How To Regain The Historic Value Of A Fashion Brand
Clothing retail has changed considerably since most brand manufacturers realised that the future may not any longer be in terrestrial stores or in what we in the UK call high street stores. Many leading fashion brands are concerned about what they call “ brand value”. This even applies to leading manufacturers such as Chanel and Dior.
Chanel is perhaps struggling with brand identity more than other brands. Many Chanel devotees feel that the brand has lost something over the years. Thanks to the Internet, Chanel goods have for the first time become available to the masses. Previously, Chanel focused on selling their goods to the selected few. However, just like so many other leading brands, Chanel quickly became seduced by higher profit margins and increase the desire to conquer the Internet.
However, just like with so many other more exclusive brands, this has backfired the brand. Internet sales policy relies very heavily on discounting. For the first time in its history, Chanel has started to discount its goods. This is the only way the brand can compete against many other luxury goods retailers.
The Internet And Its Effect Of Brand Value
Chanel is still one of the world’s leading brands, but soaring sales have not always led to soaring profits. The brand’s policy of making its goods available online seems to have misfired. For the first time ever, discounts are available on Chanel goods outside of the brand’s traditional sales season which is normally the New Year sales in some of the world’s leading capitals.
Clothes produced by Chanel has always been regarded as one of the most well-manufactured clothes in the world. The materials used have always been the best. Regrettably, the company has realised that it can’t any longer produce all of their clothes using the best materials. Mass-production processes simply do not fit in with the brand. This was something the company did not consider before it launched its online sales.
Now, many of the clothes manufactured by Chanel are produced using inferior materials. This is slowly feeding through to genuine followers of Chanel and has led to many genuine devotees switching to other brands.
The Victim Of The Celeb Curse
Many within the Chanel organisation speak of what they call the celebrity curse. Famous people who would not normally buy Chanel clothing has started to consider it every day casual wear. The Chanel logo is popping up on enhanced chests all over the world. Yes, some of the goods are fake, but this is not always the case.
If you shop around online, you can pick up up a casual Chanel t-shirt for the same price you can pick up a t-shirt from Mango or other popular manufacturers. Celeb bloggers tweet about their wearing Chanel. As a result, the brand has lost a lot of its exclusivity. Many brand devotees are now beginning to talk about brand respect.
What Is Brand Respect?
A respect for a brand is just as important as a high sales volume. Many brands have started to realise that mass sales are not really longer the future. The more a brand is “seen”, the less exclusive it becomes. In other words, the desirability to own the product is reduced. Now, the girl next door is just as likely to own a Chanel dress as that perfect petite movie star was years ago.
This means the brand has lost some of its value to the customer. Instead of a summer dress selling for $1,000, it now sells for about $300. Increased sales volume has certainly not lead to increased profits for Chanel. A higher price, and exclusive availability, is ultimately what gives a brand respect.
Fake Goods VS The Real Deal
Like so many other brands, Chanel does suffer from the invasion of fake Chanel goods. At one time, the Internet was awash with fake Chanel goods ranging from perfumes to handbags. As a result, the company found itself embroiled on countless lawsuits right across the world.
Despite having come up with new manufacturing processes and identification systems that confirm that an item is a genuine Chanel product, the brand is still struggling to reduce the amount of copy cat manufacturing that goes on. The truth is that many shoppers do not care if the item they have just bought is real or not – they just want to achieve the look.
How To Regain Brand Control
The latest buzz word within luxury goods manufacturing is – brand control. How can you regain brand control when there are so many fake goods available? When you stop and think about it, there is only way of doing so and that is to reduce production. The brand once again needs to become more exclusive. The only way it can do that is to reduce the amount of clothing and luxury accessories it makes available to the general public. However, this process is not easy. As a matter of fact, Chanel knows that as a company, it is for a long ride. The cost of buying a ticket to this ride is also significant. The reinvestment in the Chanel brand is set to cost a small fortune.
Fortunately for Chanel, this fits in with the world’s new retail and shopping ethos. Shoppers all around the world are being encouraged to buy more quality goods but less of them. The idea is to keep your clothes for longer to help to reduce overall global pollution levels. As we all know, mass production of cheap or low-cost clothing is a major culprit when it comes to contributing to environmental damage.
How To Pay For Investment Into Your Brand
How is Chanel going to pay for all of this? Chanel has very much realised that this is a step by step process which can’t be rushed into. Instead of stopping discounting of all its goods, the company is going to focus on certain lines. It knowns it is making steps in the right direction. After all, its haute-couture business is thriving.
Investment is a natural part of the process. But many companies and high net worth individuals are reluctant to invest in clothing manufacturing. They have seen and experienced many failures within the clothing manufacturing industry. As we all know, the UK high street has very much been one of its victims.
Instead of focusing on investment, many luxury brand manufacturers such as Chanel, are turning to their other ranges to see them through the crisis. They have started to emphasise their other goods such as perfumes and skincare.
Selling other ranges with a proper discount structure will hopefully allow them to add more money to their coffers as it were.
Direct Sales Online
Although we are likely to less sales of Chanel clothing online, we are likely to come across perfume and skincare being sold directly by the company. The brand hopes to cut out the middle man. Like so many other leading perfume and skincare manufacturers, it has set up its own websites around the world.
It has invested heavily in skincare ranges and makeup ranges. The manufacturing process of skincare and makeup is a lot easier and cheaper than bringing new clothing ranges to the market. A lot of goods can be sold very quickly and also be made available through various online retail outlets.
This is one of the reasons you will have seen an increase of Chanel beauty and perfume products available online. All beauty and perfume products are often being sold with extra incentives such as free gifts or free samples of up and coming new products.
You are encouraged to sign up for newsletters and discount product codes are sent out to subscribers on a regular basis.
On top of this, Chanel is dropping many of its brand bloggers and so-called celebs who used to get paid in free clothes, products or lucrative financial deals to promote its products. Chanel desperately wants to bring back the brand’s exclusive image and raise its manufacturing standards.
What Is The Future Of Chanel And Who Is Going To Buy Chanel?
If you work for a London escorts agency, you may soon find that Chanel clothing will be out of your price range. Yes, believe it or not, the prices were dropped and mass production ensued, the brands even became popular with London escorts. This is exactly the sort of association Chanel does not want to pursue any longer.
Instead of having a couple of blonde London escorts sitting around waiting for their next dinner date wearing Chanel, they want to see others wear the brand. Okay, the days of Princess Diana showing the brand off to the world will never come back. They may have found a friend in Meghan Markle, but sadly she does not have the same pulling power as Princess Diana or the other famous American who once called herself a Windsor – Wallis Simpson. But the association of girls like London escorts wearing the brand needs to be a thing of the past if the brand is serious about regaining its exclusive image.