Good news for the ultra-rich: Chanel is working to open private boutiques for its VICs (Very Important Clients). The luxury couture brand, one of the most well known, relevant and exclusive haute-couture brands in the world, is creating new private experiences for the most valuable clients. The idea behind it is to have invite-only stores where only the most exclusive items of the brand will be sold to clients that are ultra-loyal customers. The French luxury company has reported that revenues that Chanel has tripled its profits as sales for its ready-to-wear, jewelry and watches surge past pre-pandemic levels. While beauty and fragrance sales have been muted in comparison, the sector has grown its direct-to-consumer sales. While sales for Chanel have seen rapid growth, it is still approximately one-third slower than Hermès, the luxury brand’s leather goods rival.
In order to support traffic from its top-spending clients, CEO Philippe Bondiaux announced that it will open these private boutiques for its top-tier clients starting in early 2023 in key Asian cities.
Chanel was already famous for their bi-annual price hikes. To give you an idea: the average cost for a Chanel IT-bag has tripled over the last 15 years. The actual worldwide inflation and the rise of all consumer good prices forces the couture houses to focus on the absurdly wealthy, as for them exclusivity has no limitation.
By doing so, their more ‘regular’ stores become more accessible for their normal client base, looking mostly for accessories like sunglasses, scarves and faux-bijoux instead of an entire SS wardrobe.