SWOT Analysis of Chanel 

SWOT Analysis of Chanel. Chanel is a fashion French luxury brand. Pierre Wertheimer and Coco Chanel laid the foundation of the luxury fashion brand in 1910. The headquarter of the company is at 5 Barlow Place London, UK.

Some of the main products and services of Chanel are as follows;

  • Perfume
  • Jewellery
  • Accessories
  • Ready-to-wear
  • Haute-Couture
  • Wine
  • Watches
  • Makeup and skincare
  • Colognes

Key statistical facts and figures about Chanel are as follows;

  • The annual revenue of Chanel in 2022 was 17.2 billion US dollars
  • Out of which, the operating profit of the fashion brand was 5,776 million US dollars
  • Approximately 28500 employees are working for the company to manage its worldwide operations

Some of the top competitors of Chanel are as follows;

  • Harry Winston Inc
  • Hugo
  • Christian Dior
  • Zara
  • Louis Vuitton
  • Prada
  • Armani
  • Burberry
  • Gucci
  • Michael Kors
  • L’Oreal
  • Hermes
  • Ralph Lauren

Today, we’ll discuss the swot analysis of Chanel. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the leading luxury fashion brand. Here’s the swot analysis of Chanel as follows;

Strengths of Chanel 

Some of the main strengths in the swot analysis of Chanel are as follows;

Pioneer in Ready-to-Wear

Chanel pioneered and launched the trend of ready-to-wear and ready-made clothes. It is something that almost all apparel and clothing brands offer ready-made clothes, but Chanel introduced this trend in the market for all the brands to follow in their footsteps.

Large Network

Chanel has established a large network of boutiques, approximately more than 500 boutiques, and outlets in various countries across the world. It allows the company to directly connect with customers and offer them top-notch designs.

Recognized Brand

Chanel has been operating its business in the luxury fashion industry for the past more than 110 years. The company has gone through types of fashion trends and designs in history, and it has allowed the company to establish a strong position in the fashion market.

Classic Design

Chanel is a premium luxury fashion brand and the company targets rich urban customers. The focus of the brand is to launch such classic designs that don’t fade away over time. However, the company does so because it has a rich history and a large database of unique designs.

Loyal Customers

Classic designs, premium quality, and boutiques help the luxury fashion brand to establish a large network of loyal customers. Classic clothes-loving people always prefer Chanel as their first choice of shopping.

Diversified Portfolio

Chanel has established a diversified product portfolio and the company offers a wide range of products and services to its customers. They’re like in skincare, fashion, apparel, perfume, watches, wine, and a lot of other categories.

Weaknesses of Chanel 

Some of the main weaknesses in the swot analysis of Chanel are as follows;

Brand Switching

It is no doubt Chanel is the world’s leading fashion brand, and the company has established a strong database of loyal customers. But the brand switching option is still there because people can’t afford premium quality clothes throughout the year.

High Competition

The luxury fashion market has become highly competitive in recent years. There are various brands operating their business in the fashion industry, and their presence has made it very difficult for Chanel to maintain its market share.

Opportunities for Chanel 

Some of the main available opportunities in the swot analysis of Chanel are as follows;


Chanel should establish partnerships with other leading hotels, shopping malls, and stores to display its products there. It would help the company to increase brand exposure, and lead to an increment in sales.


Innovative and creative designs are the key to the success and growth of any leading fashion brand. Chanel should invest more resources in design research and development, and it would help the company increase its brand influence and market share.


Chanel should consider acquiring other small luxury fashion brands; it would help the company to increase its market share. It also helps the company to increase its skill set and expertise.


Online shopping trends have been increasing significantly for the past few years. Chanel should invest more resources in the development of its online platform, and it would help the company keep up with the latest market trends.

Threats to Chanel 

Some of the main potential threats in the swot analysis of Chanel are as follows;

Design Copying

Counterfeiting is one of the major challenges that Chanel is facing; because many new small brands copy the designs and styles of the fashion brand and launch them under the band name. It is jeopardizing the company’s brand name.

Economic Recession

The global economy is going through the recession phase, and it has declined the purchasing power of people to a great extent. People can’t keep up with premium-price shopping, because their focus is on meeting the basic needs and necessities.

Conclusion: Chanel SWOT Analysis Example Company

After an in-depth study of the swot analysis of Chanel; we have realized that Chanel is the world’s leading fashion brand. If you are learning about the business of a premium fashion brand SWOT, then you should keep in mind the abovementioned internal and external factors.

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