Chanel is the most idolized name in fashion, and consequently the one least likely to be looked at objectively. It's not just the advertising dollars, it's Karl Lagerfeld's personal celebrity and the loyalty he seems to inspire among critics and editors. I've long felt that his creations are a special form of ugliness - perfect for rotund little old ladies upholstered in tweed, the kiss of death for anyone else - but his shows are guaranteed a rapturous reception in the press.
Some other people seem to be coming around to my point of view. It's slow, for sure, but then big, famous houses don't become irrelevant overnight. It takes time, and Pierre Cardin is the perfect example: long after his name had been licensed into oblivion and the creative spark had died, he continued to draw favorable reviews from WWD, among others. It was only in the late 80s and 90s, when the degeneracy of his brand was apparent to all, that it became acceptable to say out loud what everyone had known for years: Cardin was over.
Chanel doesn't have a licensing problem. It's problem is that the current sketcher-in-chief, Karl Lagerfeld, is mentally stuck in the 80s and no longer fresh. In some ways, the fashion system knows this: think of the rumors which surfaced earlier this year that Lagerfeld would be replaced by Alber Elbaz of Lanvin, for example. Consciously or not, the realization is sinking in that it's time for a change.
This opinion was articulated by an academic named Mark Ritson, who - not coincidentally - comes from the marketing world, and who is therefore at liberty to think and write freely in a way that fashion people are not. In a tremendous article for Marketing Week, he writes that, according to a marketing consultancy, the Chanel brand lost 11% of its value last year. This in contrast to Louis Vuitton and Hermes, both of which gained.
Ritson argues that Chanel missed the boat in Asia by not entering the Chinese market until many years after its competitors, and that in London it is playing catch up to Louis Vuitton, which recently opened a lavish new store there. To that I might add the online space: most brands by now offer some form of ecommerce on their websites. Not Chanel - as far as I can tell, its online strategy hasn't advanced past the year 2000.
Ritson's most stinging criticism is a very simple one: the brand has simply gotten boring. He writes, "Its shop windows lack inspiration, the new collections are a little too derivative and the clientele looks older to me on each visit. Whisper very softly, but I think Chanel is getting dusty."
I don't care about China, but this is important. Lagerfeld has brought Chanel full circle, back to where he found it. Once again, it is repetitive, mired in the past and undeniably dowdy.
I think that Chanel knows this too: recently, prices for their handbags were raised by 30%. Why would they do this? Perhaps because the brand's managers are afraid of becoming aspirational. For luxury to remain luxurious, it must be kept out of the hands of the masses.