13. Chanel
France
Beauty Sales: $2.5 billion (estimated) for cosmetics, toiletries and fragrances.

Key Personnel: Alain Wertheimer, chairman; Maureen Chiquet, global chief executive officer; Françoise Montenay, president, Chanel S.A.; Peter Philips, creative director of makeup.

Products/Brands: Skin care, color cosmetics and fine fragrances.

New Products: Skin care—Sublimage Essential Regenerating Cream, anti-pollution cleansers and toners; Color cosmetics—Lift Lumiere Firming and Smoothing Fluid Makeup, Facettes d’or nail color; Fragrance—Coco Mademoiselle 2008, Chanel Beige, No. 5 Eau Première.

Comments: The French retailer synonymous with iconic good taste continues to lure customers with its luxurious products and classic packaging. Recently, the privately held international trendsetter boosted its profile in its largest U.S. market—and its floor space—in Manhattan’s Saks Fifth Avenue and Bergdorf Goodman stores. On the main floor in Saks, a largely expanded cosmetics counter has taken shape as an 850-square-foot fragrance and cosmetics shop, the largest of any brand. Portraits of Coco Chanel as well as sophisticated decorative touches set the stage and a new, patented olfactive bar makes it easy to sample fragrances. Chanel will reportedly also redesign its SoHo store. In addition, the company has enhanced its presence with a mobile art exhibit located in a futuristic-looking pavilion in Central Park.
  
While the latest fragrance, Beige, has launched as a limited edition, the classic scents still reign. Coco Mademoiselle and Chanel No. 5 were among the top five prestige fragrances preferred by consumers according to an NPD Group survey taken earlier this year. Chanel No. 5 is said to be the top-selling perfume of all time. Starting in 2009, “Amelie” star Audrey Tautou will replace Nicole Kidman as the face of the popular scent. In June, Chanel signed a deal with British actress Emma Watson, making her the new face of Coco Mademoiselle; she replaces Keira Knightley.
  
In 2007, Chanel tried a different sales approach in a mall in Australia. For the first time, the French retailer moved outside department stores and set up shop in the middle of an upscale mall in Westfield Bondi Junction, offering its full range of fragrance and beauty products. The thought is that Chanel wants to strengthen its sales of lipstick and nail polish—the entry points in the line—and build upon it with fragrance and beauty products. Plans were for the boutiques to have a limited run.