Despite a recent trend of Chinese shoppers spending more in other markets as they resume traveling, French luxury brand Chanel is moving forward with plans to open more stores in mainland China.
Emphasisng their importance of expanding their presence, Leena Nair, CEO, Chanel, says, the brand, renowned for its tweed suits, quilted handbags, and No. 5 perfume, sees potential in the Chinese market.
During a recent visit to China, Nair observed a keen interest among young shoppers in luxury items, viewing them as long-term financial investments. However, first-quarter sales updates from various luxury brands showed mixed results in mainland China, raising concerns about a swift rebound in Chinese demand for high-end fashion.
This uncertainty clouds the industry's outlook, which had hoped that China would provide a significant boost as post-pandemic spending in the United States and Europe slows.
Chanel has only 18 fashion boutiques in China, compared to the 40 to 50 stores that competing brands operate, notes Philippe Blondiaux, Chief Financial Officer.
