DeBeers REPORT 2014

“

If I have chosen diamonds it is because they represent

the highest value in the smallest volume”

– Gabrielle Chanel

Chanel is an example that epitomises the level of sophistication that luxury retail has reached.

Chanel has been careful to differentiate its store formats, opening specialist boutiques exclusively

to serve customers who are shopping for fine jewellery and watches rather than fashion. This

allows Chanel to offer an experience tailored specifically to selling jewellery, with the right store

ambience, specially trained staff and accompanying security.

MARCHMARCHO

At the same time as investment in store and customer experience has grown, Chanel’s marketing

investment has also risen (as has that of its peers in the luxury world). Chanel more than doubled

its overall advertising spend over the last five years (up from US$67 million in 2008 to US$153

million in 2013), pulling ahead of branded jewellery specialists whose advertising spend decreased

over the same period

. This level of investment, in both advertising and the retail experience,

helps to reinforce the consumer’s desire for diamonds as precious and beautiful gems that are

particularly appropriate to mark significant life occasions and milestones.

TKKURIKAWA

MARTINGOOD

The brand has invested heavily in stores, securing prime locations for its flagships, (eg New Bond

Street in London and New York’s Fifth Avenue). Additionally, the quality of materials and

architecture of these stores is rising fast: leading architect Peter Marino was engaged to work on

Chanel’s flagship New Bond Street store in London, and this one store alone is estimated to have

cost £30 million to design and refurbish

. Chanel has also created pop-up stores, such as its

temporary boutiques in St Tropez

and Courchevel

, aimed at attracting wealthy holidaymakers.

RADUBERCAN

Chanel is using technology and data in innovative ways to enhance the customer experience.

For instance, new stores feature a large screen on which to stream live coverage of Chanel’s

fashion shows. Chanel also communicates with its customers through a twice-daily newsletter,

Chanel News

FIG. 15:

CASE STUDY: CHANEL