Mimosa Spencer
PARIS (Reuters) – Chanel plans to invest in opening more stores in mainland China even as Chinese shoppers shift spending to other markets as travel resumes, the French brand said on Tuesday.
“The ability to scale is really important,” said Lina Nair, chief executive of the private label, known for its tweed suits, quilted bags and No. 5 perfume.
During a recent trip to China, she said she noticed that younger shoppers were interested in buying luxury goods as a long-term financial investment.
First-quarter sales reports from luxury brands showed mixed results in mainland China, providing little confidence that Chinese demand for high-end fashion is recovering quickly.
That has dimmed the outlook for an industry that had high hopes that the key market would provide a boost as post-pandemic profligacy subsides in the US and Europe.
“China is still a place where we are, I would say, under-exposed,” said Chanel CFO Philippe Blondio, citing the brand’s 18 fashion boutiques compared with rival brands that have 40 to 50 stores.