Due to the coronavirus epidemic, the luxury brand Chanel could lose a large number of its sales and profits in 2020. The next 12 to 18 months would be particularly difficult for the brand as a strong recovery could not compensate for the lack of international travel in countries where the group’s shops have reopened.
Like rivals, Chanel had to shut down shops all over the globe and idle production sites as the virus first emerged in China ‘s key market for the sector and then spread to the rest of the world.
Some 85 percent of the group ‘s stores have now reopened, and in a few weeks, Blondiaux said Chanel had seen sales bounce back in China-by more than 100 percent. Shoppers returned in Paris , Milan and Berlin. Consultancy Bain says the $310 billion luxury goods sector is on track this year for a sales drop of up to 35 per cent. Chanel, which also aims to make a profit this year, is reducing ads and promotions by more than a quarter, cutting out production and canceling or changing certain activities such as this year’s fashion shows, including streaming them online.
