Revolutionizing fashion across the globe with innovative designs that express style and elegance, Dior and Chanel are two of the biggest luxury fashion houses in the world with a rich historical heritage. Both these Parisian brands enjoy a cult following. With that said, both brands enjoy some similarities and many dissimilarities. Here is a comparison between these two fashion giants, beginning from their origins.
What we know as The House of Chanel now, originated in the year 1909 when Gabrielle (Coco) Chanel opened a millinery shop in Paris at the ground floor flat of textile businessman and socialite Etienne Balsan. It was a year later, in 1910, she opened her first independent millinery shop, Chanel Modes, with financial help from Boy Capel, her boyfriend at the time. Before she ventured into fashion, she worked as a singer in Paris, her stage name being Coco. She was a firm advocate of abolishing the restrictions of the then-prevalent culture imposed on women. This inspired her to style and designs that were heavily inspired by men’s clothing – cardigan suits and jersey dresses.
By the year 1915, garments made by La Maison Chanel were on every buyer’s list in Europe. Over the next few years, Coco Chanel set fashion trends and created clothing from colors that were traditionally considered male to denote feminine strength. Chanel’s Perfume No. 5 was introduced in the year 1922. Coco Chanel successfully continued to design and sell clothes for more than two decades. However, problems between Coco Chanel and her business partners and the problems in the wake of World War II forced her to stop.
Chanel presented Perfume No. 5 to the market in 1922
She re-emerged on the fashion scene in the year 1954, at a time when Christian Dior’s new looks and styles were gaining popularity within fashion circles. She resurrected the House of Chanel, collaborated with jeweler Robert Goossens and also presented leather handbags by the year 1955. She brought success to the House of Chanel through her business expertise. After her passing in 1971, Alain Wertheimer assumed controlling interest in the House of Chanel in the year 1974. Through the years, Chanel has grown and expanded its footprint and its product repertoire. The current Creative Director at The House of Chanel is Virginie Viard and the Global Chief Executive Officer is Leena Nair.
Dior
Established in the year 1946 as The House of Dior in Paris, the current Dior Corporation celebrates the year 1947 as the opening year as the founder, Christian Dior, made a first strong impression during his first show. His spring-summer collection of 1947 was originally named ‘Corolle & Huit’ which came to be widely popularized as ‘New Look’ after Harper Bazaar’s editor-in-chief, Carmel Snow, commented – “It’s such a new look.”
Christian Dior’s “New Look” Fashions | Movietone Moment |
The ‘New Look’ quickly became popular after the austerity of World War II bringing back femininity and colour. Within a couple of years, after he was established, Christian Dior began expanding internationally by opening a Christian Dior boutique in New York City. By the mid-1950s, the brand had grown into a well-respected fashion empire. Christion Dior launched highly successful fashion lines between 1954 and 1957. By the time Christian Dior breathed his last in the year 1957, his name had become synonymous with taste and luxury.
Post Christian Dior’s demise, the fashion house underwent a couple of changes and hit a few obstacles and challenges before businessman Bernard Arnault assumed the chairmanship and became CEO and Managing Director in the year 1985. Under his leadership, the brand underwent drastic changes and all for the better. Since then, the brand has steadily grown and expanded and still remains one of the best luxury fashion houses around the world.
Even though both these fashion houses have the same heritage expression, their paths to success have vastly differed. Chanel focused on simple, logical, and comfortable designs drawing inspiration from men’s clothing details to make females feel empowered. Dior’s designs are a complete opposite highlighting femininity and using materials and patterns such as tulle and flowers. However, designs aside, there are a few parameters on which these fashion giants can be compared.
Maintaining Exclusivity
Chanel maintains its reputation for exclusivity zealously. The brand has also begun to place limits on the number of Chanel products a customer can purchase per year to fan the desire to own its products. The classic example of this is that a consumer can only purchase one classic Chanel bag per year. This also has the dual purpose of limiting the resale market for Chanel products. Dior, on the other hand, is easier to purchase as there are no such limits placed on its products. In this day of technology and booming e-commerce, Chanel takes its exclusivity clause a notch higher by not selling online. Dior products, however, are easily available through online channels.
Product Cost
Similarly at one time, Chanel increased its product prices adding another layer to its image as a luxury and exclusive brand. Dior’s price rise has been very less comparatively.
Resale Value
The resale value of any brand is directly proportional to its image of exclusivity. Hence, it is no wonder that Chanel’s resale value is much higher than Dior’s due to its very limited product availability.
Aesthetics
Both brands are well-loved by a very loyal following and their designs are timeless. However, Chanel’s designs are focused on simplicity and functionality whereas Dior’s designs flaunt femininity and elegance.
Product Quality
Dior’s products are mostly made in Italy and Spain while Chanel’s are manufactured in Italy and France. However, both brands are highly conscious of their product quality and use the finest available leather as well as skillful artisans for their craftsmanship.
Social Media Presence and Influence
Both these brands are well-represented on social media and are followed by millions. Due to its exclusivity and product availability limit, Chanel enjoys more followers than Dior.
Conclusion
Chanel and Dior are two luxury fashion brands that have global appeal. They are business rivals for sure, but each has a different focus. The haunting question is which one is better. That is a difficult choice as each has its own uniqueness of product and idea. Both brands sell similar items but preference depends on individual customer’s ideology of dressing, product pricing, and to a certain extent, product availability. However, what is clear is that both these brands have significantly impacted the global fashion scenario and continue to do so.
FAQs
Who are the present Creative Director and CEO of Chanel?
The current Creative Director at The House of Chanel is Virginie Viard and the Global Chief Executive Officer is Leena Nair.
When was Dior established?
Dior was established in the year 1946.
When did Chanel present Perfume No. 5?
Chanel presented Perfume No. 5 to the market in 1922
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Raymond.
India as a diverse land has a lot of colorful trends when it comes to textiles and apparel. Of course, the collapse of all hype at the dawn of the twentieth century brought a more sensible environment and a more solid view of the fashion industry.
As far as we know, the Indian Textile industry is a significant contributor to the country’s economy. The industry is providing one of the most fundamental needs of the community and has importance; preserving ongoing development for raising the quality of life. It has established itself as a self-sufficient industry that adds value at every stage of the supply chain right from the production of raw materials to the delivery of finished goods.
Raymond Group is an Indian textile and fashion industry headquartered in Mumbai, India. Raymond was founded in 1925 by Albert Raymond. The group makes suiting material and has a 31 million meter capacity for wool and wool-blend fabrics.
Check out a lot more about Raymond, its startup story, its founders and team, business and revenue growth, the challenges faced, and a lot more relevant information.
Incorporated in 1925, the Raymond Group is a diversified organization with most of its business activities in the textile and apparel industries. It also operates in a number of other industries, including FMCG, Real Estate, Engineering, and Prophylactics, in both domestic and foreign markets.
With the support of more than a billion customers, Raymond is renowned for providing its customers with top-notch products for the previous nine decades.
The company is the owner of clothing brands including Raymond, Raymond Premium Apparel, Raymond Made to Measure, Ethnix, Park Avenue, Park Avenue Woman, ColorPlus, Kamasutra, and Parx. All of the brands are sold through “The Raymond Shop” (TRS), which has a network of more than 700 retail locations in India and abroad in more than 200 cities. The brand also has its presence in tier IV & V cities.
Woolen textiles, Cotton, Wool blends, Linen, and Denim are just a few of the luxurious shirting and suiting fabrics that Raymond has to offer.
After entering the clothing, textile, and sexual wellness segment, in 1949, Raymond Ltd. made a foray into the engineering industry. With a market share of more than 25% of worldwide steel file production capacity in 2020 and a presence in more than 55 countries, JK Files and Engineering Ltd. holds the top spot as the industry leader. It was 2019 that saw the announcement of Raymond’s entry into the real estate industry as Raymond Realty with the theme of ‘Go Beyond’. The new business would invest 250 crores (about $36 million) to create mid-range and luxury housing units on 20 acres of land in Thane, a rising suburb of Mumbai.
Raymond has also strived to do something for society. ‘Beyond business’, is Raymond’s humanitarian activities that are designed to foster inclusive growth for the socially underprivileged.
JK Trust Gram Vikas Yojana – improve the quality of life in rural areas through a Cattle Breed Improvement Programme (CBIP)
JK Bovagenix – On July 20, 2016, a groundbreaking breeding program using in-vitro fertilization to produce selected indigenous cattle breeds went into effect.
Skilled Tailoring Insititute – to train unemployed women
Raymond Tailoring Hubs for skill development – located in Mumbai, Delhi, Bihta, Jamshedpur, Jaipur, Nashik, Villupuram, Ranchi, and Bengaluru.
Singhania Schools
Raymond – Industry
As mentioned earlier, the Indian Textile industry contributes a major chunk to the country’s economy. This sector is also one of the oldest industries in the Indian economy. It is reported that the Indian textiles market is expected to be worth more than $209 billion by 2029.
Raymond – Leadership
Gautam Vijaypat Singhania is the Managing director and Chairman of the Raymond Group.
Gautam Vijaypat Singhania
Born to an industrialist family, whose parents are Vijaypat Singhania and Ashabai Singhania, Gautam Vijaypat Singhania is the Chairman and Managing Director of the Raymond Group. He attended Cathedral and John Connon Schools as well as St. Mary’s School in Mumbai. In 1986, Gautam Singhania joined the JK Group of businesses owned by the Singhania family. Later, he joined the Raymond Group, where he rose through the ranks to become chairman in September 2000, and managing director in July 1999.
Nawaz Modi Singhania, a Parsi, is the spouse of Gautam Singhania. They have a daughter called Niharika.
According to a family agreement, Gautam Singhania has been given a 27% share of the business. A few years after taking over, he turned the business around and made it become a big success.
Raymond – Mission and Vision
Raymond likes to do business with one vision, that is, “Trust, Quality, and Excellence”
Raymond – Name, Logo, and Tagline
As we all are aware, the tagline of Raymond is, “The Complete Man”
The brand name was derived from Albert Raymond and Abraham Jacob Raymond, who were members of the Board of Directors of a Jewish industrialist company during the 1920s known as E.D Sassoon and Co. Formerly it was known as ‘The Raymond Woollen Mills” and then it was changed to just ‘Raymond’.
Raymond – Startup Story
The story of the world’s largest producer of suiting fabric, Raymond goes back to the year 1925. An elderly man by the name of Wadia had the foresight to establish a modest woolen mill in the backward region of Thane, Maharashtra, spurred on by the burgeoning need for apparel for soldiers in the Indian Defense Force. However, Wadia couldn’t manage the woolen mill and it was taken over by E.D Sassoon and Co. It was them, who renamed the company, ‘The Raymond Woollen Mills’
After some years, in 1944, Lala Kailashpat Singhania took over Raymond when he saw the potential in the brand for the coming future. His family, the Singhanias moved to Farrukhabad from the little village of Singhana in Shekhawati, one of the desert towns of northeast Rajasthan, in search of better opportunities. They had their own company called JK Cotton Spinning & Weaving mills Co., wherein they produced high-quality cotton clothes using only Indian raw materials, labor, and other methods to compete against England.
Post-independence, Kailashpat took Raymond to newer heights and put up a new manufacturing unit JK Files in 1950 to manufacture indigenous engineering files. In 1958, Raymond opened its first exclusive showroom in King’s corner, Ballard Estate in Mumbai.
In 1986, Park Avenue was launched by Raymond, a collection of stylish wardrobes for men.
Raymond opened its first international showroom in Oman in 1990. After one year, the brand launched a premium condom brand called, ‘Kamasutra’. With the founding of Raymond Aviation in 1996, the group entered the aviation industry. Corporate travelers in India can use the air charter services offered by Raymond Aviation.
In order to provide customers with a variety of semi-formal and casual clothing, the luxury casual wear brand Parx was introduced in 1999. 2008 saw the introduction of ready-to-wear clothing under the Raymond brand, which is currently known as Raymond Ready to Wear.
In 2016, the company launched a kind of fabric, which the company referred to as the Smartest fabric in the World – it was known as Technosmart. In the same year, Raymond opened a new office in Dubai. With 900 outlets in 500+ Indian towns and cities as of 2018, Raymond had experienced its fastest-ever retail expansion.
To combat COVID, Raymond came up with ‘Virasafe’, a highly effective anti-viral fabric. To produce PPE suits during the outbreak, the brand converted its garment plants.
Raymond – Business model
Raymond’s business involves a number of business models because it deals with several types of business including real estate and aviation. However, it does have a B2B business model as it manufactures one of the finest cotton and pure linen fabrics.
Here’s taking a look at the various businesses by Raymond Group:
Suit Business
It is commendable that in India, the woolen suiting fabric industry is dominated by Raymond, one of the largest vertically and horizontally merged producers of worsted suiting fabric in the world, with a market share of over 60%. This business has manufacturing plants at Vapi (Gujarat), Chhindwara (Madhya Pradesh), and Jalgaon (Maharashtra) with a manufacturing capacity of 38 million meters.
Garment Business
Raymond has three wholly-owned subsidiaries – Silver Spark Apparel Ltd (Suits), EverBlue Apparel Ltd. (Jeanswear), and Celebrations Apparel Ltd. (Shirts) for its garment business. The only Indian company having the know-how to create Full Canvas Suits is Silver Spark Apparel Ltd. The company’s products such as jeans, trousers, shirts, and suits are all exported to the USA, Europe, and Japan.
Shirt Business
Raymond is also engaged in the manufacturing of shirt fabrics, which are very renowned and the finest in India. At its advanced manufacturing facility in Kolhapur (Maharashtra), the operation has a capacity of 26 million meters and manufactures bottom-weight textiles and high-end cotton and linen shirts for well-known national and international brands.
Retail Business
Raymond opened its first-ever retail showroom in Mumbai at King’s Corner in 1958. Since 1958, the brand has been expanding aggressively with its various collections. Its retail presence makes up for the brand’s success. With over 2 million square feet of retail space split throughout its 1100+ locations in more than 380+ cities and towns, Raymond now has an unstoppable retail presence and is steadily expanding.
The brand has a portfolio of four Power Brands, including Raymond Ready-to-Wear, Park Avenue, Color Plus, and Parx, which makes them currently as of one of the top three branded clothing players in the menswear market.
Across all channels, including 257 Exclusive Brand Outlets (EBOs), 3,300 Multi Brand Outlets (MBOs) (via distributor network), 800 Large Format Store (LFS) chains, and top internet portals, there has been a tremendous increase in recent years.
Raymond created raymondnext.com, a one-stop fashion shop for all the brands under the Raymond umbrella, as its entry into the e-commerce market.
Denim Business
One of the first companies to introduce specialty ring denim in India is Raymond UCO Denim (a joint venture with UCO NV of Europe). Along with serving domestic markets, the company also serves consumers in the Americas, Europe, and Asia. The company has fabric manufacturing plants in Yavatmal, Maharashtra, and Sibiu, Romania, with a combined annual production capacity of 47 million meters. Raymond UCO Denim satisfies the expanding expectations of fashion-conscious consumers and has earned the recognition of top brands in both home and foreign markets.
Tools & Hardware Business
The company entered into the tools and hardware business in 1949. This industry sector is involved in the production, marketing, and distribution of hand tools, power tool machines, and accessories for power tool machines as well as the sale and distribution of precision-engineered parts for tools and hardware like steel files and drills. As of 2020, JK Files and Engineering Ltd. had the largest installed steel file manufacturing capacity, accounting for nearly 25% of the global capacity. JK Files & Engineering Ltd. boasts state-of-the-art production facilities in India that are ISO 9000-2008 certified and have a robust manufacturing capacity of 7.44 million dozen files and 13.2 million pieces of drills annually. Raymond has a market share of more than 60% by sales volume in Fiscal 2021 and is also the market leader in India’s files segment. It is also well-represented in Latin America, Asia, and Africa.
FMCG Business
Raymond is involved in the manufacturing of consumer goods through its associate company called, Raymond Consumer Care Private Limited. Raymond is steadily growing its presence in the category with leading brands like Park Avenue and KamaSutra in the market today.
Automotive Business
By acquiring a controlling interest in Ring Plus Aqua Ltd, a renowned Ring Gear & Flexplate manufacturer in India, Raymond entered the automotive components market. Ring Plus Aqua Ltd., a 1984 incorporation, has a close relationship with the global automotive industry thanks to its manufacturing facility for ring gears, water pump bearings, and flexplates.
Through its warehouses in Canada, the United States, and Germany, Ring Plus Aqua Ltd. also meets the JIT (Just-in-time) needs of its clients. Around 8.2 million Ring Gears, 3.9 million Water Pump Bearings, and 0.62 million Flexplates can each be produced annually by Ring Plus Aqua Ltd.
Real Estate Business
With Raymond Realty, the company entered into the Real Estate space. Each project under Raymond Realty is built on the tenet of “Go Beyond” and attempts to redefine every customer’s expectation. The company has an exclusive website for its realty business – www.raymondrealty.in
Some of the popular brands and services by Raymond Group are:
ColorPlus
Ethnix
Raymond
Raymond Fine Fabrics
Park Avenue
The Raymond Shop
SuperDrive
Kamasutra
Raymond Custom Tailoring
Parx
Raymond – Revenue Model
Raymond’s revenue for the fiscal year 2022 was Rs 50,000 crores. The largest contributors to the company’s revenue were branded clothing and textiles. However, the exact figures haven’t been published. In the fiscal year 2021, Raymond India reported revenue of more than 36 billion Indian rupees.
Raymond – Challenges Faced
As the company is mostly in the manufacturing space of finest fabrics and gets its revenue majorly from the textile business, it fears that the millennials might move away from the concept of textiles and fabrics. Today’s youth are focused on buying ready-made garments and don’t wish to invest in textiles or buy fabrics.
This is one of the biggest challenges the brand is facing and to keep up with the trends, it needs to come up with innovations to maintain its legacy.
Raymond – Mergers and Acquisitions
Raymond acquired J. K. Ansell Ltd on Aug 17, 2017. The rest of the details are undisclosed.
Raymond – Online and Social Media Presence
Raymond has a powerful online and social media presence. The brand has pages on almost all popular social media platforms.
Platform
Followers
Facebook Page
1,357K followers
Instagram Page
220K followers
Twitter Page
10.6K followers
LinkedIn Page
170K followers
Raymond – Advertisements and Social Media Campaigns
Time and again, Raymond has always come up with the best and heart-touching campaigns throughout its 90-plus years of journey. With its motto, ‘The Complete Man’ – Raymond has always shown the characters of a well-read man, a perfect father, an honest friend, and an obedient son, which highlights the true emotions a man can have in him. While the list of campaigns made by Raymond is long, the most recent one is Raymond’s Look Good Feel Good campaign.
This campaign was launched in June, where the brand highlights the joy of giving your old clothes. The campaign is done in association with Goonj, a non-profit organization that undertakes humanitarian aid. The brand asks its viewers to donate clothes and in exchange for their old garments, they will receive free trouser stitching from July 1st onwards.
Another campaign by the brand was rolled out in 2019 called #TailorYourStyle. The ad speaks about the fine tailoring done by Raymond which shows its rich heritage and aesthetic embodiment. The campaign was designed by Grey India. It mostly highlights the customization that customers can get as per their needs.
Raymond – Awards and Achievements
Here’s showing the list of all the major awards won by Raymond:
Raymond ‘The Complete Man’ TV commercial (husband-baby) won the “National Laadli Media & Advertising Award for Gender Sensitivity 2013-14”
Raymond has been placed at the top of the ‘Textile and Garment’ segment as the ‘Most Admired Companies in India 2013’ by Fortune magazine
Park Avenue has won the Best Design Concept of the Year Award for Innovative AUTOFIT Concept at Images Fashion Awards 2015.
Raymond has won the ‘Best Retail Store Design for Fashion Apparel brand” for Raymond Ready-to-wear store, Viviana Mall, Thane from Visual Merchandising & Retail Design Awards 2015.
Raymond has won the ‘Best Window Display 2015″ for the Colors Of Wool campaign from Visual Merchandising & Retail Design Awards 2015.
ColorPlus awarded for ‘Impactful Retail Design and Visual Merchandising’ – Asia Retail Congress 2013
EPC (Engineering Export Promotion Council) India “Export Excellence Award 2011-2012” for Hand Tools Exports in the category of Large Enterprise
Park Avenue Beer Shampoo has won a bronze at the WARC Strategy Awards 2014.
11th Realty Plus Excellence Awards – WESTMid Segment Project of the Year (2019)
Hindustan Times Real Estate Titans Awards 2020
FAQs
Which company owns Raymond?
Raymond group, a global conglomerate owns Raymond ltd.
Who is the Chairman of Raymond?
Gautam Hari Singhania is the chairman and MD of Raymond group.
How many brands does Raymond own?
Raymond owns 4 brands namely Park Avenue, Parx, Color Plus along with Raymond Ready to wear.
Who are its competitors of Raymond in India?
Raymond’s competitors in India are Siyaram’s & Grasim.
Shein has gained immense popularity among the youth. If you are a fashionista then you must have bought some trendy clothes from Shein at a very low price. The company has been very successful in the ultra-fast fashion market. Shein ships in 220 countries and provides clothes for men, women, and children.
According to research, it was found that in 2021 Shein’s mobile app had over 7 million users in the US alone. The hashtag #Shein has generated over 6.2 billion views on TikTok. The estimated revenue of this company is $10 billion every year. Let’s see the Business Model of Shein in great detail.
Shein is a Chinese international B2C fast-fashion online platform headquartered in China. The company was founded by Chris Xu in 2008. The company sells clothes, bags, shoes, accessories, and other fashion items. Shein’s target countries are Europe, America, and the Middle East. The brand is very popular among Gen Z.
Shein mainly works by targeting the audience who prefers western clothes. As for the target market, Shein mainly works for young people who want to be unique and socially acceptable.
Before we have a deeper look at the business model let’s first understand how the fashion industry works. This will help us better understand the Business Model.
Evolution of the Fashion Industry
In the late 1990s and early 2000s, Zara and H&M introduced the world of fast fashion. Buying trendy clothes from the stores at a very low price was something new to the people.
Zara introduced this phenomenon to the people and made a lot of money. The key components that helped Zara become successful were shorter manufacturing cycles, following the fast-moving trends, just-in-time logistics, and big investments in flagship stores located in most city centers.
This enabled the stores to provide a wide variety of trendy inexpensive clothes that changed every week. Variety, speed, and convenience were the main factors of the fast fashion model.
Until the 2010s this business model worked pretty well. Since then, e-commerce has penetrated the market which led to the growth of mobile commerce. Due to this, the fast fashion industry changed completely.
Ultra-Fast Fashion
Over time many people started using mobile and mobile commerce grew rapidly. Due to the internet, people were able to get information instantly. Everything shifted online. Using social media and other online platforms people were able to understand fashion trends instantly in a very short time.
Fast Fashion evolved to ultra-fast fashion where only a few designs were created to test the likes of people. If the people demanded the clothes they were made in large numbers. The ultra fast-fashion retailer invested all its capital in capturing fashion trends even faster.
Clothes and other fashion accessories were manufactured at a very high speed. Massive money was invested in logistics to deliver products to millions of customers without operating physical stores. Now, as you have understood how the ultra-fast fashion industry works and how the fashion industry has evolved let’s have a look at the business model.
To understand the business model of Shein let’s first see how a fast food delivery company works. There are thousands of ghost kitchens everywhere. When you order food online the food delivery services take the food from these ghost kitchens and deliver it to your doorstep.
Your preferences and the number of orders you place dictate the opening and closing of these ghost kitchens. Shein’s business model also behaves similarly. Shein does a partnership with these ghost factories and promises demand. They install their order system in these factories which helps them to track and deliver the orders efficiently.
Shein teaches them how to manufacture things efficiently. In this way, Shein produces fashion items at a much faster rate. The company understands what things are booming in the fashion industry, produces product pages, checks the engagement behaviour, and then tells the factories to produce the products.
Shein has a strong online presence. After reading about the evolution of the fashion industry and ultra-fast fashion you must have understood that a strong online presence and understanding the fashion trends quickly are necessary to be successful in this industry.
Shein advertises aggressively on TikTok and other social media handles. After working for so long in this industry Shein is able to understand the fashion trends much faster than other companies. The company has further shortened the manufacturing cycles.
The company’s marketing is majorly focused on social media. Shein has understood that social media has a great influence on youth. The company is the #1 brand for TikTok teens.
Shein has an army of fashion bloggers that constantly post content on TikTok using the hashtag Shein. In return, Influencers get free merchandise. On YouTube, people share their experiences with Shein. Since the company provides a large variety of products many YouTubers are interested in reviewing their products.
Affiliate Programs
Shein’s affiliate program has helped the company to increase its conversions. In this program, people can earn a commission by recommending Shein products to others. If they place the order you get a small commission. Due to these affiliate programs, many teens have promoted their products on social media. This has increased the company’s reach.
What’s Unique About Shein?
Shein is the most preferred fashion brand by the young generation. There are multiple things in Shein’s business model that makes it different from other:
Model
To have the upper hand over its competitors the company uses the digital-first model. The digital-first model enables the customers to make a purchase by the means of a digital platform and get it delivered at their preferred locations.
Marketing Strategy
Shein uses a micro-influencer marketing strategy. There are several micro-influencers in coordination with Shein and the company provides them with gifts at the end of each month. This give-and-take relation makes a better marketing strategy for the platform.
An Indian Actress Advertising Shein Sale on her Social Media Account
Use of Social Media
Social Media users have noticed Shein on their screens while scrolling through social media platforms like YouTube, Tik Tok, Instagram, etc. The media influencers contribute majorly to the selling of Shein products at such mediums. This strategy enables Shein to directly showcase its product in the market.
How Does Shein Make Money?
Shein’s revenue model is simple. The company earns money by selling products online. They sell a cheap version of trendy clothes and fashion items via their mobile app. The company uses the vertical integration strategy.
Shein earns its revenue in multiple ways. The most preferred method is by selling clothes. Shein purchases clothes in bulk quantity for a cheaper price and then sells them at a higher percentage.
Apart from this, Shein also replicates the high-end dresses to sell them at relatively lower prices. This practice also increases the sales of Shein and hence making an additional column in the money chart.
Apart from all the above money-making options, Shein also provides in-app advertisements on its platform and generates some revenue through it too.
Shein Revenue for 2020-2022 in US Billion Dollars
Conclusion
Shein understood fast fashion better than other companies. As the company provides a large variety of products at a very low price many people love shopping through Shein. The company has a lot of Influencers on various social media platforms which helps them to increase its popularity.
In the west, many people prefer Shein over Amazon. This shows how much the company has grown over these years. To stay in this race for a longer period the company needs to identify the fashion trends quickly and provide those clothes to the people before it gets out of fashion.
FAQs
Who is the CEO of the Shein?
The current CEO of Shein is Chris Xu.
Who owns the company, Shein?
Shein is owned by a parent organization named Nanjing Lingtian Information Technology with four major shareholders named JAFCO Asia, IDG Capital, Sequoia Capital China, and Tiger Global Management.
Why is Shein so successful?
There are numerous reasons for Shein to be counted as a successful firm. Some of the factors responsible for making Shein successful are its effective marketing strategy, customer value, and brand model. Shein values customer satisfaction over profit and is in a give-and-take relationship with its influencers to advertise.
Is Shein a profitable company?
Shein does not provide many insights into its financial details. However, with the available information, one can easily estimate that Shein is a profitable company.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Zilingo.
Like that of so many other sectors, fashion and apparel’s digital transition has advanced dramatically under COVID. This has influenced not just how people engage with brands and merchants, but also how the market runs within, including inventory management, prices, and logistics, as well as production and product design.
A sector that has always (and continues to be) centred on the foundation of ideas, creative, and innovative expression is now incorporating more technology into the equation, implementing innovation to new levels.
Zilingo is a B2B technology platform that provides innovative manufacturing, sourcing, and trading technologies to the global clothing distribution chain. It was formed in 2015 to make an interconnected and accessible supply chain approachable to all.
Here’s the success story of Zilingo that covers all about Zilingo, the Startup Story and Growth of Zilingo, Zilingo Competitors, Zilingo Revenue, Zilingo Business and Revenue Model, and more, you can check ahead!
Zilingo is a B2B platform that connects all parts of the fashion industry’s supply chain, from raw material suppliers to merchants to buyers. They offer a wide range of technical help, including data science, online platforms, and other virtual services, as well as company sourcing and finance.
When a small localised store tries to move online or attract more people, they are confronted with several challenges. Funding, technologies, accessibility, and rivalry from more prominent, more established companies also impede them.
Although their commodities may have unrealised potential on the global market, many merchants find it difficult to make a profit in that environment. When seeking to sell to a statewide or worldwide audience, small businesses sometimes have to go through multiple intermediaries and incur numerous costs. They are losing money because their margins are being stretched. Zilingo focuses on this problem, assisting small enterprises in receiving their due.
Zilingo is a comprehensive, adaptable platform that helps small businesses increase efficiency and revenue. This service is available to merchants in a variety of nations and brings together a large number of producers and manufacturers.
Simultaneously, the design, production, and other parts of the final product remain decentralised. Small vendors may be independent and true to their style without paying a listing fee, which Zilingo does not charge its manufacturing workers.
Their varied staff, decentralised culture, technical innovation, and devotion to assisting smaller businesses set them apart from the competition. They offer a wide range of items obtained from many countries and providers, all of which are supported by this platform. This enables small companies to deal directly with a bigger market, such as brands or other clients, over the internet.
Products of Zilingo
Zilingo operates as a technology platform that is empowering the global supply chain. It provides innovative products and trade services to power brands, wholesalers, retailers, distributors, factories and more. Zilingo offers:
Z Trade – This vertical helps Zilingo to extend the facilities of sourcing custom-made apparel, fabric, yarn and more.
Zilingo Trade
Z Factory – This Zilingo vertical helps Zilingo to let the factories optimise their operations.
Zilingo Factory
Z Connect – Z Connect of Zilingo offers omnichannel, inventory management and marketing solutions as services.
Zilingo Connect
Zilingo Services
Zilingo services are:
Z Marketing – Zilingo offers marketing solutions to help brands maximise their sales. This is done by the in-house experts that Zilingo houses.
Z Fintech – Z Fintech uses the transaction data to offer companies and individuals better access to capital for the growth of their businesses.
Z Logistics – Zilingo offers the optimisation services of logistics costs and provides others with the facilities of flexible payments.
Zilingo – Industry
From the development of the needle and thread to the emergence of e-commerce, fashion was always at the leading edge of innovation. Fashion, like technology, is forward-thinking and progressive.
The fashion industry has been one of the world’s largest, with a market value of more than $3 trillion expected by the end of the decade. Fashion technology is evolving at a quicker rate than ever before. Fashion firms are working with technology suppliers, buying startups, and even developing their technologies to expand their streams of income and marketing strategies.
Similarly, the sector is re-evaluating operations across the supply chain in a drive to reinvent itself as it confronts a long-overdue confrontation with its social and environmental consequences.
With organisations and businesses growing into new sectors of the fashion business, there is a clear trend toward adopting technology to improve the consumer experience. New fibres and mixes are emerging as manufacturing methods improve, allowing for greater product diversification. The fashion industry’s retail sector is putting a lot of emphasis on making the consumer’s buying experience easier and more enjoyable.
Collaborations are resulting in fascinating new goods by combining the talents of several sectors to develop something efficient and innovative. With a constant stream of new and interesting propelling the fashion industry forward, these unlimited possibilities have more room to grow.
Zilingo – Name, Logo, and Tagline
Ankiti Bose and Dhruv Kapoor founded “Zilingo” in 2015, the name being a spin on the term “zillion,” which also means ‘Gift of god.’ Bose got the idea for Zilingo while on vacation in Bangkok and realised that many SMEs lacked an online footprint. Dependability, freshness, and expressivity are all symbolised by the word Zilingo.
Zilingo Logo
Zilingo’s tagline says, “Dare to be Bold”.
Zilingo – Founders and Team
Ankiti Bose and Dhruv Kapoor founded Zilingo in 2015.
Ankiti Bose and Dhruv Kapoor – Founders of Zilingo
Ankiti Bose
Before establishing Zilingo, Ankiti spent three years in management consulting and venture capital at Sequoia Capital and McKinsey & Company. She focused on digital commerce possibilities on digital devices at Sequoia. She worked on strategy and operations in a variety of sectors at McKinsey & Company.
Ankiti graduated from St. Xavier’s College in Mumbai with a Bachelor of arts degree in Maths and Economics. Ankiti adds a wealth of experience and expertise in the mobile e-commerce market to Zilingo.
She takes a hands-on, analytical approach to operations and strategy decisions, and she was heavily involved in all the elements of strategic and operational decision-making of the company. She was the CEO of the company before she was ousted from her role in April 2022. Ankiti Bose was associated with financial irregularities of the company and was eventually suspended from her duties for 51 days, and after this suspensation, she was finally terminated.
Ankiti Bose again has quit the Zilingo board, as of June 30, 2022. She has stated the same from her Instagram handle, adding that the board even failed to show her the reports from Kroll and Deloitte. The firing of Ankiti Bose from the CEO position and this resignation that she brought in to quit the Zilingo board, has two faces. Here, while the board is citing financial irregularities under Bose, Ankiti has brought up harassment complaints to the investors and claims that these were the reasons that changed the board’s mind against her. However, the Zilingo board denied all the allegations of any wrongdoings whatsoever.
Dhruv Kapoor
Dhruv Kapoor is an IIT Guwahati alumnus and is known as the CTPO of Zilingo. He worked at the gaming company Kiwi Inc., as a software engineer, before joining Zilingo. Kapoor was a Software Engineer at Yahoo before that.
Aadi Vaidya, the Zilingo COO, quit Zilingo after 7 years of being with the firm, as of July 30, 2022. Along with talking highly of his tenure with the company, where he learned too many things to sum up in words, Vaidya stated that he is geared up to meet with interesting people, read, travel and re-prioritise. Aadi is now looking to embrace his next adventure.
The resignation of Aadi comes after Ankiti was separated from the firm in May 2022, and Ramesh Bafna, the CFO of Zilingo, stepped down in the same month. Besides, Naushaba Salahuddin, the head of PR and communications, also quit the beleaguered company in the meanwhile.
The employee strength of Zilingo now ranges between 201-500 employees, as per its LinkedIn profile.
Ankiti was once on a vacation trip to Bangkok with her pals. The majority of the sellers at Thailand’s Chatuchak market came from distant communities miles away. They were unable to market their products on the internet. The main reason is that they lack both technical and economic expertise.
She chose to do business in Thailand because it could benefit over 8000 small businesses there. She founded Zilingo, one of Southeast Asia’s most popular online platforms. By developing the right customers throughout the world, particularly merchants, obtain larger advantages in their product range.
Ankiti earned her bachelor’s degree in Economics and Mathematics from St. Xavier’s College in Mumbai in 2012. In 2014, Ankiti met Dhruv Kapoor during a house party. They shared the same talents and abilities, as well as the desire to establish a business by permitting a more inventive technique.
Dhruv worked as a software developer for a well-known gaming firm, while Ankiti worked as an analyst for Sequoia India. During the party, Ankiti and Dhruv established a deal that allowed the two of them to leave their jobs and start their own business. Both of them quit their jobs within four months to work on Zilingo, a fashion e-commerce technology company.
Two of them put their resources and savings of around $30,000 into the Zilingo startup concept. The Sequoia company also put money into Zilingo. With its innovative and open-minded founders, Zilingo has had more success. Eventually, Ankiti became the CEO, and Dhruv the CTPO of the company.
Zilingo – Mission
Zilingo’s mission is “to provide a platform where thousands of fashion merchants could sell and become part of the digital economy.”
Zilingo – Business and Revenue Model
On the back of its robust business model, Zilingo had geared to revolutionize the clothing and accessories industry by assisting small firms in bypassing intermediaries on their journey to a massive internet market. It decided to provide traders with an end-to-end cloud-based platform that not only connected but also provided technical and financial assistance to numerous independent participants.
The company operates as a B2B platform in the fashion industry that offers small businesses the resources, networking, financial, and technical help they need to interact with other small businesses and their larger client base. To grow their firm, a small retailer or designer can now acquire raw materials from suppliers, manufacturers, and even tech help.
Zilingo has raised over $347 million in funding and had almost closed in terms of valuation to become one of the Indian unicorn companies, but that didn’t happen ultimately. However, it aspires to become a big player in fashion by building symbiotic connections with small merchants and enterprises since they are committed to enabling small firms in the sector. It wants to become a platform that enables small brands to band together and continue growing, in rivalry with multinational companies.
The Zilingo revenue model primarily depends on the business-to-business operations that Zilingo does, of matching brands with suppliers. In 2019, the same operations successfully contributed to 80% of the revenues that Zilingo received.
Zilingo has received 7 funding rounds in total as of June 20, 2022, which might receive yet another funding round worth around $8 mn in equity in tranches to prevent the voluntary liquidation of the company, as stated by the letter that the founders of the company have forwarded the board, according to reports dated June 20, 2022.
Date
Round
Amount
Lead Investors
Jul 1, 2021
Debt Financing
$40M
–
Dec 5, 2019
Venture Round
–
–
Feb 11, 2019
Series D
$226M
Sequoia Capital India
Apr 4, 2018
Series C
$54M
Burda Principal Investments, Sequoia Capital India, Sofina
Sep 12, 2017
Series B
$18M
Burda Principal Investments, Sequoia Capital
Sep 5, 2016
Series A
$8M
Sequoia Capital, Susquehanna International Group (SIG), Venture Capital
Nov 9, 2015
Seed Round
$1.9M
–
Zilingo – Acquisitions
Acquiree Name
About Acquiree
Date
Amount
nCinga
nCinga is offer an all-encompassing solution for the apparel, manufacturing and telecommunication industries.
Dec 17, 2019
$15.5M
Zilingo – Growth
Zilingo has achieved quite a growth since it started. The company has powered innovation for 20,000+ companies worldwide. It even chased the unicorn valuation and reached $970 mn in net worth before the outbreak of the Covid-19 disease. The customers of Zilingo include reputed brands like Flipkart, FirstCry, Myntra, Wrogn, Nykaa, Aditya Birla Group, Radnik, Dressmen, Redwolf and more. Zilingo went from being a company that was all set to raise millions of dollars to one that needs to fight for its survival. Remarking on the same, Ankiti Bose, the Former Founder, CEO, and Board member, said “hundreds of employees and customers are also in a state of limbo and do not have any clarity on their future: just like me.”
Numerous media reports stated that the Zilingo company is all set to liquidate in order to pay its creditors off, while Bose has opposed this decision of the board, mentioning that would result in unsettling numerous employees.
Zilingo’s issues began with disorganized management and a lack of transparency in expenditures and quickly escalated into a violent ideological battle between founders Ankiti Bose and Dhruv Kapoor, which risked swallowing the company whole.
Lack of Proper Software
In the early days, the capital-intensive B2C vertical and the lack of a software platform for B2B operations led to overpaying on marketing, staff committing fraud, and more.
The Covid-19 Onslaught
Zilingo was once a company that was a soonicorn, the value of which neared $970 bn in 2019. However, with the onset of the COVID-19 pandemic, revenues started dipping and layoffs followed. The revenues dropped to 1/3rd of what it was prior to the pandemic period, which was roughly estimated at around $40 mn. Even the Former Co-founder-CEO, Ankiti Bose also took a 30% pay cut as a result.
Legal action against the co-founder and the sack of CEO Ankiti Bose
Ankiti Bose is believed to have taken legal action against co-founder Dhruv Kapoor and is attempting to purchase back Sequoia’s 26% stake in the firm, notwithstanding her suspension.
Ankiti Bose and Sequoia’s Shailendra Singh had a personal spat about the direction of the business, capital burn, and the absence of a route to revenue gains, all stemming from the company’s concentration on a rapid expansion that began in 2018. And that unfolded as conflicts between Bose and Dhruv Kapoor, the other co-founder, grew.
There have also been claims that Kapoor and other top workers at the business concealed sexual harassment reports. Bose is reportedly considering suing Kapoor as well as buying back Sequoia’s investment in the firm.
It was more like a jigsaw puzzle, with concepts and tactics that lacked practical vision and preparation. In the early years, the digital platform was mostly absent, and Zilingo burned through millions of dollars marketing and promoting the B2C fashion vertical. Founders argued over various ideas and even alleged practises of sexual harassment in the workplace throughout all of this. But now the case against Zilingo is that he committed deliberate fraud. At least, that’s what the board says, but we don’t know what the fraud was, how it happened, or how it escaped the notice of the board and key VCs like Sequoia, Burda, Temasek, Beenext, and others.
The Zilingo board was already looking forward to a voluntary liquidation of the company, but the founders Ankiti Bose and Dhruv Kapoor have joined hands to make a management buyout offer of the company, as per reports dated June 20, 2022. The letter that was issued by the Co-founder and CTPO of Zilingo Dhruv Kapoor, mentioned that the new investor will infuse $8 mn in equity in tranches. According to this new offer, if the deal comes through, “pursuant to Singapore’s Insolvency, Restructuring, and Dissolution Act, Zilingo will be transferred to the ownership of a newly incorporated entity.”
A look at how the events unfolded and the firing of the company CEO and Co-founder Ankiti Bose
If you are wondering how Ankiti Bose was fired all of a sudden, then here’s a look at all the events that happened and led to the eventual firing of the Zilingo CEO Ankiti Bose:
April 12, 2022 – Ziling shareholders discovered financial irregularities and suspended Ankiti Bose until May 5th. Bose was first called to a meeting dated March 31st, 2022, and was briefed about serious complaints against her, and all about financial discrepancies and mismanagement. Bose, in turn, called the company’s actions a “witch hunt”.
April 14, 2022 – Shailendra Singh, Sequoia Capital MD stepped down.
April 19, 2022 – Zilingo Board discussed replacing Ankiti Bose, and talks of the company CFO Ramesh Bafna to be elevated as the CEO circulated.
May 4, 2022 – The Zilingo Board appointed Deloitte to launch a probe after Ankiti Bose claimed that sexual harassment was an issue after she was suspended. Dhruv Kapoor also penned a note to the employees where he defended the company.
May 20, 2022 – Zilingo fired Ankiti Bose, and stated that it can also take legal action against her.
FAQs
What does Zilingo do?
Zilingo is a B2B technology platform that provides innovative manufacturing, sourcing, and trading technologies to the global clothing distribution chain.
Who founded Zilingo?
Ankiti Bose and Dhruv Kapoor founded Zilingo in 2015.
When was Zilingo founded?
Ankiti Bose and Dhruv Kapoor founded Zilingo in 2015.
Is Ankiti Bose still the CEO of Zilingo?
The former CEO-Co-founder, Ankiti Bose was fired by Zilingo on May 20, 2022. So, she is no longer the CEO of Zilingo.
Why was Ankiti Bose fired by Zilingo?
Ankiti Bose was sacked by Zilingo board because of financial irregularities noticed in the company in relation to Ankiti Bose.
Insights shared by Mr. Nitin Pamnani, Co-Founder, iTokri
iTokri as a brand believes in taking away the burden of sale from artisans and encouraging them to focus on their craft, ensuring that the artisans get due credit for their art by selling products under the artisan’s name on our platform. We should not forget that the artisans are the real creators and they must always have the freedom to create and grow themselves as an artist. Companies should aim to conserve and upgrade their traditional lifestyles. Artisans are an integral part of our social structure. Today, this is the responsibility of every entrepreneur and other business in India. Nowadays many brands use the technique of using the Stock & Sell Model where the goods/products physically remain with the brand when they are sold to make the best of the opportunity by connecting many artisans with their consumers where every product is quality checked.
iTokri Team
Working with the artisans through conducting consulting sessions where the brand’s purchase team explains the demand type from the international customers and buyers provides better analytical insights to them. Regulating the market performance and sharing them with the artisans give them an idea of various types of product categories, prices, etc. At the same time, putting in a lot of effort to understand the business demand and try to balance the consumer expectations and artisans’ work helps a lot. Focusing on art coming from across the country and not limiting it to only one or two geographical regions of India increases the worth of the collection and maintains the diversity that brands always look for which also remains a huge challenge in today’s time and age. Developing a propriety tool that helps with data modulation and building a machine learning module works well for many small businesses catering to international markets which in return helps improve purchase forecasting. This approach not only helps in forecasting demand and managing inventories but as a part of the value chain, helps the artisans to produce and understand the market demand better. It optimizes the purchased quantity leading to enhancing the production process.
The ultimate goal is to create artisan-led crafts that support traditional artworks through restructuring and create better job opportunities for the rising generation paving the way to the international markets. An entrepreneurial approach should be taken for sustainable growth where groups, individual initiatives, and decisions do not get limited, making the collectives flexible enough to respond to market realities. To grow internationally, brands should focus on developing their e-commerce strategy to become multichannel brands, and to continue to create and introduce new products which are sustainable, modern yet comfort-driven. Also, women-led businesses are an added incentive to our economy. The increasing demand for Indian handicrafts resulting in an increase in women’s participation in a variety of roles, primarily from underprivileged strata of our society making significant contributions to the industry, has led them to become socially and financially self-independent. They get all the recognition and a fair amount compared to the market rate which helps the sellers sell their products efficaciously that builds their brand in a unique light in the process.
The D2C route has greatly helped current brands get a toehold across the markets where well-established brands have ruled. Long-established players, who have marked their presence over the time in offline retail and have intimidating distribution clout, are now starting to take the expeditiously growing online channels seriously to defend their overall market share. Moreover, the Aatmanirbhar Bharat movement has exhilarated Indian entrepreneurs to put made-in-India products on the global map, and this is where Indian brands are engraving a niche for themselves in the international market. The mission is to enable artwork communities to sustain their culture with systematic indoctrination and ecosystem building to create modern designs with traditional techniques for sustainable livelihoods through their craft.
Company Profile is an initiative by Startup Talky to publish verified information on different startups and organizations. The content in this post has been approved by Chanel.
The growing appetite for the fashion industry has never settled since the late 1800s. Reports claim that it was the time when the seeds for fashion shows and other fashion events were sowed. Despite all the hardships that unfolded during the early and mid-1900s, the fashion industry continued its uphill path. The industry today is valued at $3 trillion and accounts for 2% of global GDP.
Chanel is one such luxury fashion company that was established over 100 years ago. Started as a small millinery shop by a fashion designer in 1909, Chanel today has expanded its operation worldwide and has over 20,000 employees. This article covers the success story of Chanel, its founders, competitors and every aspect of this establishment.
Chanel is a luxury fashion brand that was founded by Coco Chanel in 1910. The company was based in France, whereinafter 110 years, the board has decided to shift their global headquarters to London. Chanel deals with luxury clothes, jewelry, perfumes and other fashion goods. This luxury brand mostly focuses on women’s outfits and accessories.
Chanel serves as a trend-setter in the fashion industry. Coco Chanel, as a fashion designer and a businesswoman, made sure that the elegance of her brand never fades despite world wars and geographical and environmental barriers. Besides the outfits, Chanel is known for its wine,watches, perfumes and skincare products too. The company today operates over 310 boutiques worldwide that are located in opulent communities like airports, extravagant stores, high streets, etc.
Chanel – Founders and Team
Founder of Chanel – Gabrielle “Coco” Chanel
Chanel remains a privately held company owned by the grandsons of Pierre Wertheimer, who was a business partner with Coco Chanel. Here are the founder and other key people associated with Chanel:
Gabrielle Chanel (Coco Chanel)
Gabrielle Chanel was the founder of the luxury brand ‘Chanel’. ‘Coco’ was a nickname given to her during her time as a songstress. She was orphaned at a young age. Facing the world on her own since childhood gave her confidence and strength. Coco Chanel’s qualifications as a fashion designer and daring nature aspired her as a successful businesswoman.
Pierre Wertheimer
In 1924, Pierre Wertheimer joined hands with Coco Chanel as a business partner for 70% shares in the company. The agreement was that Wertheimer should finance the production and distribution of Chanel’s perfumes. Another person named Theophile Bader was given 20% shares for marketing the same in his departmental stores. Later, Coco Chanel had some disagreements with them and happened to file a lawsuit against Wertheimer. She lost complete control of the company to Wertheimers in 1954.
Alain Wertheimer and Gerard Wertheimer
Alain and Gerard are currently the co-owners of Chanel. Alain serves as the chairman of Chanel and Gerard heads the division of Watch. They are the grandsons of Pierre Wertheimer.
Leena Nair
Leena Nair is the Global CEO of the brand Chanel. She was appointed to this new role in January 2022. Leena Nair has earlier been a part of Unilever as its Chief Human Resource Officer. She is an Indian and was born and brought up in Kolhapur, Maharashtra.
The story of Chanel began in 1910 when its founder Coco Chanel opened a hat store named ‘Chanel Modes’ in a flat in Paris. Etienne Balsan, who was a friend of Coco, helped her with his bachelor’s apartment. Arthur “Boy” Capel, the lover of Coco Chanel, funded her early business. He helped Coco to set up her own stores in Paris. This also helped her to expand the business from only hats to sportswear and other outfits for women. As the business started to grow Coco Chanel kept increasing the outlets and widened her focus on other products like perfumes and jewelry. Her love affairs and loyal friendships helped her succeed in her early stages of Chanel.
Chanel – Mission and Vision
Chanel has a mission “To be the Ultimate House of Luxury, defining style and creating desire, now and forever”. The company stood to its mission right from its inception. It created new styles and never compromised with its grandeur and opulence.
The vision of Chanel is to give worldly experience to the customers through its products that remain timeless. The wearer should enjoy a quality product with utmost comfort is the primary vision of the company.
Chanel – Name and Logo
Chanel logo
The name of the elegant brand ‘Chanel’ is derived from the founder’s name Coco Chanel. The logo of the company consists of two ‘C’s interlocking each other. This logo was designed by Coco Chanel herself in 1925. There are a couple of reasons being circulated for those two Cs. One reason unfolds is that the Cs stand for the name of its creator Coco Chanel. Another claims that one C represents Coco Chanel and the other stands for Capel (Arthur “Boy” Capel).
Chanel – Challenges Faced
As a century-old company, Chanel has faced numerous challenges throughout its journey. Within just four years of seeding the company and one year since it started sprouting, the First World War started. WW1 caused a huge difference in fashion, demand for clothes and scarcity of fabrics and employees. Even the manufacturing units were struck in warzones. This was the major setback faced initially by the company.
The next challenge arose during the Second World War. Chanel happened to close the doors of its outlets in 1939 following the war outbreak. The doors of Chanel remained closed for years. When she came back into the business in 1954, Coco Chanel and the company had lost their reputation due to her rumoured involvement in the war with Nazis. Also, it was challenging to cope with new generation designers which she eventually did in her 70s.
The death of Karl Lagerfeld, who was the creative director at Chanel since 1983, created a huge gap in the company’s creative department. His contribution to Chanel was priceless.
The Covid outbreak stumbled Chanel’s business to a great extent in 2020. The CFO of the company said that the Covid impact on the luxury fashion sector could last up to 2 years and the recovery might take some time.
Chanel – Acquisitions & Investments
Chanel has made several investments and acquisitions over the years. Here is the list of those companies that Chanel has invested in:
Company Name
Date of Acquisition/Investment
Investment Round
Amount
Arcaea
Oct 27, 2021
Series A
$78 Million
P2 Science
Jan 29, 202
Series C
$12 Million
Sulapac
Dec 11, 2019
Venture Round
€15 Million
Evolved By Nature
Jun 12, 2019
Corporate Round
–
Sulapac
Dec 7, 2018
Funding Round
–
Samanta
Jul 11, 2019
Acquisition
–
Orlebar Brown
Sep 30, 2018
Acquisition
–
Colomer Leather Group
Aug 31, 2018
Acquisition
–
Other than the above companies Chanel has acquired a 40% stake in Renato Corti and Mabi. Mabi is a high-end handbag manufacturer and Renato Corti is involved in the leather business. A 34% stake was procured in the lingerie and swimwear manufacturer Grandis. The overall investment had cost $169 Million for Chanel. The company also took over the majority stake in the Italian knitwear company Paima for an undisclosed amount.
Chanel – Growth
The growth of Chanel has been consistent and extraordinary. Despite all the hardships, like World Wars, the loss of its founder, the death of the creative director and many more, Chanel kept marching forward by enhancing its existing division and introducing new ones.
Starting an outlet in an apartment with the help of a friend in 1910, Coco Chanel opened an independent store in 1913. The hat business was extended to sportswear. The number of stores increased along with their product varieties. In 1920, Chanel started the stylish haute couture style of dressmaking. The year 1924 saw the introduction of Chanel’s costume jewelry and signature cardigan jackets followed by the popular Little Black Dress in 1926.
After a setback during WW2, Chanel came back strong with the introduction of gemstone jewelry and iconic handbags in 1954 and 1955 respectively. After Coco Chanel died in 1971, the company lacked a potential creator and designer. But in 1983, with the addition of Karl Lagerfeld, the Godfather of Fashion, Chanel’s innovation and growth were on an uphill phase. By 1990, Chanel became a popular global luxury fashion brand and still continues to be.
The following are some of the competitors of Chanel:
Gucci
Gucci is an Italian luxury fashion brand founded by Guccio Gucci in 1921. It is one of the top competitors of Chanel. Gucci’s products and services have excellent quality and finish that has a great reception among customers. Though Gucci is 11 years younger than Chanel, they both almost stand beside each other in the competition.
Louis Vuitton
Louis Vuitton, popularly known as LVMH, is another French luxury brand similar to Chanel. It was established in 1854 and is one of the leading fashion brands in the world. Louis Vuitton manufactures products for both men and women. The company has set benchmarks for the design and quality in the industry.
Prada
Prada was established in 1913 and is known for its leather products and travel and fashion accessories. The company markets its products through its 618 outlets spread across the world and also online. Prada is known for its quality, color and fabrics.
L’Oreal
L’Oreal is just a year older than Chanel and was incorporated in France. It is one of the largest cosmetics companies in the world. L’Oreal competes with Chanel through its perfumes and skincare products.
Chanel – Future Plans
Chanel is working towards giving its share of contribution against climate change. The chairman of the company. Alain Wertheimer said that the company is shifting plans to go green and use 100% renewable resources in their production by 2025. They have a strategy planned for this and named it Mission 1.5°.
Chanel has launched a program named ‘Chanel Culture Fund’ to encourage and support creators and artists across the world. This fund is supposed to help organizations and partnerships to conduct programs that promote culture and society. Chanel believes that this program will help them develop international partnerships, which in turn benefits their business.
FAQs
Who is the founder of Chanel?
Gabrielle “Coco” Chanel is the founder of Chanel.
What business is Chanel involved in?
Chanel is a luxury fashion company that produces and sells ready-to-wear women’s clothes, perfumes, watches and skincare products.
Who is the CEO of Chanel?
Leena Nair has been appointed as the global CEO of Chanel in January 2022.
The article is contributed by Shivaani Jain – Co-Founder, TAGGD
In this age of ‘new kind of fashionable’, it’s no longer uncool to sport homegrown labels. Back in 1991, the Indian economy opened doors and flooded the market with foreign goods. These were mostly lifestyle brands that Indians had long heard about, but never got to sample. Liberalisation also created the conditions for—maybe even inspired—indigenous creators to later prosper at home and also abroad.
More than 30 years later, from those watershed weeks and months, Indian fashion designers – to name just one creative niche – are now making waves, among local as well as international clients. Once restricted to those with money to spend, fashion has become democratised as it has penetrated non-metropolitan India. And because it is online, it is widely available, accessible and affordable. No wonder it is being endorsed and embraced by millions who reside off the beaten metro track, who crave the same apparel and attire – casual, formal and informal – as their megalopolis-living counterparts, and also the same comforts and indulgences.
Indeed, the bigger transformation is happening outside of Delhi, Mumbai, and Bangalore. Today, it is small-town India – small in size but certainly not in aspiration – that is shaping the India of the future, in terms of what it buys and even the lifestyle trends to come. So, what a Moradabad, a Coimbatore, a Nasik and a Cuttack thinks today, India will likely think the same tomorrow.
The changing face of lifestyle
This is not entirely unexpected, but it has been hastened by COVID-19, a process quickened by families being confined indoors and thus relying on e-commerce to take care of their desires as much as their needs. The pandemic brought home to us that life indeed is short, and we might as well make the most of it while we’re at it. So, if wearing that funky outfit, or that sexy one-piece (designed by one of us) allows us to feel good, why not indulge?
Unsurprisingly, it’s the digital revolution that has made e-commerce accessible to Tier 2 and Tier 3 markets, thanks to the government’s Digital India initiative. This has enabled fashion and other brands alike to target the country’s non-metro towns and cities as future growth areas while giving the clientele here options besides the tried-and-tested names, and the opportunity to stay in touch with the latest trends in the fashion domain.
Because, when it comes to fashion, brands and collections are the same almost everywhere, and online shoppers are not guaranteed any exclusivity when they go looking to add to their wardrobes. Hence, now, they are more than willing to try out – and accept – labels that don’t come with the big-city tag, and to experiment with brands that are new to the market, and of which little is known.
In fact, the very thought of helping homegrown brands from locations off the fashion radar, in towns and cities away from the major urban centers, has empowered patrons in these places to own and wear such labels with pride. And while the brands may lack the staying power and cachet of the top-of-the-line labels, they do understand the power and magic of digital. So, assisted by on-off lockdowns and a population habituated to virtual shopping, they are evolving by adapting to the digital savviness of the consumer as well as the changing face of the industry.
The success of homegrown brands has been further driven by the ubiquity and high impact of influencers. Alongside, the rise of influencer marketing has given small-city youth a platform to leverage their presence on social media and earn a decent living. Fashion offers rewards as much as it lifts spirits and boosts confidence.
The well-heeled and well-travelled may still opt for high-street chains such as Zara, Marks & Spencer or H&M (among many others) but a growing number of Indians are much less hung up about the ‘name’ than their predecessors once were. And the reason behind this change is the fact that there are many more indigenous designers and labels out there, a majority of them boasting creations of great standards, and more than capable of giving British, European and American brands a good run for their money.
Moreover, these made-in-India brands are nowhere near as overpriced as some of their international counterparts are. In fact, they are very reasonable on the average middle-class pocket, offering fashion and lifestyle that is affordable for you and me.
The metros may be where all the action is, but hidden from the eyes of many metro denizens is what’s happening in India’s Tier 2 and Tier 3 cities. Already, girls and boys from these urban spaces form a sizeable chunk of service economy across the country. This is a demographic that is growing, and it is one that will constitute a greater part of the workforce of tomorrow’s India. And, as their profiles grow, so do their ambitions. These confident Indians seek nothing but the best—in clothes and accessories, in gadgets and cars, in holidays and experiences.
There are e-commerce marketplaces and e-retailers successfully catering to and answering this swelling demand. Yet, while women’s wear and menswear might make up the bulk of the sales, Mrs and Mr are just as interested in jewellery, cosmetics and home décor—and when it comes to clothes, their junior or teen daughters and sons don’t want to be left behind.
It really is a whole new ecosystem – of hip and homegrown fashion and lifestyle brands, and their customers who are looking to keep themselves up-to-date with the latest trends. And in this ecosystem, the fashion influencers are key facilitators, playing an important role by sharing styling ideas and tips—to bring out the best in you, to make you look good.
Thankfully, gone are the days when fashion in India was a preserve of the elite and the wealthy, and that is surely for the better. Because its increasing inclusivity has exposed the majority of Indians to lifestyle choices they never had. It’s of little surprise, then, that homegrown brands are making a beeline for Tier 2 and Tier 3 cities, for it is here that cash registers are ringing at their loudest. When it comes to fashion, there’s no more happening place in the country than the small-town India of big dreams.
Fashion standards have changed on a daily basis in response to trends, customer preferences, supply and demand. To maintain a favourable result, fashion enterprises should keep an eye on the market every day by manufacturing new designs that could bring good results.
Have you heard of Paris Fashion Week, where celebrities and models dress up and walk the catwalk to show off the latest fashion collections from designers? In simple terms, well-known celebrities such as Gigi Hadid, Kendall Jenner, Adriana Lima, Cara Delavigne, and others walk the runway by introducing new low-priced stylish clothing that was designed by well-known or up-and-coming designers to influence a new line of clothing/accessories to retail stores that can create trends and boost purchase-power among audiences.
Fast fashion business developed in the late 1980s, with the market-based model by bridging the gap between creation and consumption by positioning this as a quick, low-cost, and disposable item.
Fast fashion retailers such as ZARA, H&M, Gap, UNIQLO,Louis Vuitton, Shein, and many more operate on a seasonal basis, with new outfits and accessories arriving in stores every four to six weeks, often more often than the rest of the fashion industry.
Furthermore, it varies by company; for example, ZARA receives new clothing supplies twice a week. In Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, The United Kingdom, and The United States, fast fashion is usually sold through physical stores or online auctions. Aside from that, the top nations for sourcing fast fashion clothing and accessories are India, Cambodia, Vietnam, Indonesia, and Turkey.
Fast Fashion became so ubiquitous and successful that you could buy runway clothes or upcoming trends apparel from popular brands such as H&M, Zara, GAP, and others in advance at a discounted price before they hit the stores. From creating mass production of new clothing lines, selling them at low prices, standardizing fashion styles in advance, earning tons of money out of it to making a trend in the future- fast fashion businesses benefit a lot.
Target Audiences
Fast fashion businesses usually cater to consumers who value fashion above all and can buy the product. Even persons with a middle-class income may afford and buy clothing from fast-fashion labels.
Fast Fashion Business Model
Before the 1980s, fast fashion businesses were product-driven, but by the late 1990s, they had evolved into a market-based business strategy. The fast-fashion industry, in particular, embraced two strategies: Management Style and the Quick Reaction Approach. Fast fashion management is used to meet people’s demands for aestheticism by wearing the newest and most fashionable clothing styles promptly. In the textile business, quick reaction methods are used to improve manufacturing techniques to remove time from the production system. Fast fashion is also linked to other market categories, such as premium and luxury, that use a supply chain acceleration and continuous supply approach.
What’s Unique About the Business Model of Fast Fashion Brands?
A company’s profit strategy is referred to as its business model. It specifies the items or services that the company intends to sell, as well as the target market it has identified and any expected costs. For both new and existing businesses, business models are crucial. They assist new and growing businesses in attracting capital, hiring top personnel, and motivating management and employees. Established companies should keep their business strategies up to date regularly, or they will miss out on future trends and issues. Investors use business plans to assess companies that they are considering investing in.
A business model is a high-level strategy for running a profitable business in a particular market. The value proposition is an important part of any business plan. This is a description of a company’s products or services and why customers or clients find them appealing, ideally articulated in a way that sets the product or service apart from its competitors.
Sales Revenue of Various Top Fast Fashion Brands
The business model for a new company should also include expected beginning costs and funding sources, the organization’s target client base, marketing strategy, a competitive analysis, and income and expense predictions. The strategy may also include ways for the company to collaborate with other well-established businesses.
Successful firms have business strategies that enable them to meet customer needs at a reasonable price over time. Many organizations update their business models over time to meet changing market conditions and demands. When considering a company as a potential investment, the investor should learn how it earns money. This entails investigating the company’s business model. The business model, however, may not reveal everything about a company’s prospects. However, an investor who comprehends the company strategy will be able to make more sense of the financial facts.
There are as many different kinds of business models as there are different kinds of businesses. Traditional business strategies include direct sales, franchising, advertising-based, and brick-and-mortar storefronts, for example. There are also hybrid models, such as companies that combine online retail with brick-and-mortar stores or with sports leagues like the NBA. Within these broad categories, each business plan is unique.
Fast fashion, as the name implies, manufactures and rapidly produces new apparel products for audiences before they emerge in offline stores. Many reputable brands, such as ZARA, Calvin Klein, Louis Vuitton, Gap, Forever 21, and many more, sell their latest designed clothing lines to audiences at a cheap rate in advance during fashion week, which is then sent to shops as a mass-production to fulfil revenues and trends. Furthermore, a fast-fashion business advantages a company in a variety of ways, including purchasing the latest products ahead of time that creates timely trends, designing and varied styles of clothing availability, low-cost production, reasonable costs, and quick profits.
FAQs
What is a fast-fashion business?
Fast Fashion is a term used to describe apparel and accessories that are created to follow current industry trends but produced with less expensive materials to keep the price low. Fast Fashion has been popularized among regular consumers by apparel companies such as H&M, Zara, and Forever 21 over the previous two decades. UNIQLO, GAP, Primark, and TopShop are among today’s biggest fast fashion brands. While these brands were formerly thought to be radical low-cost challengers, Misguided, Forever 21, Zaful, Boohoo, and Fashion Nova are now even cheaper and faster alternatives.
What are the topmost fast fashion businesses?
Zara, H&M Group, UNIQLO, GAP, Forever 21, Topshop, Esprit, Primark, Fashion Nova, and New Look are all major players in the fast-fashion sector. Many businesses are both merchants and manufacturers, while the actual production of garments is frequently outsourced.
How do they make money out of it?
Fast fashion can only make money if it sells a large number of items, which it does. They enable retailers to provide their customers with current product offerings regularly. The global fast fashion market was expected to be worth $35.8 billion, according to fashion industry figures. Every sector was shaken in 2020, and we all know why. Fast fashion is expected to be worth $31.4 billion in 2020, showing a –12% compound annual growth rate.
Archana Karthikeyan
