Chanel Retailer: Impact of Fashion Trends and Strategies in UK Report

This report provides an in-depth analysis of Chanel's retail operations, focusing on the impact of various fashion trends and strategies. It begins with an introduction outlining the research questions, objectives, and methodology, followed by a background on Chanel's position in the retail industry. The analysis section utilizes both secondary research, including a PESTLE analysis, and primary research, incorporating survey data to assess consumer perspectives on fashion trends, fast fashion strategies, and the role of artificial intelligence. The report examines the influence of trends like omnichannel retail, personalized experiences, and the integration of AI. The methodology includes internal and external analysis, PESTLE, Porter's five forces, and SWOT analysis. The primary research section, based on surveys, explores consumer attitudes toward fashion trends, the effectiveness of fast fashion strategies, the impact of AI, and the potential for business expansion through technology. The report concludes with recommendations for Chanel, emphasizing the importance of innovation and adapting to consumer preferences. The findings highlight the need for Chanel to embrace technological advancements and sustainability to maintain its competitive edge in the evolving fashion market.

Inquiry Based Learning
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Contents
INTRODUCTION...........................................................................................................................4
Research Question...........................................................................................................................4
Objective of research.......................................................................................................................4
Methodology....................................................................................................................................4
BACKGROUND.............................................................................................................................5
ANALYSIS......................................................................................................................................7
Secondary Research.........................................................................................................................7
Primary Research.........................................................................................................................913
RECOMMENDATION.................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
In this report, it will discuss about the Chanel as clothing retailer in UK, which provides the
different kind of products as well as services. it is mainly focused on the Chanel enterprise which
means that analyse the trends of Chanel in marketplace. Analysis the demand of trends within
retailer industry while gaining more insight into presence in market by using suitable fast fashion
strategies. Chanel has been consider as top of retail industry in which increasing the demand in
global marketplace. The primary reason for selecting theme regarding fashion strategies in which
identify the current trends. This research will focus on the latest trends in fashion industry
affecting Chanel and impact of its trend.
Research Question
 How will be impact the Fast Fashion strategy on the Chanel?
 What are the aspect of sustainability in the fashion industry impact Chanel?
 What are significant impact of artificial intelligence on Chanel?
Objective of research
 To analyse the impact of fashion trends such as artificial intelligence, sustainable fashion
on Chanel.
Methodology
How aim will be achieved
The project aim will be achieved by performing the internal as well as external analysis
of Chanel enterprise. It will consider all essential platform or tool such as Pestle, Porter’s five
force. This will help for identifying the impacts on the current business performance. Moreover,
by consideration of SWOT analysis which means that determine external or internal strength of
enterprise. Sometimes, there are large amount or data gather from different sources such as
Google scholar, annual reports etc.
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BACKGROUND
Nowadays, it has been rapidly increasingly the trends of retail industry. Chanel is one of
the French fashion house that focuses on women high fashion and ready to wear clothes, good
and accessories. This type of company is always concerned about the different innovative aspects
to increase entire business performance and efficiency (Copeland, Ciampaglia and Zhao, 2019).
So as they have been considered the modern technology, which continuously to disrupt or
transform retail landscape.
An emerging the modern technologies will continue to shape the better shopping
experience of existing consumers. While AI and other kind of advancement are completely
changing the business journey of Chanel retailer. This will help for gaining a better consumer
experience which become as latest currency. Consideration of new trends which are insights
from collecting or gathering consumer data, which will become indispensable for retailers.
Chanel retailer is going through different enormous amount of change. Sometimes, it is
also identified the consumer behavior and their expectation as higher than ever. In this way, it
has been identified the some different industry trends in order to ensure that Chanel company
become successful now.
Trend: - 1
Invest in Omni-channel retail strategies- It is one of the most important trend in the retail
industry and always focused on the Omni-channel retail strategies. This will help for targeting
the digital consumers and tend to consult these device to make a purchase goods and services
(Doherty, 2019). The ubiquity of connected hardware devices means that existing consumer
demand a seamless experience across various touch points. As part of positive shopping
experience that must start with mobile phone. Therefore, Chanel enterprise will launch a
smartphone application and allow them to take more advantage of purchasing device,
supplement its usage or other systems.
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Trend: - 2
Provide a personalized retail experience- It is another important retail industry trends
which become increasingly the consumer having a personalized shopping experience. Therefore,
personalization in the real world which often involves retailers giving consumer suggestion on
the basis of taste, location, order history etc. Chanel as retailer that will create as personalized
experience through better consumer service.
Embrace the digital Mobile Wallet- One emerging the retail industry trend is use of mobile
as a payment method. Nowadays, It has been increased the demand of digital mobile wallet
because consumer can easily done multiple transaction process (Kauppinen-Räisänen,
Mühlbacher and Taishoff, 2020). Chanel retailer have caught the trend which has been already
providing seamless mobile payment through adoption of applications. The rise of digital wallet
demonstrates that there is growing the existence of potential consumer demand for flexible
payment methods. Chanel retailer would provide the facility for their consumer to use different
payment methods such as PayPal, Google pay etc.
Trend: - 3
Expand into emerging markets and create new channels- One common retail industry trend
is the ability to examine the new markets and its multiple channels. Advancement of technology
has been made it easier for retailer to tap into international level. This will help for emerging the
markets but it is difficult to reach. Nowadays, Chanel retailer is no longer confined to a single
location but it is able to expand business operations overseas by consideration of effective digital
strategy.
Impact of Artificial Intelligence in retail industry- Usually, trend of AI in retail industry,
which become consider as important trend that will increase the productivity as well as
profitability of organization. AI will help to improve the user experience (Kim, Lloyd and Kang,
2019). Chanel is market leader in retail industry, always trying to implement innovative idea in
the retail channels, deploying Artificial intelligence in business operations and functions.
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ANALYSIS
Analysis of Chanel retailer
Chanel is one of the premier fashion brand in global world, high demand as fashion house
that specialise in haute couture and ready to purchase luxury goods, fashion accessories. These
are always attracting the potential consumer towards brand. Chanel is become consider the
fastest growing retail presence with over 300+ boutique stores, also rapidly expanding the online
retail business presence across globe.
The actual business need of Chanel retailer is increased and expanded its boutique physical
store presence. This is became as imperative way to optimise multiple inventory on better hand
to meet the potential consumer demand (Lewis, Aune and Molokotos-Liederman, 2021).
Recently, it has been enhanced the entire retail reporting solution but needed that provide the
clear visibility of Chanel retailer. Therefore, it is helping to optimise inventory and batter way to
generate more revenue.
Secondary Research
Pestle Analysis
External analysis of Chanel retailer by using Pestle as framework or tool. This is basically
used for strategic planning or management. Pestle stands for political, economic, social,
technological, legal and environmental. These are considered the essential external factors which
influencing the external environment of Chanel retailer.
Political- it is related to the strong influence on the long term business sustainability and
profitability or Chanel. Usually, it has been examined the presence of international stage while
increasing the entire business sensitivity to change in political environment. Moreover, political
stability provide the better stable condition of enterprise. It may support to handle or control
trust, loyalty among different stakeholders. Whenever, frequently changes in the government
policies which are directly harmful for Chanel business performance. At certain level, it should
be developed uncertainty.
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Economic – this type of factor is important for Chanel retailer because it is directly
related to the foreign exchange, interest rate, labor market condition, inflation and saving rates.
Through this way, it can easily identify the entire economic environment of nation (Luce, 2018).
The actual development of economic in which directly influences Chanel retailer performance
while consider all opportunities to increase overall business profitability as well as productivity.
Social- this factor is basically derives the strong influence from societal norms, standards,
values and trends. Therefore, it is very important to understand the demographic trends which
directly influence the consumer demand, preferences, and taste. In this way, Chanel retailer is
mainly focused on the social factor while interacting the consumer to find out their demand.
Afterwards, Chanel will launch the different goods and service according to the consumers. At
that time, digitalization concept will support for Chanel retailer to gain more popularity from
consumer side. Tradition or culture of consumers are completely different, changing rapidly.
That’s why, it is an essential aspect to examine the current demand of consumers.
Technological- Chanel retailer should implement the information and communication
technologies, which has led towards adaptation of innovative marketing techniques. This will
help for enhancing the collaboration with clients. Nowadays, Chanel retailer is using social
media platform to promote the different goods and services in global marketplace.
Legal- Channel should consider legal policy and procedure in their business to maintain
the workplace culture or environment. Sometimes, a retailer is focused on the better health &
safety act in order to provide the facilities.
Environmental- Channel is a retailer that focus on the sustainable development so that it
should consider green approach in order to reduce waste materials, trying to recycle waste.
Chanel should carefully assume as on-going technological innovative, which become stay
ahead of competition. It brings more transformation in the Chanel retailer to achieve its desirable
goal and objective. Moreover, Chanel enterprise is used the modern technologies in which
increasing life cycle of new item development. Therefore, it is also gained more business power
as quickly, diversify, and integrated with flexibility into value chain of retail business.
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SWOT Analysis
Strength- Channel firm can be inspired or motivated the potential consumer with the help
of fashion trend policy. The Weakness of enterprise is Poor financial performance which may
directly affect on the overall business profitability and productivity. Threat of Channel is High
competition level, Lack of resources. The Opportunity of firm is an Advancement of modern
technology that help for improving overall business process.
Primary Research
Theme: 1 Do you think that fashion trend will inspire or motivate the consumers?
Option Response
Yes
No
6
4
Total- 10
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Data Interpretation-
From above analysis, it has identified the opinion or view point of people. It has been
analysed that 6 respondents are agreed and 4 respondents are disagree. Which means that
represent maximum respondent agree with concept of fashion trend that will inspire the potential
customers.
Theme: 2 Do you think that Fast Fashion strategy will improve the Chanel performance?
Option Response
Yes
No
5
5
Total- 10
Data Interpretation-
From above analysis, it has identified the opinion or view point of people. It has been
analysed that 5 respondents are agreed and 5 respondents are disagree. Which means that
represent maximum respondent agree with Fast Fashion strategy will improve the Chanel
performance.
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Theme: 3 Do you think that artificial Intelligence achieve desirable goal of organization?
Option Response
Yes
No
7
3
Total- 10
Data Interpretation-
From above analysis, it has identified the opinion or view point of people. It has been
analysed that 7 respondents are agreed and 3 respondents are disagree. Which means that
represent maximum respondent agree with concept of artificial Intelligence achieve desirable
goal of organization.
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Theme: 4 Is it possible to enhance business from other countries by using modern technologies?
Option Response
Yes
No
8
2
Total- 10
Data Interpretation-
From above analysis, it has identified the opinion or view point of people. It has been
analysed that 8 respondents are agreed and 2 respondents are disagree. Which means that
represent maximum respondent agree with enhance business from other countries by using
modern technologies .
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Theme: 5 Do you think that fashion trend strategy will attract more consumers towards brand ?
Option Response
Yes
No
6
4
Total- 10
Data Interpretation-
From above analysis, it has identified the opinion or view point of people. It has been
analysed that 6 respondents are agreed and 4 respondents are disagree. Which means that
represent maximum respondent agree with fashion trend strategy will attract more consumers
towards brand.
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