Chanel Headquarters Officially Moved To London

by Min Leung Saller According to fashion business news, the only giant at the top of the luxury pyramid that is not listed, the French luxury brand Chanel recently announced that the group's corporate restructuring since 2016 has been completed, and replica Chanel Limited, headquartered in the UK, has officially become the parent company of the group.

Chanel Limited is owned by Litor, the holding company of the Wertheimer family in the Cayman Islands, and is headquartered in a building on Bond Street, London, UK. The flagship store acquired at a premium of 30%.

Litor is owned by the Wertheimer brothers, Alain Wertheimer is the chairman of Chanel, and Gérard Wertheimer is the chairman of Chanel's watch and jewelry business. They each own half of Chanel's shares. The latest valuation of the shares held is about 37.7 billion US dollars, a total of 75.4 billion Dollar. 

Thanks to the continued high consumer demand, Chanel's sales in 2021 rose 49.6% year-on-year to $15.6 billion, and the assets of the brothers Gérard and Alain Wertheimer also soared 37% to $90 billion last year.

Chanel said in a statement that the establishment of Chanel Limited was a decision made by the group in 2018 to unify the management of the companies under the group, thereby simplifying and optimizing the administrative and legal structure, reducing decision-making levels, and improving operational efficiency. Prior to this, Chanel's operations in different markets around the world were managed by a number of holding companies, and it was not until September 2018 that the brand brought together 50 human resources, legal and financial staff to London.

Regarding the move to move the headquarters to London when the United Kingdom leaves the European Union, Chanel said that London is more suitable as the headquarters of an international brand than Paris. Not only the language used is universal, but the United Kingdom also has more robust corporate governance regulations. Conducive to the long-term stable and sustainable development of the brand.

As an international luxury brand with stores in 110 countries around the world, Chanel has large offices in New York, Paris, Hong Kong, Geneva, Shanghai and Tokyo. However, Chanel emphasized that it is still a brand originated in France, and will continue to invest, recruit and expand in France and other important markets in the future.

It is reported that Leena Nair, the new global chief executive who was appointed by Chanel after a lapse of six years at the end of last year, has started working in London since February, leading all work of Chanel in the world. Bruno Pavlovsky, president of Chanel's fashion business since 2002, is currently the only head of Chanel Limited in France.

It is worth noting that Leena Nair was previously Unilever's head of human resources and a member of the executive committee, and has no experience in luxury brands, nor in retail operations and design marketing. Some people in the industry believe that Chanel is interested in her background in human resources. In an environment full of variables, human capital is as important as financial capital, and talent is the most important core asset.

Chanel Chief Financial Officer Philippe Blondiaux said in a post-2021 earnings call, "It's too early to say in which direction Leena Nair will lead the company, but it's safe to say that in the next few months or early next year. She will have a plan.

Philippe Blondiaux emphasized that although the market still faces headwinds and uncertainties, Chanel has maintained a positive growth momentum so far, which to a certain extent confirms the brand's refusal to sell online ready-to-wear or leather products. The strategic decision is correct.

With the restart of international travel between the UK, US and Europe, Chanel plans to invest more than US$1 billion and add more than 3,500 employees in 2022, focusing on product quality, customer experience and transformation of boutiques and supply chains. In order to cope with the increasingly fierce market competition.

In order to obtain long-term and sustainable growth momentum for its performance and make up for its market share in Russia and Ukraine, in addition to continuing to adjust product pricing according to actual conditions, Chanel will speed up its layout in Asia, especially the Chinese market, and plans to open about 10 per year. 20 boutiques were renovated at the same time to provide consumers with a more private shopping environment.

Industry insiders pointed out that although Chanel has never admitted its intention to enter the capital market, from the first time in 2018 to actively disclose performance data in a century, to changing the brand headquarters, optimizing the structure, and then appointing a new CEO, every step is to a company with a strong reputation. Listed normative groups move closer.

And this reflects to a certain extent the fact that the strong rise of Richemont Group, the parent company of the world's largest luxury goods group LVMH, Hermes and Cartier, has threatened the development of replica Designer handbags.

Last year, Bruno Pavlovsky made a rare mention of competitors in media interviews. In an interview with Chanel at the show of the 2021/2022 early spring vacation series released at Harbour Creek in Dubai, he bluntly stated that the growth of Dior's market share has no impact on Chanel. But denying competition just confirms the fierce competition on the side.

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Created on Oct 12th 2022 09:00. Viewed 120 times.

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