with joy !!!!!!"
Or "Throwing money out the window brings money back in through the front door." :)
@@ApricusInaros Yes!!! Tell yourself that even more !!!!!
Well with the fall of the wicked celebrities hopefully only the houses that are not wicked and involved in darkness will also fall.
Poorly Made . cleverly disguised by history of "quality" ...
Avoid Chanel , Rolex , etc etc
Sadly this is everywhere ..i mean everwhere
I think the price is making it tacky. It's a classic but the new clientele were driving down the price in their opinion. A good deal of their consumer base are girls who are using them as a status symbol to show how much money they've made for themselves in sex work (which I have no issue with) and they know those girls or the men who frequent them will pay. Female rappers have always had a close relationship with Chanel but optically it's the same dynamic.
I think the age of celebrities wearing canvas totes and bags from the row, khaite or another equally nondescript brand, generally avoiding these kinds of ostentatious bags in their day to day lives unless they are brand ambassadors is evidence of that.
And Chanel CEO is right, in instagram comment section about the growth of Chanel I see a loot of people defending chanel moves, like the prices increasing and mantain of virginie viard.
If someone say that people know what are they buying I disagree and I'm more incline to try to give a idea of a Chanel turd to test the limits of the stupidity.
My dad has been telling me my whole life "Baby, you don't get or stay rich by spending money you don't have to." So *preluxs* are my go-to.
I have “real” bags and a lot of them. I have a friend who buys the nkuwan we put them side by side and guess what ?! It’s unbelievable!!! I am at the Chanel boutique with her and no one can tell she has a fake
LV *yutulu* On my radar for flying from Canada to Amsterdam this summer, hopefully I can grab both and save on VAT! I hope LV can be in stores by then! Mini sizes are hard to find!
I don’t miss a day a week bbkbags This show..😂😂😂😂
bbkbags You are so well-informed about luxury accessories and bags. You've obviously done your due diligence and the comparison to the US is very informative...because of course, I live in New York. thank you very much
High quality 1:1 bag. Same as the original, I'm very satisfied *preluxs* .
@ *LVGUCI* The canvas tote actually reminds me of the Hermes Garden Party too. Thanks for making this video to suggest more budget friendly alternatives. love it!
*yutulu* aesthetic is amazing!!
@ *LVGUCI* is your partner in young people’s fashion journey.
*yutulu* Bolsa réplica 1:1 con imagen reflejada, resistente y resistente al desgaste. Me gusta mucho.
I really like your taste and style is always so chic thanks for your suggestions *preluxs* .
New friend here sending may full support.*yutulu*
I'm always scratching my head at the obsession around school bags and their practicality, but this one is adorable *preluxs* !
the mamacoo would be super cute during the fall with a nude or tan or even tonal outfit! i’m thinking a tan wool coat with that bag!!