The History of Chanel

Chanel S.A., commonly known as Chanel (English: /ʃəˈnel/, French: [ʃa.nɛl]), is a French fashion house founded by the late couturier Gabrielle “Coco” Chanel, recognized as one of the most established in haute couture, specializing in luxury goods(haute couture, ready-to-wear, handbags, perfumery, and cosmetics among others). She gained the name “Coco” while maintaining a career as a singer at a café in France. Chanel has always specialized in items such as simple suits, dresses, women’s pants, and costume jewelry. Coco Chanel’s vision was to replace such opulent, sexy pieces with items which conveyed casual elegance. Her designs and creations are timeless, considering that the basic silhouettes have remained consistent from generation to generation. Today, Chanel is most famous for the “little black dress” which has become a key item in most women’s closets.

The company has had many high-profile celebrities as spokesmodels, including Catherine Deneuve (1970s and 80s Chanel No. 5 spokesmodel), Carole Bouquet (1990s Chanel No. 5 spokesmodel), Vanessa Paradis (spokesmodel for Coco Perfume),Nicole Kidman (early 2000s Chanel No. 5 spokesmodel), Audrey Tautou (current Chanel No.5 spokesmodel), Keira Knightley (current spokesmodel for Coco Mademoiselle), and most famously, Marilyn Monroe (1950s Chanel No. 5 spokesmodel) pictured splashing herself with Chanel No. 5. The image is certainly the most famous of all Chanel advertisements, and continues to be one of the most popular advertisement photos in the history of marketing, used in countless biographies, and still selling in large quantities as a poster and art piece using Marilyn Monroe as the model. Marilyn Monroe brought this perfume to fame.

According to Forbes, the privately held House of Chanel is jointly owned by the French Jewish Billionaires Alain Wertheimer and Gerard Wertheimer who are the great-grandsons of the early (1924) Chanel partner Pierre Wertheimer.

Gabrielle “Coco” Chanel was born as Gabrielle Bonheur Chanel in 1883. She established new designs and revolutionized the fashion industry by going “back to basics”, incorporating elegance, class, and originality. Under her tight reign from 1909–1971, Coco Chanel held the title as ‘Chief Designer’ until her death on January 10, 1971.

1909, Gabrielle Chanel opened a shop on the ground floor of Étienne Balsan’s apartment in Paris—the beginnings of what would later become one of the greatest fashion empires in the world. The Balsan home was a meeting place of the hunting elite of France and the gentlemen brought their fashionable mistresses along, giving Coco the opportunity to sell the women decorated hats. During this time, Coco Chanel struck up a relationship with Arthur ‘Boy’ Capel, a member of the Balsan men’s group.

He saw a businesswoman in Coco and helped her acquire her location at 31 Rue Cambon in Paris by 1910. There was already a couture shop in the building, and so Coco was not allowed in her lease to produce couture dresses. In 1912, Coco Chanel opened her first millinery shop in Paris and in 1913, Chanel introduced women’s sportswear at her new boutique in Deauville and Biarritz, France. Chanel’s designs tended to be simple rather than opulent in look. She detested the fashions of women who came to these resort towns. World War I affected fashion. Coal was scarce and women were doing the factory jobs that men had held prior to the war; they needed warm clothing that would stand up to working conditions. Chanel fossella’s designs from this era were affected by the new idea of women’s sports. During World War I, Coco opened another larger shop on Rue Cambon in front of the Hôtel Ritz Paris. Here she sold flannel blazers, straight linen skirts, sailor tops, long jersey sweaters and skirt-jackets.With her financial situation precarious in the early years of her design career, Chanel purchased jersey primarily for its low cost. The fabric draped well and suited Chanel’s designs, which were simple, practical, and often inspired by men’s wear, especially the uniforms prevalent when World War I broke out in 1914. Her fashion became known in 1915 throughout France for its simplicity. In the years 1915 and 1917, Harper’s Bazaar mentioned that Chanel’s name was “on the list of every buyer.” Her boutique at 31 Rue Cambon previewed simple day dress-and-coat ensembles and black evening dresses in lace or jet-embroidered tulle (she also piled cushions of feathers, fur, and metallic fabrics on the sofas in the gray and amber salons).

Coco Chanel established her reputation as a meticulous fashion couturier. Following the fashion trends of the 1920s, Chanel produced beaded dresses. The suit in two or three pieces created in 1920 remains a modern fashion look. The suit was advocated as the “new uniform for afternoon and evening as far back as 1915.” 1921 saw the introduction of her first perfume Chanel No. 5. Earnest Beaux created the fragrance for Coco and she named it after her lucky number 5. The fragrance was a success. The signature scent was a result of her belief in superstitions; she was scheduled to show her collection on the fifth day of the fifth month. Coco informed Harper’s Bazaar, “simplicity is the keynote of all true elegance”, in 1923.

Chanel returned to Paris in 1953 to find the Paris fashion scene obsessed with Christian Dior and the very feminine look for which he alone is given credit, the “New Look.” Coco Chanel responded brilliantly to the challenge; she recognized that the couture market had changed and she needed to catch-up. Becoming competitive again would necessarily come at a great price; Chanel needed to be a significant presence in: haute couture, pret-a-porter, costume jewelry and fragrance. Coco swallowed her pride and re-approached Pierre for business advice and financial backing. In return, he negotiated for himself complete rights to all products bearing the brand: “Chanel.” But their re-kindled collaboration paid off handsomely as Chanel, with her unerring sense of style, once again became the single, most prestigious label in all of fashion. Importantly for the brand and starting in 1953, Coco collaborated with jeweler Robert Goossens to design a line of Chanel jewelry which exquisitely complimented her iconic fashion designs. For example, she paired her re-launched signature “Chanel Suit” (consisting of a knitted wool cardigan with a matching skirt) with long strings of black and white pearls, setting off the suit wonderfully while at the same time adding to it a degree of femininity, thus lightening a sometimes severe look.”

She also introduced the Chanel gold or metallic chain-strapped and quilted leather handbags in February 1955. The launch date for this line, 2/55, thus became the internal “appellation” for the quilted bag line. It is still known throughout the world as the “2/55” bag and it, just like the “Chanel Suit” has never really ever fallen out of fashion. Throughout the fifties, her taste continued its unerring path to success, even as she turned to new areas of conquest. Her first venture into men’s fragrance became yet another enduring success, Chanel’s eau de toilette for men, Pour Monsieur (which has also been marketed under the name: “A Gentleman’s Cologne”) became, endured and remains even today the number one selling men’s fragrance. Chanel and her spring collection received the Fashion Oscar at the 1957 Fashion Awards in Dallas. Pierre Wertheimer bought Bader’s 20% share of the perfume business, giving his family 90%. Pierre’s son Jacques Wertheimer took his father’s place in 1965. Coco’s attorney Chambrun called the now-gone-relationship as “one based on a businessman’s passion, despite her misplaced feelings of exploitation.” He told Forbes, “Pierre returned to Paris full of pride and excitement [after one of his horses won the 1956 English Derby]. He rushed to Coco, expecting congratulations and praise. But she refused to kiss him. She resented him, you see, all her life.”

Gabrielle “Coco” Chanel died on January 10, 1971 at the age of 87. She was still “designing, still working” at the time of her death. For example, she designed the uniforms for Olympic Airways flight attendants (1966–1969), followed by Pierre Cardin. Olympic Airways was then one of the most luxurious air carriers, owned by the Greek shipping-magnate Aristotle Onassis. After her death, leadership of the company was handed down to Yvonne Dudel, Jean Cazaubon and Philippe Guibourge. After a period of time, Jacques Wertheimer bought the entire House of Chanel. Critics stated that during his leadership, he never paid much attention to the company, as he was more interested in horse breeding. In 1974, the House of Chanel launched Cristalle eau de toilette, which was designed when Coco Chanel was alive. 1978 saw the launch of the first non-couture, prêt-à-porter line and worldwide distribution of accessories.

In 1981, Chanel launched a new eau de toilette for men, Antaeus. In 1983, Karl Lagerfeld took over as chief designer for Chanel. He changed Chanel’s fashion lines from the old lines to shorter cuts and eye capturing designs. During the 1980s, more than 40 Chanel boutiques were opened up worldwide. By the end of the 1980s, these boutiques sold goods ranging from US$200-per-ounce perfume, US$225 ballerina slippers to US$11,000 dresses and US$2,000 leather handbags. Rights to Chanel cosmetics and fragrances were held by Chanel only and not shared with other beauty producers and distributors. As Lagerfeld took charge as chief designer, other designers and marketers for Chanel worked on keeping the classic Chanel look to maintain the Chanel legend. Chanel marketer Jean Hoehn explained, “We introduce a new fragrance every 10 years, not every three minutes like many competitors. We don’t confuse the consumer. With Chanel, people know what to expect. And they keep coming back to us, at all ages, as they enter and leave the market.” The launch of a new fragrance in honor of the late Coco Chanel, Coco, in 1984 maintained success in the perfumery business with Chanel. In 1986, the House of Chanel struck a deal with watchmakers and in 1987, the first Chanel watch made its debut. By the end of the decade, Alain moved the offices to New York City.

The company became a global leader in fragrance making and marketing in the 1990s. Heavy marketing investment increased revenue. The success of the Maison de Chanel brought the Wertheimer family fortune to $5 billion USD. Product lines such as watches (retailing for as much as $7,000 USD), shoes, high-end clothes, cosmetics, and accessories were expanded. Sales were hurt by the recession of the early 1990s, but Chanel recovered by the mid-1990s with further boutique expansion. 1990 saw the launch of ĹŹ.

In 1996, Chanel bought gunmaker Holland & Holland. It attempted to revamp Holland & Holland, but did not succeed. 1996 also greeted the launch of Allure fragrance and due to its immense popularity, a men’s version, Allure Homme was launched in 1998. Better success came with the purchase of Eres (a swimwear label). The House of Chanel launched its first skin care line, PRÉCISION in 1999. That same year, Chanel launched a new travel collection, and under a license contract with Luxottica, introduced a line of sunglasses and eyeglass frames.

While Alain Wertheimer remained chairman of Chanel, CEO and President Françoise Montenay was to bring Chanel into the 21st century. 2000 saw the launch of the first unisex watch by Chanel, the J12. In 2001, Bell & Ross was purchased (a watchmaker). The same year, Chanel boutiques offering only selections of accessories were opened in the United States.

2002 saw the launch of Chance fragrance, with a scent of surprise and glamour. The House of Chanel also founded the Paraffection company that gathered the five Ateliers d’Art: Desrues for ornamentation, Lemarié for feathers and camellias, Lesage for embroidery, Massaro for shoemaking, and Michel for millinery. A prêt-à-porter collection leveraging their know-how was designed by Karl Lagerfeld. It is now traditionally presented each December. In July 2002, a jewelry and watch flagship store was opened on the upscale Madison Avenue. Within months, a 1,000^sqft shoes and handbag boutique was opened next door to the jewelry and watches flagship. Also in 2002, a rumor suggesting that Chanel was considering a merger with the luxury goods Parisian fashion company Hermès circulated. Although such a merger would have produced one of the largest fashion companies in the world, and rival the likes of Moët-Hennessy • Louis Vuitton, it was never consummated. Chanel continued to expand in the United States and by December 2002, it operated 25 U.S. boutiques. Chanel stated it would like to open more boutiques in more U.S. cities such as Atlanta and Seattle.

In order to please the younger followers, Chanel introduced Coco Mademoiselle and an “In-Between Wear” in 2003. That same year saw such an immense popularity of Chanel haute couture that the company founded a second shop on Rue Cambon. Desiring a presence in the Asian market, the House of Chanel opened a new 2,400 square feet (220 m²) boutique in Hong Kong and paid nearly $50 million USD for a building in Ginza, Tokyo.

The History of Louis Vuitton

The Louis Vuitton label was founded by Vuitton in 1854 on Rue Neuve des Capucines in Paris. In 1858, Vuitton introduced his flat-bottom trunks with trianon canvas, making them lightweight and airtight. Before the introduction of Vuitton’s trunks, rounded-top trunks were used, generally to promote water run off, and thus could not be stacked. It was Vuitton’s gray Trianon canvas flat trunk that allowed the ability to stack with ease for voyages. Becoming successful and prestigious, many other luggagemakers began to imitate LV’s style and design.

In 1867, the company participated in the universal exhibition in Paris. To protect against the duplication of his look, he changed the Trianon design to a beige and brown stripes design in 1876. By 1885, the company opened its first store in London, England on Oxford Street. Soon thereafter, due to the continuing imitation of his look, in 1888, the Damier Canvas pattern was created by Louis Vuitton, bearing a logo that reads “marque L. Vuitton déposée“, which translates into “L. Vuitton registered trademark”. In 1892, Louis Vuitton died, and the company’s management passed to his son.

After the death of his father, Georges Vuitton began a campaign to build the company into a worldwide corporation, exhibiting the company’s products at the Chicago World’s Fair in 1893. In 1896, the company launched the signature Monogram Canvas and made the worldwide patents on it. Its graphic symbols, including quatrefoils and flowers (as well as the LV monogram), were based on the trend of using Japanese and Oriental designs in the late Victorian era. The patents later proved to be successful in stopping counterfeiting. In this same year, Georges traveled to the United States, where he toured various cities (such as New York, Philadelphia, and Chicago), selling Vuitton products during the visit. In 1901, the Louis Vuitton Company introduced the Steamer Bag, a smaller piece of luggage designed to be kept inside Vuitton luggage trunks.

By 1913, the Louis Vuitton Building opened on the Champs-Elysees. It was the largest travel-goods store in the world at the time. Stores also opened in New York, Bombay, Washington, London, Alexandria, and Buenos Aires as World War I began. Afterwards, in 1930, the Keepall bag was introduced. During 1932, LV introduced the Noé bag. This bag was originally made for champagne vintners to transport bottles. Soon thereafter, the Louis Vuitton Speedy bag was introduced (both are still manufactured today). In 1936 Georges Vuitton died, and his son, Gaston-Louis Vuitton, assumed control of the company.

During the World War II, Louis Vuitton collaborated with the Nazis during the German occupation of France. The French book Louis Vuitton, A French Saga, authored by French journalist Stephanie Bonvicini and published by Paris-based Editions Fayard tells how members of the Vuitton family actively aided the puppet government led by Marshal Philippe Pétain and increased their wealth from their business affairs with the Germans. The family set up a factory dedicated to producing artifacts glorifying Pétain, including more than 2,500 busts. Petain’s Vichy regime was responsible for the deportation of French Jews to German concentration camps.

Caroline Babulle, a spokeswoman for the publisher, Fayard, said: “They have not contested anything in the book, but they are trying to bury it by pretending it doesn’t exist.” Responding to the book’s release in 2004, a spokesman for LVMH said: “This is ancient history. The book covers a period when it was family-run and long before it became part of LVMH. We are diverse, tolerant and all the things a modern company should be.” An LVMH spokesman told the satirical magazine Le Canard Enchainé “We don’t deny the facts, but regrettably the author has exaggerated the Vichy episode,”. That publication was the only French periodical to mention the book.

The Louis Vuitton brand and the famous LV monogram are among the world’s most valuable brands. According to a Millward Brown 2010 study, Louis Vuitton is the world’s 29th most valuable brand, right after Wells Fargo and before Gillette. The brand itself is estimated to be worth USD 19.781 billion. For the sixth consecutive year, Louis Vuitton still at number one of ten most powerfull brand published by the Millward Brown Optimor’s 2011 BrandZ study with value of $24.3 billion. It was more than double value from the second rank.

Louis Vuitton is one of the most counterfeited brands in the fashion world due to its image as a status symbol. Ironically, the signature Monogram Canvas was created to prevent counterfeiting. In 2004, Louis Vuitton fakes accounted for 18% of counterfeit accessories seized in the European Union.

The company takes counterfeiting seriously, and employs a team of lawyers and special investigation agencies, actively pursuing offenders through the courts worldwide, and allocating about half of its budget of communications to counteract counterfeiting of its goods. LVMH (Vuitton’s parent company) further confirmed this by stating that “some 60 people at various levels of responsibility working full time on anti-counterfeiting in collaboration with a wide network of outside investigators and a team of lawyers.” In a further effort, the company closely controls the distribution of its products. Until the 1980s, Vuitton products were widely sold in department stores (e.g. Neiman Marcus and Saks Fifth Avenue). Today, Vuitton products are primarily available at authentic Louis Vuitton boutiques, with a small number of exceptions. These boutiques are commonly found in upscale shopping districts or inside luxury department stores. The boutiques within department stores operate independently from the department and have their own LV managers and employees. LV has recently launched an online store, through its main website, as an authorized channel to market its products.