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Chanel Expands in China, Blazy Mania Drives Sales Surge

Financial Times Companies •
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Chanel is opening new boutiques in China as it leans on the buzz surrounding star designer Matthieu Blazy. The French luxury house, which launched Blazy’s first pieces in March, has seen a surge dubbed “Blazy mania.” The move follows a rebound in sales, with the brand reporting high single‑digit growth in the second half of 2025.

Sales climbed 2 percent organically to $19.3 bn last year, reversing a contraction that marked 2024. Operating profit rose 5 percent to $4.7 bn after a nearly one‑third dip in 2024. The rebound reflects a shift in Chinese consumer sentiment, where quarterly sales turned positive and momentum steadied early 2026 for both new and returning clients, boosting brand loyalty.

Chanel plans expansion, adding five beauty shops in Shanghai last year and a second private salon for top clients later this year. With only about 20 boutiques in China versus an average of 45 for rivals, the strategy hinges on capitalizing on the market’s long‑term potential while maintaining margin discipline and sustaining growth and customer engagement.

Chanel’s investment of $700 mn last year to acquire suppliers underscores its commitment to controlling the supply chain amid a broader luxury slowdown. Executives say that disciplined cost management has restored margins, positioning the house to capitalize on China’s recovery while safeguarding long‑term profitability for investors and maintaining brand integrity across all markets worldwide for stakeholders.