Communication Student's Analysis of Chanel Company's Business Skills

This report provides a comprehensive analysis of Chanel, a prominent brand in the fashion industry. It begins with an executive summary highlighting Chanel's exclusivity, trendsetting capabilities, and environmental irresponsibility. The introduction sets the stage by defining the fashion industry and its different tiers, with Chanel being a luxury brand. The report explores Chanel's history, product range, and distribution channels. It delves into Chanel's ability to sustain exclusivity through its products, sustained profit margins, and high-end consumer base. Furthermore, the report examines Chanel's role as a trendsetter, influencing fashion choices with its clothing, accessories, and fragrances. However, the report also critiques Chanel's environmental practices, noting its lack of eco-friendliness in manufacturing. The conclusion summarizes Chanel's strengths and weaknesses, while offering recommendations for improvement, such as aligning with customer values, enhancing customer loyalty, and prioritizing environmental responsibility. The report emphasizes the need for Chanel to balance luxury with sustainability to maintain its market leadership. The bibliography includes cited sources for further reading.

RUNNING HEAD: COMMUNICATION TO BUSINESS SKILLS
Communication to Business Skills
With Special Reference to Chanel Company
Student Details

COMMUNICATION TO BUSINESS SKILLS
Executive Summary
The fashion industry is the sector that deals with meeting up of fashionable and luxury
demands of its customers. Chanel is considered a big fashion brand in the market. It provides
a wide range of products to its customers. By providing luxury and fashionable product to its
customers, Chanel is able to sustain exclusivity from a very long time. On the other hand, it is
known for trendsetter also. Its products become trends easily with the pace of time. Apart
from a range of good aspects of the company, it also has some bad aspects. It is considered
that the company mainly not follow the ground rules of the ecology and environment. This
stops them from becoming the key player in the market. In order to become one, they need to
stop harming the environment in order to produce luxury for its customers.
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COMMUNICATION TO BUSINESS SKILLS
Contents
Executive Summary...................................................................................................................2
1. Introduction.........................................................................................................................4
2. Chanel Company.................................................................................................................4
2.1 Chanel Sustain Exclusivity.............................................................................................5
2.2 Trend Setter....................................................................................................................5
2.3 Environmentally Irresponsible.......................................................................................6
3. Conclusion and Recommendations.....................................................................................6
Bibliography...............................................................................................................................8
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COMMUNICATION TO BUSINESS SKILLS
1. Introduction
The industry that works to meet the appealing demand for fashionable and creative trends
regarding what one should wear is commonly called as the fashion industry. In this industry,
there are different levels that divide fashion according to their level of luxury and comfort.
The levels are commonly divided into luxury wear, couture, affordable luxury wears,
discounting clothing and mainstream clothing (Major & Steele, 2018).
Sometimes the companies of fashion industry apart from clothing also deals in other
fashionable products like jewellery imitation and real both, makeup and skin care products
and fashion accessories.
The main thing that separates fashion industry from other clothing industries is that fashion
industry focus on making luxury clothing or items for its customers, on the other hand, other
clothing industries focus on manufacturing clothing or other items to wear for the public.
Their main aim is to serve masses and the aim of the fashion industry is to serve high classes.
In this report, good and bad aspect of a chosen company from the fashion industry is
discussed and at the end, some recommendation is given (Major & Steele, 2018).
Source: A glimpse of fashion clothing and accessories (Design, 2018)
2. Chanel Company
A female singer named Coco Gabrielle Chanel in early 1900 founded a fashion brand. The
name of the brand was Chanel. It is now considered one of the best brands in the fashion
industry. The passion of Coco was to make simple and comfortable products for its
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COMMUNICATION TO BUSINESS SKILLS
customers. At that time instead of custom-made dresses, she made hourglass figure dresses
and became the glass breaker(Chanel, 2019).
Chanel Company deals in a variety of products and distribute to its customers from various
channels of distribution even from digital channel. Their product line includes products like
fashion clothing, high and fine type of jewellery, makeup and skin care products, world-
famous fragrances like Chanel 5 perfume and some fashion accessories(Chanel, 2019).
In this report, an attempt is made at identifying the good and bad about this particular
company. It is so because Chanel is considered as one of the best and in order to find its
business skills, it is important to look into its good and bad aspect.
2.1 Chanel Sustain Exclusivity
The fashion industry is a very wide and challenging industry as it consists of various top
companies that are competing with one another in order to be successful in nature. As already
told in above paragraphs Chanel was founded in the early 1900s and until today it holds a
demanding position in the market. Moreover, in the future it is expected to be a key player in
the fashion market.
Chanel Company is still maintaining its exclusivity. It is on a sustained path to the
exclusiveness of its products and services. Exclusivity simply means specialty and on the
other hand, sustainability means the ability to maintain a particular level or path. The
products of Chanel are both special and from a long time maintaining a level of serving high-
end consumers (Fang, Jianyao, Dick & Huangting, 2012).
Sustained exclusivity of Chanel company can be seen by it continues profit margins, goodwill
in the market, effective demand of its fragrances and clothes, increase in the number of high-
end consumers and continues urge to evolve and develop according to the changing times. A
perfume made by Chanel named as Chanel 5 gets so famous among its customers and still,
the company is famous for manufacturing fragrances that able to sustain exclusivity.
2.2 Trend Setter
Chanel Company is also considered trendsetter for a very long time. Trendsetter refers to
someone that usually popular fashion clothing and accessories by wearing it in a different or
unique way. It is called trendsetting when others follow the fashion sense of that person
(Diona & Arnould, 2011). With this view, it becomes a trend among the public.
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COMMUNICATION TO BUSINESS SKILLS
Chanel Company can be said as a trendsetter as the clothes, jewellery or accessories provided
by the company usually influence a lot of people to wear it and in this way, it becomes a
trend among public. The company came into existence in the early 1900s and from then it
provided a variety of clothes and other fashion products that become a trend at that time.
The company until today has launched many products that set the trend of those products
among its customers and others (Kapferer, & Bastien, 2009). The list of products is very long
but some of them are its hourglass figure dresses, black cocktail dress and the most famous
one its Chanel 5 named perfume. It also set trends by providing high-end jewellery that
always based on some theme. The makeup range and skin care products of Chanel also
provides the brand competitive advantage over others by setting trends.
2.3 Environmentally Irresponsible
The company Chanel with its ability and efficient imagination to reinvent and evolve fashion
is comparably not considering environmental friendliness while manufacturing its products
and distributing them to its consumers. The company is considered irresponsible towards the
environment present around them (Bastien & Kapferer, 2013).
Environment irresponsibility means when an individual or group of individuals conduct their
business activities without taking care of core environmental factors. It goes for the selected
company for this report that is Chanel.
The all-time famous designer of the company Karl Lagerfeld is known for his creativeness
and exclusive vision. However, the designs provided by Karl and the company somehow
ignore the importance of the environment and usually provide animal skin based, plant-based
manufactured clothes, and other fashion items. The company tried to launch a range that was
eco-friendly with the name green-style few years back (Chanel, 2017). However, the plan did
not get much success.
3. Conclusion and Recommendations
Chanel Company has proven itself a number of times in the fashion industry. They know very
well that their customers expect perfection and efficiency from them. They are continuously
trying hard to live up to the expectations of their consumers. With the help of sustained
exclusivity, the company is able to maintain its competitive position in the fashion market.
It is considered one of the best options when customers are looking forward to purchasing the
products that are highly fashionable and are high end in nature. In order to do so, the
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company needs to maintain a set pace of uniqueness and continue to be setting trends in the
future. The company has around 310 stores in all over the world and trying to expand its
business to the places where it can serve best.
Chanel Company is known for its sustainability, uniqueness, exclusivity and high profile.
There are many good aspects of Chanel however apart from this it is also considered that
Chanel serving its customers without following the rules of the environment or our ecology.
This is stopping them from becoming the key market player in the fashion industry. In order
to achieve this here, some measures have been suggested for Chanel Company to look upon
them.
 Chanel Company should advocate the beliefs of its customers and produce according
to that rather than just focusing on providing luxury to them.
 The company can entangle one or two time customers into loyal customers by
influencing them completely with the customer rituals or services provided by the
company.
 Mainly brand focus on proving themselves better than their competitors, however, the
aim of Chanel is to provide luxury to its customers. It can easily connect to its
customers if it provides luxury to them without harming the environment. This will
bring loyal customers for Chanel (Maehle, Otnes & Supphellen, 2011).
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Bibliography
Bastien, v. & Kapferer, J., 2013. More on Luxury Anti-Laws of Marketing. In Luxury
Marketing. Gabler Verlag, Wiesbaden. pp.19-34.
Chanel, C., 2019. Chanel. [Online] Available at: https://www.chanel.com/us/high-jewelry/
[Accessed 10 April 2019].
Chanel, G., 2017. Chanel goes GREEN. [Online] Chanel Available at: http://my-
greenstyle.com/en/chanel-goes-green/ [Accessed 2 May 2019].
Design, F., 2018. Green Is The New Black: Sustainability In The Fashion Industry. [Online]
Available at: https://www.rmcad.edu/green-is-the-new-black-sustainability-in-the-fashion-
industry/ [Accessed 2 May 2019].
Diona, D. & Arnould, E., 2011. Retail Luxury Strategy: Assembling Charisma through Art
and Magic. Journal of Retailing, 87(4), pp.502-20.
Fang, L., Jianyao, L., Dick, M. & Huangting, S., 2012. Self‐congruity, brand attitude, and
brand loyalty: a study on luxury brands. European Journal of Marketing, 46(7-8), pp.922-37.
Kapferer, J. & Bastien, V., 2009. The specificity of luxury management: Turning marketing
upside down. Journal of Brand Management, 16(5-6), pp.311-22.
Kapferer, J.N. & Bastien, V., 2012. The Luxury Strategy: Break the Rules of Marketing to
Build Luxury Brands. 2nd ed. Kogan Page Publishers.
Karbo, K., 2011. Gospel According to Coco Chanel: Life Lessons From The World’S Most
Elegant Woman. New York: Rowman & Littlefield.
Maehle, N., Otnes, C. & Supphellen, M., 2011. Consumers' perceptions of the dimensions of
brand personality. [Online] Available at:
https://onlinelibrary.wiley.com/doi/abs/10.1002/cb.355 [Accessed 10 April 2019].
Major, J.S. & Steele, V., 2018. Fashion industry. [Online] Available at:
https://www.britannica.com/art/fashion-industry [Accessed 2 May 2019].
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