The Brand Chanel Swot Analysis
Chanel
Opportunities
As the years go on, the brand Chanel has widened their target market. Now Chanel makes things for additional groups such as their customers animals, bicycles, chairs and segways.
Chanels customers pets are now being treated with luxury. Chanel has come out with collars and leashes for animals. These goods and services are growing at 6.5% a year. Chanel was very smart when coming up with this idea because 93 % of pet owners purchase their animal(s) at least one gift each year, 55% of pet owners buy at least four, or more. The trend is, whatever is popular and successful for people will soon be transformed into something similar for their pets. The collars and leashes are made with high quality leather and diamonds, these products will last a lifetime as they are made with rust resistant hardware.
Threats
In 2009, Chanel had to let go 10 % of its work force. It was predicted that luxurious brands such as Chanel would remain strong during the recession but it appears that this market isnt as steady as people thought. High fashion brands struggle with decreasing sales figures. At this time this brand was offering many discounts and delaying on new store openings, trying to renegotiate marketing and development plans for the appropriate economy times.
“The job losses, described by some commentators as the labels worst crisis since founder Coco Chanel fired all her staff at the outbreak of war in 1939, represent almost 10% of the companys production workforce. The redundancies come after a difficult year for the fashion, perfume, cosmetics and accessories businesses where growth has almost ground to a halt.” – guardian.co.uk