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    Top 20 Companies

    15 Chanel

    ...

    15 Chanel
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    Jamie Matusow, with Joanna Cosgrove10.30.20
    Chanel is #15 on this year's list of Top Global Beauty Companies.

    Below is a look at the company's 2020 highlights, recent acquisitions, best-selling brands, and latest innovations.

    Corporate Sales

    $12.3 billion

    Beauty Sales

    $4.1 billion (est.)

    Key Personnel

    • Alain Wertheimer, global chief executive officer and co-chairman
    • Gerard Wertheimer, co-chairman
    • Alain Philippe Blodiaux, chief financial officer
    • Lucia Pica, global creative makeup & color director
    • Andrea d’Avack, global chief sustainability officer
    • Agathe Derain, head of human rights, corporate sustainability

    Major Products

    • Chanel No. 5, Allure, Allure Homme
    • Coco Mademoiselle, Chance, No.19
    • Cristalle, Les Exclusifs, Bleu de Chanel
    • Sublimage, Ultra Correction Lift and Line Repair
    • Hydramax + Active, Rouge Allure, Le Vernis

    New Products

    • Chanel Les 4 Ombres, Rouge Coco Flash, Poudre Universelle Libre
    • Coco Mademoiselle L’Eau Privé, Bleu de Chanel Parfum Twist and Spray
    • Coco Mademoiselle Fresh Hair Mist, Le Gommage Anti-Pollution Exfoliating Gel
    • Chance Eau Tendre Eau de Parfum, Stylo Yeux Waterproof eyeliner

    Comments

    Chanel reported strong 2019 results across all regions and product categories despite some challenging conditions within the year, including Hong Kong demonstrations and strikes in France—unaware of how the market would be stressed even further with the arrival of Covid-19. The luxury brand reported corporate sales of $12.3 billion for the year.

    Overall sales were strongest in Asia-Pacific, followed by Europe, then the Americas.

    The privately-owned Chanel continued to enhance customer experience in Fragrance and Beauty through the development of its own retail network. The brand operated 144 Fragrance & Beauty boutiques around the world as of the end of 2019, which, combined with its e-commerce platform on chanel.com, reinforces its omnichannel approach.

    In 2019, Chanel’s Fragrance and Beauty category continued to deliver strong growth across all product categories and channels. In Fragrance, Chanel reinforced its leadership, supported by the launch of Chance Eau Tendre Eau de Parfum, the new Gabrielle Essence, which made it a new pillar of the House’s fragrances, along with the continued success of Bleu de Chanel. In Beauty, Chanel says it continued to gain market share in makeup, boosted by Rouge Coco Flash and Ultra le Teint. Sublimage, along with Le Lift, led the growth of the skin care category.

    One of its strategic priorities for 2019 was to strengthen the company’s policy on climate change. Chanel made four commitments: to reduce its carbon footprint across its own operations and its entire supply chain to meet science-based targets; shift to 100% renewable electricity on a worldwide basis by 2025; balance its residual carbon emissions; and finance climate change adaptation. The company’s 2030 carbon emissions targets were approved by the science-based targets initiative. Chanel reached carbon neutrality in 2019. In doing so, Chanel continues to intensify its commitment to responsible and sustainable business practices in both its business and supply chain and has accelerated its transformation for a more sustainable future.

    Late in the year, Chanel released a video and ad campaign for the Holiday season, with a snow-globe-Christmas theme. It starred Lily-Rose Depp,  the new face of the brand, sitting atop a giant Chanel No. 5 L’Eau bottle.

    2020 Highlights

    In February, Marion Cotillard was named brand ambassador for Chanel No.5. Chanel said of Cotillard, “The perfect incarnation of French natural beauty, Marion Cotillard has an irresistible ‘je ne sais quoi’ that’s all her own. She is bringing her elegance to the image of the iconic N°5 fragrance.”

    In May, Chanel launched an online beauty pop-up store in Hong Kong, just prior to Mother’s Day, as a retail experience alternative to department stores shuttered by Covid-19—featuring makeup, skin care and fragrance.

    With so much momentum moving toward e-commerce sales,  Chanel has made a move toward going digital, selling its perfume and cosmetics via Korea’s Kakao Talk app, said to be used by over 90% of smartphone owners in Korea.

    Looking Ahead

    Chanel has forecast a “significant” impact on its business this year after the pandemic forced it to temporarily close its boutiques, manufacturing activities and distribution centers worldwide. While sales in China are reportedly bouncing back, the prestige brand can only hope that global travel resumes shortly.

    Just last month, Chanel appointed Agathe Derain, who previously served as responsible sourcing director in the luxury design house’s fragrance and beauty division, to the newly created position of head of human rights, corporate sustainability. Derain will follow Chanel’s goals to comply with the 2015 Paris Climate Agreement, under which Chanel reportedly plans to spend $25 million over the next five years.

    A new Chanel Beauty product range has been released for the Fall/Winter 2020 season. Called the “Red” collection, the range consists of lipsticks, blushes, eyeshadows and nail polishes.

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    • 17 Natura &Co

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