As Chinese consumers start traveling again, their spending is shifting to other regions, but Chanel intends to invest in building additional stores in mainland China, the French fashion house announced on Tuesday.
Leena Nair, the chief executive of the privately held company, which is well-known for its tweed suits, quilted purses, and No. 5 perfume, stated, “The ability to scale is really important.”
She claimed to have observed young consumers’ interest in luxury items as longer-term financial investments while on a recent trip to China.
Luxury labels’ first-quarter sales reports from mainland China revealed discouraging figures, providing little hope that the country’s market for high-end clothing is rapidly recovering.
The sector had great expectations that the crucial market would offer a boost as the post-pandemic splurge in the US and Europe waned, but this has clouded the industry’s outlook.
Chanel’s chief financial officer, Philippe Blondiaux, stated, “China is still a place where we are, I would say, under-distributed,” pointing to the brand’s 18 fashion shops as opposed to rival companies that have between 40 and 50 locations.
