Chanel: The Evolution of an Empire By BriAnna DellaSala

Chanel. It’s one of the most signature symbols in the fashion industry and society. The house’s revolutionary designs have proved themselves timeless as they still provide the basis for many designs today.

THE HISTORY OF CHANEL

To understand the history of the brand, it is necessary to travel back all the way to August 19th, 1883, the date in which the house’s founder Gabrielle Bonheur Chanel (more commonly known as “Coco”) was born to a family of little means in Samur, France. Chanel’s childhood was the polar opposite of the luxurious world she would eventually create in her later years. When she was young, her mother passed away and her father sent her off to an orphanage, where she was taught to sew by nuns (A&E Television Networks, n.d.). With this new knowledge, Chanel took up the hobby of making hats, selling them at “Chanel Modes”, her first shop she opened at 21 Rue Cambon in 1910. The classic design of her head wear immediately caught the attention of her clientele and became a hit throughout Paris (Inside Chanel, n.d.).

Three years later, she opened another boutique in Deauville where she made and sold her own clothes. On a cold day, Chanel wore a jersey dress she made in order to keep warm, but received an overwhelming response from her customers, asking if she could make them one. This led her to begin making her own line of sportswear out of the jersey material and sold the collection in her store. She became very popular very quickly amongst wealthy woman because of how comfortable the material was (Inside Chanel, n.d.). Chanel herself once explained,

“My fortune is built on that old jersey I’d put on because it was cold in Deauville"

(A&E Television Networks, n.d.). Jessica Krick (2004), a writer for the MET’s website, explained that at the time, jersey was only used for men’s underwear so it was revolutionary that this movable material was being used for women’s clothing. A popular quote from the designer alludes to this idea of comfort in luxury:

“luxury must be comfortable, otherwise it is not luxury”

(A&E Television Networks, n.d.). The creation of this line was the start of Channel’s mission to rid women of the corsets, and other uncomfortable pieces, and make comfortable luxury the new trend in society.

Chanel took a leap forward in 1915 when she opened her first couture house in Biarritz, and a second at 31 Rue Cambon in 1918.

Two years later the brand came out with its first perfume, the widely known and coveted, Chanel No. 5 with the help of expert perfumer Ernest Beaux and the financial baking of businessmen Théophile Bader and Pierre and Paul Wertheimer (A&E Television Networks, n.d.). In exchange for their investment, the Wertheimers were contracted to receive 70% of the perfume’s profits, Bader was to take 20%, and Chanel would get a mere 10% (A&E Television Networks, n.d.). However, Chanel No. 5 experienced success that none of them imagined. It proved to be a revolutionary perfume of the time with its simple, elegant bottle and complex mix of jasmine and other floral scents. The combination of various scents in No. 5 made it stand out from the other perfumes of the period in that most only consisted of one scent. This difference made its popularity skyrocket to the point that it provided the financial basis for the Chanel Empire (Coco Chanel, 2015). With its success, Chanel made multiple, unsuccessful attempts to take legislation to renegotiate the shares each of the partners received from the perfume (A&E Television Networks, n.d.).

Shortly after the introduction of Chanel No. 5, came some of the other pieces that have shaped the acclaimed fashion house along with its first makeup collection in 1924 (Inside Chanel, n.d.). In 1925 the designer drew inspiration from menswear once again to create the collarless jacket and form-fitted skirt that made up the iconic Chanel suit (A&E Television Networks, n.d.). In 1926 Chanel transformed black from a color of mourning to the epitome of chic style with the creation of the little black dress (Coco Chanel, n.d.). Krick (2004) acknowledged that American Vogue compared Chanel's "little black dress" to the original Ford automobile, to emphasize the popularity of the piece as one of the basics of fashion.

With the growing popularity of the brand and loyal customer base, Chanel employed 4,000 workers and owned five separate boutiques on Rue Cambon by 1935, only a quarter century after Chanel opened up her first shop. The introduction of World War II forced Chanel to fire many of these workers and close all of her shops except 31 Rue Cambon due to the continued high demand for her various perfumes and accessories (Inside Chanel, n.d.). After the war, her previous relationship with German military officer, Han Gunther von Dincklage, formed her many critics, leading Chanel to move to Switzerland for some time in a self-administered-exile (A&E Television Networks, n.d.).

In 1954, at the age of 71, Coco Chanel reopened her couture house, winning over many of her critics with her groundbreaking designs. The year of 1955 brought the 2.55 bag that introduced the brand’s classic quilted leather look and 1957 brought the flattering two-one sling back shoe. It was innovative designs such as these that lead A-listers like Elizabeth Taylor, Jane Fonda, and Jackie Kennedy among many others to love wearing Chanel (Inside Chanel, n.d.).

On January 10th, 1971, Gabrielle Chanel passed away at the Hotel Ritz in Paris. Always ahead of the curve, Chanel once said,

“May my legend prosper and thrive. I wish it a long and happy life!”

And that it did.

The year of 1978 introduced the house’s first ready-to-wear collection and the global distribution of its accessories. In 1983, Karl Lagerfeld was hired as artistic director of Chanel fashion and head designer of haute couture, read-to-wear, and accessory collections (Inside Chanel, n.d.). With Lagerfeld leading, the following years saw the creation of Chanel watches with the Premiere watch (1987), along with the house’s first fine jewelry collection (1993), and the launch of another popular Chanel perfume, Coco Mademoiselle in 2001 (Inside Chanel, n.d.).

BRAND PERSONALITY

The personality of the highly acclaimed fashion house can simply be described by two quotes from the founder:

1. “Luxury must be comfortable, otherwise it is not luxury”

This quote alludes back to the very beginnings of the brand (A&E Television Networks, n.d.). As mentioned in the historical background, the reason Chanel became so popular throughout the years was its ability to bring practicality to fashion. From its start, the house defied the trends of its time by using comfortable fabrics and designing movement-enabled structures to its pieces as can be seen with the jersey dresses, the Chanel suit, and trousers for women, among a variety of other designs and styles Gabrielle Chanel herself saw come out of her house (Chanel: Label overview, n.d.). However, the brand has diminished this emphasis on comfort in luxury during recent years under the direction of Karl Lagerfeld, which will be discussed in following sections (Garelick, 2014, p.424-425). With this difference between Chanel under the direction of the founder herself and Chanel under the direction of Lagerfeld, it could be more proper to say that the brand personality is revolutionary instead specifically bringing comfort to luxury.

2. “A girl should be two things: classy and fabulous”

In contrast, this statement from Chanel provides “the absolute embodiment of the label even a century after it was founded” (Chanel: Label overview, n.d.). This was especially seen during Chanel’s comeback in the 1950s when the brand came out with the leather-quilted handbag that New York Magazine proclaims as the “definition of classy glamour with an edge” (Chanel: Label overview, n.d.). This similar personality is argued to be seen today with many of Chanel’s original fashions being redesigned with Lagerfeld’s classic edgy twist (Garelick, 2014, p.424-425).

Chanel Today: A Loss Of The Brand's Original Mystique And Aura

With many of the luxury fashion houses loosing their original mystique and aura, Chanel has managed to maintain it to a certain extent. This can be attributed to the brand remaining privately held after all these years- placing the house in contrast with many of the other famous luxury fashion houses, who have succumbed to the financial benefits of going public. In 1954 the Wertheimers became full owners of the house and the family still owns the company to this day; thus eliminating the financial pressures of having to answer to stockholders and a board of directors (Karabell, 2015).

Although the brand does not receive direct pressure from the financial sector, they, nevertheless, have been pressured by the modern realities of luxury, which has inevitably led the brand to loose its original mystique and aura. The biography by Rhonda K. Garelick, Coco Chanel and the Pulse of History, alludes to the harsh state in today’s market by referencing the democratization of the brand. Garelick (2014, p. xiv) mentions how millions of people own some piece of the brand whether it be clothing, accessories, perfume, etc., with

“millions more [buying] the infinitely available copies”.

However, the increased availability of the house’s clothing is arguably the most notable in relation to its loss of mystique. The book, The End of Fashion, explains that Chanel was unwilling to dress the masses (Agins, 2000). Thus, the founder’s original mindset was swiftly swept under the rug only seven years after her passing, when the brand came out with its first ready-to-wear line in 1978- clothing made for every day dress and in essence, the every day consumer- along with its increased global distribution (Karabell, 2015). This mass dispersal of the brand image to all social levels has led to the dilution of the exclusive, prestigious air the brand has always held.

In addition, the brand’s original personality and heritage embedded by its founder, Gabrielle Chanel, has faded over the years with the appointment of her successor Karl Lagerfeld. Lagerfeld still leads the fashion house today, in 31 Rue Cambon, and his interpretation of the house has proved to be a wide adaptation -at best- of Chanel’s original ideals (Karabell, 2015). While many of Lagerfeld’s designs are edgy variations on the couturier’s original ones, many styles that he utilizes today completely conflicts with Chanel’s foundations. The first, and most prominent, of them being the use of corsets in the collections; a wardrobe staple at the time of the brand’s founding that sparked Chanel’s revolution into comfortable luxury (Garelick, 2014, p.424-425). Other pieces include denim as well as miniskirts, to which Lagerfeld was quoted by UK newspaper, Daily Mail, responding to the founder’s aversion:

“No one wanted to be told by an old lady that miniskirts and jeans weren't chic. The result was that she lost her power and in the end no one cared about what she did.”

(Abraham, 2010). This disregard for Chanel’s founding ideals has led the brand to depart from its former aura and mystique.

In order to get back its original mystique and aura, Chanel has utilized multiple rarity drivers in its event, digital, and print advertisements.

In 2011, following the trend of “the artification of luxury”, the brand launched “Culture Chanel”, an exhibition at the National Art Museum of China in Beijing that showcased the life and inspirations of Gabrielle Chanel (Kapferer, 2015 p. 77). This installation did wonders for Chanel’s mystique, in that it shaped Gabrielle Chanel as the “creative genius” many already believed her to be (Lawry, 2015). The depiction of Chanel as such, heightens the prestige of Chanel the brand while also alluding to its original personality of rebellious elegance and comfort.

Over the years Chanel has made use of many celebrities in order to create a “‘starification’ of [its] value chain” through both its print and digital advertisements (Catry, 2003). In 2013, the brand was awarded Luxury Daily’s 2013 Luxury Marketer of the Year award in response to marketing efforts such as the use of actress Diane Kruger, in the advertisement titled, “Where Beauty Begins” to help form a deeper consumer connection with their skincare line (McCarthy, 2013). Using a celebrity over the virtually unrealistic look of models, heightens consumer connection in result of their perceived relationship with the given celebrity (Agins, 2000).

Chanel continues with the use of celebrities in its print advertisements as well in order to further uphold and essentially gain back the brand’s original mystique. Many of its prints feature model and pop culture celebrity, Cara Delevingne for the brand’s fall 2014 ad campaign (Schulte-Hillen, 2014). The use of Delevingne immediately alludes to an air of sophistication, comfort (which is exuded with her own self-confidence), and timeliness. In addition, because of her quirky, fun-loving personality, many consumers nowadays love and easily relate to Delevingne.

Will Chanel be around in 100 years?

To this day, Chanel still remains one of the most highly acclaimed luxury fashion houses in the world, to which many others look to for leadership in the evolution of the industry. If the company’s past is any indication of its future, then its timeless designs will still remain so, its guidance will still be sought out, and the essence of its prestige will continue to shatter limitations.

As #85 on Forbes World’s Most Valuable Brands, Chanel experienced a brand value of $6.8 billion last year and sales of about $5.4 billion. These numbers prove impressive in relation to the other luxury fashion-oriented companies, in which only four brands in this sector have been determined more valuable than Chanel: Vuitton, Gucci, Hermès, and Prada. In contrast with Chanel, these four companies are publicly held, thus causing them to experience the pressures and short-term gains of democratization (The world’s most valuable brands, 2015). Therefore, as long as there is a demand for true luxury goods and Chanel remains true to its roots- namely continues to be privately held and in turn does not stray too far from its original mystique and aura- the brand’s value and stature will only continue to grow.

References

Abraham, T. (2010, November 14). 'Coco Chanel? She didn't do as much as people think': Karl Lagerfeld's extraordinary opinions on fashion legend. In Daily Mail online. Retrieved from http://www.dailymail.co.uk/femail/article-1329049/Karl-Lagerfelds-opinion-Coco-Chanel-She-didnt-people-think.html.

A&E Television Networks (Publisher). (n.d.). Coco Chanel. In Biography.com. Retrieved from http://www.biography.com/people/coco-chanel-9244165#related-video-gallery.

Agins, T. (2000). The end of fashion. New York, NY: First Quill.

Catry, B. (2003). The great pretenders: The magic of luxury goods. Business Strategy Review. Vol. 14. (Issue 3). p. 16.

Chanel: Label overview. (n.d.). The Cut in NY Mag. Retrieved from http://nymag.com/thecut/fashion/designers/chanel/.

Coco Chanel. (2015, December 21). In Encyclopædia Britannica online. Retrieved from http://www.britannica.com/EBchecked/topic/105474/Coco-Chanel.

Coco Chanel. (n.d.). In Lifetime online. Retrieved from http://www.lifetimetv.co.uk/biography/biography-coco-chanel.

Garelick, R. (2015). Coco Chanel and the pulse of history. New York: Random House.

Inside Chanel. (n.d.). Inside Chanel. Retrieved from http://inside.chanel.com/en/timeline/1883_birth-of-gabrielle-chanel.

Kapferer, J. (2015). Kapferer on luxury. Philadelphia, PA: Kogan Page Limited.

Karabell, S. (2015, October 12). Fashion, finance and Coco Chanel. Forbes. Retrieved from http://www.forbes.com/.

Krick, J. (2004, October). Gabrielle “Coco” Chanel (1883–1971) and the house of Chanel. In Heilbrunn Timeline of Art History in the Metropolitan Museum of Art online. Retrieved from http://www.metmuseum.org/toah/hd/chnl/hd_chnl.htm.

Lawry, C. (2015, February 27). Book excerpt: The management of luxury. Luxury Daily. Retrieved from http://www.luxurydaily.com/book-excerpt-the-management-of-luxury/.

McCarthy, J. (2013, December 31). Chanel is 2013 luxury marketer of the year. Luxury Daily. Retrieved from http://www.luxurydaily.com/chanel-is-2013-luxury-marketer-of-the-year/.

Schulte-Hillen, S. (2014, July 15). Cara Delevingne in Chanel’s fall 2014 campaign: Boxing is officially fashion’s favorite sport. Vogue. Retrieved from http://www.vogue.com/946497/cara-delevingne-chanel-ad-fall-2014-boxing/.

The world’s most valuable brands. (2015). Forbes. Retrieved from http://www.forbes.com/companies/chanel/.

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