Do You Want To Be The Boss Of Chanel On Douyin?
On July 12th, Douyin launched an account called ‘The Picture of Beautiful Life’. From 12th to 23rd, every day at 0 o’clock, a Chanel video will be launched. That’s right, it is Chanel-showing the beautiful 12 hours of J12 watch through 12 videos. Users can jump directly from Chanel’s official website from Douyin. The collaboration between Chanel and Douyin is really surprising. J12 is a series with a wide range of audiences in Chanel watches. ‘Approaching young people through vibrato’ is logical, but the public may think that this cooperation represents the entire brand. Should we cater to young people? Chanel may be more tangled than other luxury brands, which is related to the annual performance and whether it can maintain its position as an industry leader. /// Over the past two years, overseas media have reported certain financial data of Chanel. In 2016, Chanel disclosed its 2015 results in the Netherlands, with a turnover of more than 6.2 billion U.S. dollars, a decrease of 17%; the next year, still in the Netherlands, Chanel reported an annual revenue of nearly 5.7 billion U.S. dollars, a decline of 9%, and its profits also fell. Chanel is not a listed company and has no obligation to disclose any financial data to the public. Its owner, the Wertheimer family, has always been low-key, hiding in the dark as much as possible. When the media reported the two billionaires, it was even hard to find the right photos of them related to Chanel. Chanel’s outflow of data in the Netherlands may be due to market rules triggering certain regulatory requirements. But it is not clear to the outside world whether this billion-dollar sales is Chanel’s entire plate or just a part of its business. But this has sparked debate. For example: Is Lafayette old? Is Chanel’s work innovative? Does Chanel’s total income depend too much on perfume? Does Chanel rely too much on the founders’ classics? In Paris, the news that Chanel might be acquired is even more subtle. Something unexpected happened this year. Last month, Chanel announced its 2017 financial data to the outside world through overseas media: sales exceeded 9.6 billion US dollars, an increase of 11%, while operating profit reached nearly 2.7 billion US dollars, with cash flow of more than 1.6 billion, almost Debt. sparkling. We tried to find the complete financial report of Chanel, but whether we searched it from various official channels ourselves or asked the industry experts who are familiar with overseas capital markets, we found nothing. We inquired through the message channel of Chanel’s official website and did not get a reply. It seems that Chanel’s disclosure this time is not the detailed financial report of a listed company, but a small number of major data to specific media. /// Chanel ‘publishes financial data for the first time in 108 years’, what made them break the silence? The more mainstream view of the fashion industry is that Chanel is expressing these layers of meanings: 1. Chanel is operating very well, with higher sales than Gucci, which is comparable to LV, and is still a luxury industry leader. 2. Chanel’s performance is growing, and there is no pressure to be forced to sell because of operating difficulties. 3. Chanel’s owner, the Wertheimer brothers, is still full of energy and will continue to run Chanel, although he is almost seventies; creative directors who are over 80 years old will not retire. To continue our discussion, we need to answer the question: Chanel is not a listed company and is not subject to the rules of listed companies. Is this ‘media data’ trustworthy? LVMH, Kering, and Hermes are listed companies. Can Chanel and these rivals compare their data together? We consulted several industry observers via email. Francis Gouten, who lives in Hong Kong, was a senior executive of Richemont’s Asia Pacific region and currently runs his own luxury industry consulting firm. He replied to us that the data given by Chanel CFO is trustworthy. Dana Thomas, author of How Luxury Lost It’s Luster, which is widely acclaimed in the industry, also responded to our email. She also believes that the data of Chanel is true and reliable. There are also different views. ‘Forbes’ contributor Pamela N. Danziger commented in his column that Chanel counted the asset income from the sale of its subsidiaries in the 2017 results, and the actual product sales were not so good. Please allow us to set aside the question ‘Is the data comparable?’ And continue to study the reasons why Chanel actively sent data. In recent years, Gucci has been very high-profile and has publicly vowed to be the boss of the industry. Gucci celebrates selling more than Hermès and celebrates approaching the LV scale-not mentioning Chanel every time. After Alessandro Michele became the creative director of Gucci in 2015, he opened a money printing machine for Kering, and Gucci’s performance increased by more than 35% for 5 consecutive quarters. In the first quarter of 2018, Gucci achieved nearly 1.9 billion euros in revenue. At this time, Gucci shouted its goal of 10 billion euros and was ambitious. The LV business is also very prosperous. Of the more than 15 billion euros in sales of the LVMH fashion leather goods department in 2017, the industry estimates that nearly 10 billion of them come from LV. The sky-high iPhone case in 2016, co-branded with Supreme in 2017, and found the Off-Withe founder to be the creative director of menswear in early 2018. LV also earned the attention of the fashion industry. Opponents have been so enthusiastic about the topic of ‘the battle of the industry leaders’. If the data is not published and Chanel will not continue to participate, Chanel’s status in the public mind may really decline. Chanel proved in a decent way that he was still the king. // However, who is the boss who compares one year’s sales with each other is biased. Who is better at designing and marketing? Has the industry landscape really changed significantly in recent years? Gucci, Dior, and LV are striving to become younger in different ways and lead the industry. Many brands have downplayed their historical heritage and moved closer to street, rock, and dark styles. Chanel and Hermès seem to be unmoved, and they attach more importance to maintaining their true qualities than catering to the market. They both sent out perfume product lines, doing activities and doing e-commerce to cater to young people. Chanel this time on the vibrato, sent a watch with a wider audience. But in the ace product lines of handbags and fashion, they did not choose the reincarnation change of Dior. Chanel still has a place in the eyes of the old-school rich, especially in Europe and the United States. Francis Gouten said that Chanel has maintained a consistent history and image since Coco Chanel. He believes that competitors such as LV or Gucci are the new darlings in the fashion industry and show strong positive creativity, which is exactly the shortcoming to make up for the lack of successful history. Sindy Liu, an ELLE contributor who lives in London and has been observing fashion business for a long time, expressed similar views. She believes that Chanel is still very creative, thinking about how to maintain a consistent brand image over the long term, rather than overly pleasing customers in certain markets or certain ages. Interestingly, Dana Thomas responded to our email and pointed out that the reason for publishing the data is likely to be that the Wertheimer brothers want to sell Chanel, and the rumor in Paris may be true. In this regard, we also left a question on the Chanel official website, but did not get a reply. Good performance can only prove that ‘will not be forced to sell because of operating difficulties’. Internationally, many companies that perform well are being acquired. /// Is Chanel likely to be sold ‘for other reasons’? Let’s look at feasibility first. Chanel has sales of nearly US $ 10 billion and net profit of nearly US $ 2 billion. If it is estimated based on the price-earnings ratios of LV and Cucci parent companies, then Chanel’s market value is between US $ 45 billion and US $ 55 billion. So, if you plan to buy Chanel, you have to prepare at least $ 50 billion. Chanel really wants to sell, who will take over? The most likely buyer in the rumor is the owner of LV, the owner of LVMH Group, Arnold. Anuo is like a gluttonous snake. From Dior, LVMH Group now has 70 brands. Over the past two decades, Arnold had planned to acquire Gucci and had bought more than 20% of Hermes shares. However, Arnold has not been accepted by the founding family of luxury brands, thinking that he is a barbarian outside the door of luxury goods, which is why the Pino family and Hermès resolutely resisted in the Gucci acquisition war. To the Wertheimer brothers, Arnold may not be ideal. French media have reported that Arnold met with the Wertheimer family, but Arnold himself publicly denied it in April of this year. Back then, Gucci chose the Pino family among top players-if Chanel really wants to get married, Kaiyun will also be a promising Lang Jun. Kering is striving to become a pure luxury company: Puma, a sports brand just spun off at the beginning of the year, sold StellaMcCartney and Christopher Kane back to the designer-and Chanel is clearly the top item in luxury. Kering is not as wealthy as LVMH Group, which is a difficult point. Of course, the possibility is discussed here. The two sides have not even heard of a scandal. We also think it is possible for Chanel to be sold. An important basis is that the Wertheimer brothers, who have been at the helm for more than four decades, have not yet clearly identified a successor. This also makes the outside world speculate that the next generation of Wertheimer’s family may no longer want to run the family business. Successors need to be cultivated, such as LVMH, Antoine Arnault and Delphine Arnault, a pair of children of Arnold, who have worked in the group for many years and have already joined the board of directors. There is also the Swatch Group, the watch kingdom controlled by the second generation of the Hayek family. The sister’s son Mark, the oldest grandson of Hayek, has already become the CEO of the high-end brands Blancpain, Breguet and Jaquero After years of training, I was well prepared for succession. The mysterious Wertheimer family, with the exception of the brothers Alain and Gérard, who are nearly seventy years old, can hardly find any news about their descendants’ participation in Chanel’s company. Chanel also announced a reorganization plan to centrally manage all of its companies: a London-based holding company that brings together all its businesses and employees in one place. If you want to sell, it makes sense to do so. It is also possible that, like Rolex, in the absence of future generations willing to take over, as a family fund custody of corporate assets, hire professional managers to look after the family business for the Wertheimer family. Chanel is young, e-commerce, and industry leader … these things were not very enthusiastic, and the trend of the times is so fierce, they are also making some changes that won’t hurt. The competition is so fierce that if Chanel has never appeared young and powerful leaders, the outside world will have more and more questions about ‘selling or not?’ Lu Xi’s interview with the headline signing author of the Department of Notes applies to join the readership group, please send your real name + detailed professional information + personal WeChat to [email protected]