Chanel’s Digital strategy

In the current business environment it is vital for luxury brands to connect with Gen Z, the younger generation which is perceived to be the most pragmatic and independent type of consumer (WGSN, 2016).  Social media becomes the best way to communicate with this group of consumers, as the tech-innate generation is looking for being part of the conversation with brands. The one luxury brand that really impresses me in terms of their approach to connecting with Gen Z is Chanel. I came across an article on Business of Fashion about Chanel’s Gen Z strategy while doing the research for my assignment.  With over 25 million Instagram following and loyal fans all over the world, Chanel is the most successful luxury fashion brand on social media. What I found interesting is their approach to celebrity endorsement. To establish better connection with Gen Z, Chanel are shifting their approach to selection for their campaigns towards younger generation of celebrities and digital influencers. This allows them to remain relevant for the younger generation.

At the same time, while having strong online presence, Chanel chooses limited distribution approach, only making beauty and eyewear available to purchase online. Although it is meant to maintain the brand’s exclusivity, I strongly disagree with this strategy. Apart from limiting profit opportunities, it diminishes omni-channel experience, which is essential for younger consumers like myself. As millennials and Gen Z consumers  are drawn towards online shopping, being unable to make a purchase can be off-putting for younger clientele. In my opinion, Chanel should find an approach to e-commerce, in order to stay ahead of the game in the luxury fashion market.

 

References:

Sherman, L. (2017). Decoding Chanel’s Gen-Z Strategy. The Business of Fashion. Available at: https://www.businessoffashion.com/articles/professional/decoding-chanels-gen-z-strategy [Accessed 12/11/ 2017].

WGSN (2016) Marketing to Generation Z. Available at: WGSN.com [Accessed: 12/11/2017]

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