Chanel to open extra shops in China at the same time as progress shifts overseas

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Reuters

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Could 22, 2024

Chanel plans to put money into opening extra shops in mainland China regardless of a shift of spending by Chinese language consumers to different markets as they resume travelling, the French label mentioned on Tuesday.

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“The flexibility to scale is basically necessary,” mentioned Leena Nair, chief govt of the privately-owned label, recognized for its tweed fits, quilted purses and No. 5 fragrance.

On a latest journey to China, she mentioned she seen younger consumers had been taken with luxurious purchases as long term monetary investments.

First quarter gross sales updates from luxurious manufacturers confirmed contrasting ends in mainland China, providing little reassurance that Chinese language demand for top finish trend is bouncing again rapidly.

This has forged a cloud over the outlook for the business, which had excessive hopes that the important thing market would supply a lift because the post-pandemic splurge in the US and Europe abated.

“China remains to be a spot the place we’re, I might say, underneath distributed,” mentioned Chanel chief monetary officer Philippe Blondiaux, citing the label’s 18 trend boutiques in comparison with competing manufacturers which have round 40 to 50 shops.

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