How Chanel Lost Its Place

The Stakes of Blazy's Appointment [00:00]

• Chanel's first collection under new creative director Matthew Blazy is seen as the brand's biggest gamble in luxury fashion.
• The appointment aims to address a period of profitability but perceived directionlessness following Karl Lagerfeld's passing.
• Chanel is described as an $18 billion empire controlled by the Verheimr family since the 1920s, now feeling vulnerable.

  Everyone wanted to see if Matthew Blazy could pull off the impossible, stepping into the shoes of Carl Loggerfeld.

The Legacy of Karl Lagerfeld and Viard's Tenure [00:51]

• Karl Lagerfeld, who passed away in 2019, was more than a designer; he was Chanel's identity, leaving a significant vacuum.
• His successor, Virginie Viard, a long-time associate, maintained the brand's profitability and codes but was criticized for producing competent, beautiful, yet ultimately forgettable collections over five years.
• Viard's collections were characterized by the presence of all Chanel codes (tweed jackets, quilted bags, pearls) but lacked a distinct vision or point of view, relying on the logo for appeal.

Financial Performance and Market Challenges [03:15]

• Chanel's revenue in 2023 was $19.7 billion, dropping slightly to $18.7 billion in 2024, a 4.3% decline.
• Prior growth was largely driven by price increases, such as pushing the classic flap bag to over $10,000, rather than cultural momentum.
• The brand is losing cultural buzz, with press coverage shifting from future anticipation to nostalgic reflection.
• Competitors like Hermès are outpacing Chanel in revenue growth and cultural relevance, while newer brands like The Row and Bottega Veneta are gaining traction.

The luxury market was more competitive than ever, and Chanel was losing ground, not in revenue, but in relevance.

Matthew Blazy's Design Philosophy [05:10]

• Matthew Blazy, previously the creative director of Bottega Veneta (2021-2024), is credited with transforming the brand into a critically acclaimed house.
• His approach is characterized by quietness, meticulousness, and restraint, focusing on thoughtful, beautiful clothes rather than chasing trends or celebrity endorsements.
• His Bottega Veneta shows were lauded for their craftsmanship, architectural tailoring, and a timeless color palette.
• Blazy's work appealed to fashion editors and influencers and was worn by celebrities who genuinely loved the designs.

The Core Challenge: Scale and Brand DNA [06:43]

• Bottega Veneta's niche appeal works for its smaller scale, but Chanel, a much larger brand, needs to appeal to the mass affluent and be aspirational, not just exclusive.
• Chanel's identity is built on bold gestures, iconic logos, and French glamour, historically featuring spectacles and grand statements, exemplified by Coco Chanel and Karl Lagerfeld.
• Blazy's reputation for "whisper quiet luxury" contrasts with Chanel's overtly recognizable brand symbols like the double C logo and the 2.55 bag.
• The risk lies in Blazy either playing it too safe and becoming forgettable like Viard, or pushing too hard and alienating the core customer base.

Chanel is not a quiet brand. It's built on bold gestures, iconic logos, and a very specific kind of French glamour.

Blazy's Mandate and the Debut Collection [08:25]

• Chanel needs innovation without alienation, fresh appeal, and renewed cultural heat, while respecting its iconic codes.
• The Verheimr family is betting that Blazy's craft-focused approach will elevate Chanel without erasing its essence, attracting younger consumers without alienating older ones.
• The aging customer base presents a long-term risk to the brand's cultural power, requiring Blazy to connect with a new generation.
• Blazy's first collection on October 6th at the Grand Palais, themed as a planetarium, blended Lagerfeld-level spectacle with Blazy's minimalist precision.
• The collection reinterpreted Chanel's codes, such as tweed, pearls, and the quilted bag, with softer silhouettes and deconstructed elements, aiming for a deliberate restoration rather than a revolution.

The overall effect felt deliberate, less a revolution, more a restoration.

Market Reception and Future Outlook [11:41]

• Press reception was largely positive but not ecstatic, with Vogue Business noting it repositioned Chanel in fashion's conversation, generating approximately $30 million in media impact value within 48 hours.
• Social media reactions were divided, with some appreciating the restraint and craft, while others desired more spectacle.
• Early industry reports suggest a cautiously optimistic response from buyers, with strong interest in handbags and tweed jackets attracting younger customers.
• The real test will be in 6 to 12 months, assessing Blazy's ability to sustain momentum and take further risks.
• Blazy faces a similar choice as previous Dior directors: refinement or reinvention, with an estimated two years to deliver both cultural heat and commercial growth.

History has shown what happens when a creative director plays it too safe.

The Formula for Luxury Survival [14:40]

• In luxury, cultural heat drives desire, desire drives pricing power, and pricing power drives profit; losing cultural heat impacts all subsequent elements.
• The brand's prestige can fade quietly if not actively managed.
• Chanel needs to avoid irrelevance in a crowded market where conversations move quickly.
• The question remains whether Blazy represents Chanel's next rise or another slow fade, with the understanding that the industry will not wait indefinitely for a turnaround.

The stakes couldn't be higher. In luxury, the formula never cha