Optimization Analysis of Chanel's Marketing Strategy in China

Research Article
Open access

Optimization Analysis of Chanel's Marketing Strategy in China

Ziqing Qu 1*
  • 1 Accounting Major, School of Accounting, Capital University of Economics and Business, Beijing, China 100070    
  • *corresponding author 32023040036@cueb.edu.cn
Published on 7 January 2025 | https://doi.org/10.54254/2754-1169/2025.19739
AEMPS Vol.160
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-889-5
ISBN (Online): 978-1-83558-890-1

Abstract

The background of this study is that Chinese consumers' luxury consumption concept is changing, and digital marketing is increasingly important. The research topic focuses on the marketing strategy of Chanel women's wear in the Chinese market, aiming to put forward targeted suggestions through in-depth analysis. The research method is a combination of literature review and case study. The results show that Chanel needs to focus on refined marketing of the characteristics of the Chinese market, consumer behavior analysis and strategy adjustment under the background of the epidemic, as well as digital transformation and marketing strategy innovation. The study concluded that Chanel should balance the development of online and offline channels, deeply explore the brand story, flexibly respond to market changes, and pay attention to the concept of sustainable development .The significance and impact of this study lie in not only assisting Chanel in achieving fresh breakthroughs and development within the Chinese market, but also in offering valuable insights for other luxury brands in terms of marketing strategy and brand establishment in China.

Keywords:

Chinese market, luxury consumption concept, Chanel women's wear, marketing strategy, digital transformation

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1. Introduction

Chanel, a high-end fashion brand originating from France, has enjoyed a high reputation in the global luxury market since its birth with its unique design concept and excellent quality. Its women's series has won the favor of global consumers with its classic, elegant and fashionable design style. Chanel women's wear not only represents fashion and trend, but also symbolizes a life attitude and taste. The "simple but not simple" design concept advocated by the brand founder Gabrielle Chanel is still the core spirit of Chanel women's wear.

However, although Chanel women's wear has a high degree of brand recognition and reputation around the world, in the Chinese market, its user loyalty and product re-purchase rate are facing certain challenges. As one of the world's largest luxury consumer markets, China's demand for luxury goods is growing day by day, and the market competition is becoming increasingly fierce.

This research is carried out under such background. Chinese consumers' consumption concept of luxury goods is undergoing profound changes, they pay more attention to product quality, design and brand cultural connotation, and the impact of the economic crisis in the post-epidemic era also drives the luxury brand marketing track to go online. Therefore, for high-end fashion brands such as Chanel, how to accurately position in the Chinese market and meet the diversified needs of consumers has become the key to enhance user loyalty and product re-purchase rate.

The significance of this study is that through in-depth discussion of Chanel women's marketing strategy and its influence in the Chinese market, it can provide targeted suggestions for brands to improve their marketing strategies and help brands achieve sustainable development in the Chinese market. At the same time, this study will also provide useful reference for other luxury brands in the Chinese market marketing strategy and brand building.

The research topic focuses on the marketing strategy choice of Chanel women's wear under the Chinese consumer market. In order to reveal its internal mechanism, this study will be analyzed from the perspectives of brand positioning, product characteristics, consumer behavior, market competition environment and after-sales service. The research method will be a comprehensive use of literature review and case study, through the collection and analysis of relevant literature materials, as well as the actual sales cases of Chanel women's wear in the Chinese market in-depth analysis, in order to draw scientific and accurate conclusions.

The research goal is to reveal the current marketing strategy implementation of Chanel women's wear in the Chinese market through a comprehensive and in-depth analysis, provide feasible marketing strategy planning for the brand, and help the brand achieve new breakthroughs and development in the Chinese market.

2. Analysis of Chanel's Market Positioning

Chanel's target consumer groups are mainly high-income and high-taste consumers, who pursue quality life and pay attention to personal image and taste expression. These consumers usually have certain social status and influence and are willing to pay high prices for high-quality products. Through its unique design, excellent quality and exquisite craftsmanship, Chanel satisfies these consumers' pursuit of high quality life.

Chanel has positioned itself as an elegant, noble and unique brand image. From the beginning of the brand, Chanel focused on creating its unique brand culture and design style. Its iconic double C logo, classic perfume collection and haute couture clothing have all become the symbol of the Chanel brand. Chanel has consolidated its elegant, noble and unique brand image by constantly launching new products and holding fashion events [1].

Chanel's products are positioned in the high-end market, focusing on the quality and uniqueness of products. Its product line covers perfume, cosmetics, skin care, clothing, accessories and other fields, and each product has been carefully designed and strict quality control. Chanel's products not only have excellent quality, but also focus on product innovation and personalized design to meet consumers' demand for high quality and personalized.

Chanel's price positioning is high, mainly for the high-end market. Its products are much more expensive than regular brands, but consumers are still willing to pay for them. This is mainly because Chanel's products have excellent quality and unique brand value, which can meet consumers' pursuit of high-quality life. At the same time, Chanel has also improved the added value and uniqueness of its products through limited edition products and customized services, further consolidating its position in the high-end market [2]. In short, differentiated positioning from the perspective of new retail plays an increasingly prominent role in Chanel's brand building and market influence promotion [3].

3. Analysis on the Effectiveness of Chanel Marketing Strategy

3.1. Overview of Chanel's Marketing Strategy

In the increasingly fierce global competition in the fashion industry, Chanel as a leader in luxury brands, the effectiveness and innovation of its marketing strategy has always been the focus of attention in the industry. Through the in-depth analysis of Chanel's brand culture, market positioning, marketing channels and customer feedback, this study can further explain the success of its marketing strategy, and discuss how to continuously optimize and innovate in the ever-changing market environment.

Chanel brand has a profound cultural heritage, and its founder Gabrielle Chanel's life experience and unique aesthetic have infused the brand with an unreplicable soul. Chanel is not only a fashion brand, but also a life attitude and cultural symbol. This deep cultural heritage makes Chanel in the marketing strategy can pay more attention to the brand storytelling and inheritance. Through the carefully planned fashion promotional video, Chanel successfully combines the brand concept with the product characteristics, and conveys the core values and cultural heritage of the brand to consumers. These promotional videos not only show the fashion charm of Chanel products, but also create a unique brand atmosphere through the ingenious combination of models, spokespersons, scenes and storylines, so that consumers have a strong sense of identity and belonging to the brand.

3.2. An Analysis of Chanel's Marketing Strategy in China

In the Chinese market, Chanel's marketing strategy also performed well. With the rise of social media, Chanel actively uses Sina Weibo and other platforms to establish a close interactive relationship with consumers. Through the release of fashion information, new product trailers, behind-the-scenes clips and other content, Chanel not only enhanced the brand's awareness and influence, but also successfully attracted the attention of a large number of potential customers. In addition, Chanel has further narrowed the distance with consumers by holding offline activities and opening specialty stores. These activities not only provide consumers with the opportunity to experience brand products in person, but also enhance consumers' perception and recognition of the brand through the creation of on-site atmosphere.

However, with the changing market environment and consumer needs, Chanel also faces some challenges. Especially in the Chinese market, consumers of different ages have different demands and preferences for brands. Young consumers pay more attention to the fashion and personalization of brands, while consumers over 45 pay more attention to the practicality and cost performance of products. For these consumers, they may pay more attention to the functionality and comfort of products, while the pursuit of brand culture and spiritual experience is relatively low. Therefore, Chanel needs to further adjust and optimize its marketing strategy in the Chinese market to better meet the needs of different consumer groups [4].

3.3. Chanel in China Marketing Strategy Optimization Suggestions

First, company is advised to launch more targeted product lines and marketing campaigns. For example, targeting young consumers, more fashionable and personalized products can be launched, and precision marketing can be carried out through channels such as social media. For consumers over 45 years old, products that pay more attention to practicality and cost performance can be launched, and promoted through offline activities, specialty stores and other channels [5]. Secondly, the integration with local culture should be strengthened. In the Chinese market, consumers have a strong sense of identity with local culture. Therefore, Chanel can integrate more Chinese elements in product design, marketing activities and other aspects to enhance the brand's cultural identity and sense of belonging in the Chinese market [6].

In addition, with the deepening of digital marketing, Chanel also needs to constantly innovate marketing strategies to adapt to the new market environment. For example, big data, artificial intelligence and other technological means can be used to make accurate portraits and personalized recommendations for consumers. At the same time, it can also establish a closer connection with consumers through new marketing methods such as live delivery and short videos. These innovative marketing strategies cannot only enhance the brand awareness and influence, but also enhance consumers' loyalty and stickiness to the brand [7].

In short, the effectiveness analysis of Chanel's marketing strategy is a dynamic and circular process. Through in-depth understanding of the target market, clear consumer needs and preferences, the development of precise marketing strategies and continuous optimization and innovation, Chanel is expected to maintain a leading position in the fierce market competition and achieve long-term development and value maximization of the brand. In the future, with the changing market environment and the increasing diversification of consumer needs, Chanel will continue to explore more innovative marketing strategies to build a closer relationship between brands and consumers and promote the continuous prosperity and development of the brand.

4. Chanel Marketing Strategy Planning

4.1. Refined Marketing Based on the Characteristics of the Chinese Market

In view of the Chinese market, the marketing strategy of Chanel women's perfume should pay more attention to localization and refinement. First of all, it is necessary to deeply understand the aesthetic preferences, purchasing habits and social media usage habits of Chinese consumers, based on which targeted marketing strategies should be formulated. For example, through big data analysis, high-potential consumer groups are identified and promotional content is tailored for them. At the same time, it strengthened cooperation with local key opinion leaders (KOLS) and leveraged their influence on social media to enhance brand exposure and trust.

In addition, considering the diversified characteristics of the Chinese market, Chanel can launch limited edition or customized edition perfume to meet the personalized needs of different consumers. In terms of product design, Chinese elements, such as traditional patterns and colors, can also be incorporated to enhance cultural resonance with Chinese consumers [8].

4.2. Consumer Behavior Analysis and Strategy Adjustment under the Background of Epidemic

During the epidemic, consumers' purchasing behavior and consumer psychology have changed significantly. Chanel should pay close attention to these changes and adjust its marketing strategy accordingly. For example, online shopping and virtual experiences have become mainstream trends as the epidemic has limited people's travel and social activities. Therefore, Chanel should increase investment in online channels, optimize the experience of e-commerce platforms, and develop virtual tasting functions, so that consumers can feel the charm of perfume at home.

In addition, in response to consumers' concerns about health and safety during the pandemic, Chanel can emphasize the safety and environmental protection of its products as a marketing highlight. Meanwhile, through social media and short video platforms, brand stories and production techniques are shared to enhance consumers' brand identity and loyalty [9].

4.3. Digital Transformation and Marketing Strategy Innovation

First of all, the company should establish a sound digital marketing system, including social media marketing, search engine optimization, big data analysis, in order to achieve accurate reach and personalized recommendation to target consumers.

Secondly, the use of augmented reality (AR), virtual reality (VR) and other advanced technologies, to create an immersive shopping experience. For example, through AR technology, consumers can try on Chanel clothes and wear Chanel accessories in a virtual environment, thus stimulating their purchase desire.

Finally, brands should strengthen interaction and communication with consumers. Collect feedback and suggestions from consumers through social media platforms and online communities, and adjust marketing strategies in time. At the same time, online activities and live broadcasts are held to increase interaction opportunities with consumers and improve brand activity and user engagement [10].

5. Conclusion

This study finds that Chinese consumers' luxury consumption concept is changing, and they pay more attention to product quality, design and cultural connotation. At the same time, the importance of digital marketing in the luxury industry has become increasingly prominent, and online and offline channels need to develop in a balanced way. In addition, in-depth exploration of brand stories, flexible response to market changes, and focus on sustainable development and environmental protection concepts are also key to enhance brand appeal.

This study provides suggestions on targeted marketing strategies for the brand by deeply exploring the current situation and challenges of Chanel women's wear in the Chinese market. These suggestions not only help Chanel to achieve new breakthroughs and development in the Chinese market, but also provide useful reference for other luxury brands in the Chinese market marketing strategy and brand building.

This study has shortcomings in the pertinence of case analysis and strategy recommendations. There is a lack of specific data support to enhance the persuasive point of view, and the case analysis is not in-depth enough to provide a sufficient empirical basis for marketing strategy suggestions. At the same time, in view of the specific situation of Chanel women's wear in the Chinese market, the targeted strategy and suggestions need to be strengthened.

In order to further improve the research, more data and empirical results can be introduced in the future to support the views and enhance credibility. At the same time, deepen the case analysis, select specific marketing cases for detailed analysis, to provide more specific reference for marketing strategy suggestions. In addition, according to the different consumer groups and market needs of Chanel women's wear in the Chinese market, more specific and targeted marketing strategies and product development suggestions are put forward. Through these improvements, Chanel can better guide the development of the Chinese market, enhance its user loyalty and product repurchase rate.


References

[1]. Xu, F. (2017) Olfactory Marketing of luxury Brands: A Case study based on Chanel Brand. Modernization, 16, 53-56.

[2]. Zhang, J. (2021) Luxury Brand Marketing Strategy -- Taking Chanel as an Example. Science and Technology Economic Market, 3, 73-74.

[3]. Dong, Y. (2020) Under the Background of New Retail C Brand Marketing Strategy Research. Shanghai International Studies University.

[4]. Zhang, L. (2016) Research on Chanel's Network Marketing System in China. Lanzhou University of Technology.

[5]. Sui, Y.K. (2021) Wen Gen Senior Design under the Perspective of Chanel Hand Workshop Study. Nanjing Art Institute.

[6]. Lu, X.Y. (2015) Research on Visual Consumption Culture of Chanel Brand. Lanzhou University.

[7]. Dallabona, A. (2024). Luxury Fashion Marketing and Branding: A Strategic Approach (1 st Ed.). Routledge.

[8]. Xia, X.H. (2023) Chanel Perfume in China Marketing Strategy Research. Northeast University of Finance and Economics.

[9]. Xiao, C. (2023) The Analysis of CHANEL's Marketing Strategy Affects Consumer Behavior in the Pandemic Situation. Department of Economics, King's Business School, King's College London, Cardiff Business School, Business School. Proceedings of the 2nd International Conference on Business and Policy Studies (part12).University of Sussex, 10.

[10]. Liu, Y. (2023) Analysis on Chanel Group Digital Marketing Strategies. Wuhan Zhicheng Times Cultural Development Co., Ltd. Proceedings of 2nd International Conference on Economic Administration and Information Systems (EAIS 2023). The University of Melbourne, 5.


Cite this article

Qu,Z. (2025). Optimization Analysis of Chanel's Marketing Strategy in China. Advances in Economics, Management and Political Sciences,160,1-6.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 4th International Conference on Business and Policy Studies

ISBN:978-1-83558-889-5(Print) / 978-1-83558-890-1(Online)
Editor:Canh Thien Dang
Conference website: https://2025.confbps.org/
Conference date: 20 February 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.160
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. Xu, F. (2017) Olfactory Marketing of luxury Brands: A Case study based on Chanel Brand. Modernization, 16, 53-56.

[2]. Zhang, J. (2021) Luxury Brand Marketing Strategy -- Taking Chanel as an Example. Science and Technology Economic Market, 3, 73-74.

[3]. Dong, Y. (2020) Under the Background of New Retail C Brand Marketing Strategy Research. Shanghai International Studies University.

[4]. Zhang, L. (2016) Research on Chanel's Network Marketing System in China. Lanzhou University of Technology.

[5]. Sui, Y.K. (2021) Wen Gen Senior Design under the Perspective of Chanel Hand Workshop Study. Nanjing Art Institute.

[6]. Lu, X.Y. (2015) Research on Visual Consumption Culture of Chanel Brand. Lanzhou University.

[7]. Dallabona, A. (2024). Luxury Fashion Marketing and Branding: A Strategic Approach (1 st Ed.). Routledge.

[8]. Xia, X.H. (2023) Chanel Perfume in China Marketing Strategy Research. Northeast University of Finance and Economics.

[9]. Xiao, C. (2023) The Analysis of CHANEL's Marketing Strategy Affects Consumer Behavior in the Pandemic Situation. Department of Economics, King's Business School, King's College London, Cardiff Business School, Business School. Proceedings of the 2nd International Conference on Business and Policy Studies (part12).University of Sussex, 10.

[10]. Liu, Y. (2023) Analysis on Chanel Group Digital Marketing Strategies. Wuhan Zhicheng Times Cultural Development Co., Ltd. Proceedings of 2nd International Conference on Economic Administration and Information Systems (EAIS 2023). The University of Melbourne, 5.