Chanel’s Digital Strategy Embodies the Exclusivity of Luxury Brands

The digital age is upon us, and combined with the COVID-19 pandemic, most retailers have transitioned to promoting online shopping instead of traditional in-person purchasing. The fashion industry has had a massive shift in regard to its relationship with technology, with brands, including luxury designers, opening up online retail as an option for customers. However, one brand has managed to stand firmly against this migration toward e-commerce with a stubborn refusal to sell its fashion products online. As a widely-popular French luxury fashion house, Chanel’s decision to keep its clothing and accessories offline may baffle many customers. However, there is a deeper reason behind its e-commerce policies beyond simple stubbornness and haughtiness. 

While other luxury brands delved deeper into the expansion of online shopping, Chanel focused its attention on improving its boutique experience, especially for its wealthy customers. The brand announced that it would be opening a series of private stores starting in 2023 in Asia. Aside from wishing to offer VIP treatment, Chanel’s focus on their boutique experience originates from the brand’s perception of what haute couture means. “Come into the boutique, try things on, decide what you like – that’s part of the experience. And the people who don’t want that? They don’t come to Chanel,” said Bruno Pavlovsky, president of Chanel Fashion regarding the brand’s decision on staying out of e-commerce

Another reason for Chanel’s in-store exclusivity is related to its client base. The majority of its customers are society’s elites who do not want the brand to be accessible to everyone; after all, Chanel’s celebrity ambassadors include only the top of the top, such as Kristen Stewart and Jennie Kim. The idea of brand exclusivity is important for luxury designers, and Chanel embodies this idea by limiting its fashion and accessories to only in-person shopping. It may seem a little arrogant for a brand to limit customers from purchasing rather than appealing to consumers, but Chanel’s strategy is working: the brand stands unmoving at the top of the pyramid of luxury brands, and its sales show that perhaps it doesn’t need to delve into e-commerce to generate astonishing sales. 

However, this exclusivity has frustrated many customers who wish to dip their toes into luxury fashion. Over the last few years, Chanel has increased its prices more times than ever, with a small Classic Handbag currently costing $8,200. It seems outrageous for a bag to cost this much money, but perhaps what’s more outrageous is that these bags are rare and it is near impossible to walk into a boutique and walk out with one. This begs the question: when is brand exclusivity for luxury fashion too much? 

Chanel’s stubbornness on its digital strategy shows a focus on in-store experience rather than generating revenue from online sales, but it also reveals the dangers of exclusivity that could damage the brand’s image. Chanel will most likely stay out of e-commerce for another while, so only time will tell whether the current trend will continue.