Chanel SWOT Analysis

Published by MBA Skool Team, Last Updated: April 26, 2020

Chanel SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Chanel, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

Chanel is one of the leading brands in the lifestyle and retail sector. The article below lists the Chanel SWOT and includes its target market, segmentation, positioning & USP.

SWOT Analysis of Chanel

For Chanel, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Chanel Strengths

The strengths of Chanel looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value.

A list of strengths is mostly the starting point in starting SWOT analysis. Below are the Strengths in the SWOT Analysis of Chanel :

1. Chanel are pioneers of prêt-a-porter of ready to wear clothing

2. Chanel S.A. operates some 300+ Chanel boutiques worldwide

3. Highly established brand worldwide since many years

4. Classic and timeless designs are a major part of their collection

5. Chanel company have about 1200+ employees

6. The clothes offered are comfortable with the perfect style for rich urban customers

7. Strong brand equity and loyalty of Chanel

8.They are among the market leaders in the premium clothing segment

9. Chanel also has a wide range of products like perfumes, watches, skin care products etc

Chanel Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Chanel SWOT Analysis:

1. Stiff competition from other premium brands means market share growth for Chanel is limited

2.Despite good brand visibility, brand switching is high

Chanel Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Chanel SWOT Analysis:

1. Online sale and E-marketing gaining a lot of importance can be tapped by Chanel

2. Emerging markets and various expansions and acquisitions abroad

3. Product innovation and takeovers

4. Tie-ups with leading hotel chains and fashion houses to boost the brand

Chanel Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Chanel are as mentioned:

1. Competitors in the same business providing similar kind of clothes and accessories can reduce Chanel's market share

2. Economic slowdown and downturn also has an effect on production

3. Counterfeits and price wars are also a viable threat

4.Other cheaper and lower brands trying to copy their timeless styles and selling at much affordable rates

Similar to Chanel

1. Gucci

2. Christian Dior

3. Burberry

4. Ralph Lauren

5. Prada

6. Zara

7. Louis Vuitton

8. Hugo Boss

9. Hermes International

10. Versace

11. Valentino S.P.A

Hence this concludes the Chanel SWOT analysis.

Continue reading more about the brand/company.

About Chanel

Chanel Overview
Parent Company



Apparel and Accessories


Lifestyle and Retail

Tagline/ Slogan

Be your own hero; There’s no thrill like discovery; Explore your world; Keep it classy


Chanel is a leaders in haute couture and ready to wear clothes

Chanel STP

Men and women who practice an active lifestyle and are interested in high fashion

Target Market

Urban men and women from higher affluent class


Wealthy, Stylish and well balanced French fashion for those who have a versatile and different attitude

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing analysis of more brands and companies similar to Chanel. This section covers SWOT Analysis along with Segmentation, Target Market, Positioning & USP of more than 2000 brands from over 20 industry sectors.

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