Chanel closes a record-breaking 2023, ignoring the difficulties of French competitors such as LVMH and Kering, establishing itself as the best-known luxury brand in the world and announcing the opening of new stores in Shanghai. Precisely at the moment in which China is putting a strain on the accounts of the other big names in the other range, excluding Hermés, Chanel is therefore focusing on the Asian market despite the shift in Chinese consumer spending towards other markets, following the resumption of travel.
Chanel's 2023
In 2023 land Chanel sales hit a new record, growing by 16% to 19,7 billion dollars thanks to the excellent performance recorded in all markets thanks to the return of tourists to many key destinations, but also to the demand from local customers which remained strong.
Profits instead increased by 3% to 4,7 billion, while operating profit it rose by 10,9% to 6,407 billion, while in 2022 growth was "only" 5,8% to 5,776 billion dollars.
Investments grew by 20% at 2,463 billion and the capital expenditure stood at 1,227 billion, equal to a percentage of 6,2% of turnover. Worldwide, Chanel's workforce increased by 14%, going from 32 thousand to 36.500 people, above all "for the strengthening of the digital sectors", explains the company.
In a note, the luxury house talks about “another exceptional year”, in which Chanel “once again achieved a solid financial performance in 2023, with double-digit growth across all categories,” Chief Financial Officer Philippe Blondiaux said. “After three years of exceptional growth for our sector, the context is more difficult,” he added.
The company also underlines that in the last decade both turnover and staff have more than doubled, in the last five years the size of its distribution network has also doubled, which currently amounts to 612 boutiques, underlined the CEO Leena Nair.
Chanel opens new stores in China, but also has eyes for Italy
Just around the time the quarterly reports of the other big luxury companies showed less than encouraging results in China, second Reuters, Chanel's goal would be to open new stores in Mainland China. A private salon and repair center will open in Shanghai in the coming months, with the company likely to announce new openings in the same city soon.
"The ability to scale is really important“said CEO Leena Nair, who, during a recent trip to China, noticed that young buyers are interested in luxury purchases as long-term financial investments. “China is still a place where we are, I would say, underdistributed,” added Chanel finance director Philippe Blondiaux, citing the numbers: 18 stores for Chanel versus 40-50 for competitors.
But there is also Italy in the maison's strategy. Among the relevant events of 2023, the opening of the large shop in via Montenapoleone, in Milan, is also mentioned, the second Chanel boutique in the city and the first in Italy to offer high jewellery, alongside watchmaking and fine jewlery.
