Chapter 5. Developing a Global Vision

Karl Lagerfeld called the latest Chanel collection, simply, “Globalization.” And he planted a giant wooden replica of the planet in the middle of the Grand Palais, with pin lights denoting cities and little red flags for the 300 Chanel boutiques around the world. And it once again proves that Chanel is popular and in demand worldwide since 1913. Chanel opened its boutiques in many developed countries such as China, Japan, India, Russia and many others, which have a higher success.

 Chanel analyses ways in which the company can diversify its product offer and consumer base, while retaining its prestige status. They also consider the most promising target markets for Chanel's luxury brands and its development in the mass segment. Chanel Company examines their shares by region and sector, product developments, market and distribution strategies, challenges from the competition and future prospects. Chanel has always carefully studding the culture of the people to be successful in these countries.

            International luxury brands Chanel has started discount sales at its outlets in Delhi, Mumbai and other cities to woo first-time buyers as well as to clear inventory. Chanel put lower price tags on select products. Chanel offers 30% sale on its ready-to-wear section twice a year. This strategy is particularly effective in a nascent luxury market like India. The majority of those who buy these luxury products at lower price end up becoming regulars. However, the luxury brand uses the sales to reward its loyal customers rather than attract first time buyers.