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  • Singapore Luxury Bag Auction Clears S$1.1 Million in First Liquidation Sale

    Singapore Luxury Bag Auction Clears S$1.1 Million in First Liquidation Sale

    Singapore sold all 337 seized designer handbags and accessories in its first money-laundering asset auction on Sunday night, raising more than S$1.1 million.

    A limited-edition Louis Vuitton x Yayoi Kusama yellow pumpkin bag led the sale at S$87,000, more than five times its upper pre-sale estimate of S$16,000.

    Auction house Hotlotz managed the online sale, which drew 42 last-minute bids on the Kusama piece alone during an extended 30-minute closing window. The platform applies a 20 percent buyer premium on hammer prices, which includes local goods and services tax for domestic buyers. Every lot found a buyer, clearing inventory that had been held in storage at Le Freeport.

    Premium Bids Defy Secondary Market Baselines

    Bidding across top labels consistently outpaced standard secondary market benchmarks for pre-owned luxury accessories. Chanel classic flap bags in caviar leather fetched S$13,000, running well above typical pre-owned transaction bands below S$10,000. A rhinestone-studded beige goatskin Chanel mini flap drew 28 bids before closing at S$15,000.

    Silver and diamond jewellery from Chrome Hearts generated similar competitive runs. A diamond double cross pendant sold for S$11,000, about ten times its initial estimate of S$1,000 to S$1,500. Most items from the American brand drew 30 or more individual bids before closing.

    Contrasting Demand Across Asset Classes

    The total clearance of high-end accessories highlights strong liquidity for portable luxury goods relative to large-ticket real estate. While consumers and resellers bid up authenticated bags and jewellery, a separate court-ordered auction on Sep 17 for luxury residential properties tied to the same illicit network failed to find a single buyer.

    For luxury resellers and secondary operators in Asia, the aggressive pricing shows how state-backed provenance and high media visibility can distort standard depreciation curves. Buyers paid top-tier premiums despite the assets being sold without standard boutique warranties or return policies.

    Liquidation Pipeline Through 2027

    The auction forms part of a broader recovery effort stemming from Singapore’s S$3 billion illicit financing crackdown. Police transferred the seized inventory to audit firm Deloitte in August last year to manage formal liquidation procedures. All net proceeds flow directly into the government’s consolidated fund to support state expenditure.

    Hotlotz is running a second auction of 286 fine jewellery pieces that remains open until Sep 27, with the two opening catalogues combined expected to yield between S$2.9 million and S$3.9 million. That sale will be followed by 13 additional online tranches scheduled through May 2027 to clear remaining forfeited goods.

  • Luxury Evermore Flags Cloned Chanel Serial Code Found 127 Times Across 36 Countries

    Luxury Evermore Flags Cloned Chanel Serial Code Found 127 Times Across 36 Countries

    Singapore resale platform Luxury Evermore found a single Chanel serial code repeated 127 times across 36 countries in its authentication database, exposing widespread counterfeit production.

    The code, 10218184, showed up on multiple bag models submitted to the firm’s free authentication screening tool, directly contradicting the brand’s rule that each code belongs to one specific bag.

    Database Flags Cloned Code

    Submissions came through Luxury Evermore’s consumer review service, which screens pre-owned luxury items to weed out fakes in the secondary market. Counterfeiters routinely duplicate legitimate serial strings because they lack access to internal luxury brand databases.

    “There are specific patterns and details on these tags that are very difficult to replicate,” Luxury Evermore founder Mingchuan Tian said. The company noted that while a single code match does not automatically prove a bag is fake, any pre-owned piece bearing the 10218184 string requires physical inspection before purchase.

    Shift to Microchip Authentication

    Chanel changed its authentication architecture in 2021, replacing physical authenticity cards and interior sticker tags with embedded microchips and metal plaques. Bags made before that transition remain heavily traded across Asian consignment platforms, leaving older serial numbers exposed to industrial-scale cloning.

    Secondary luxury platforms across Southeast Asia and East Asia face rising costs as authentication moves from simple serial checks to multi-point material inspections. As counterfeit operations replicate physical tags across multiple product lines, resale operators are tightening screening protocols on legacy inventory to protect platform credibility.

    Resellers tracking the 10218184 code are now screening pre-2021 inventory for matching batch anomalies across regional intake hubs.

  • Revamping Chanel: How Matthieu Blazys Unique Twist on Classics Fuels Brands Return to Growth

    Revamping Chanel: How Matthieu Blazys Unique Twist on Classics Fuels Brands Return to Growth

    The iconic Parisian fashion brand, Chanel, has seen an influx of new customers drawn to the reimagined versions of classic items by creative director Matthieu Blazy. The reinvented versions of the brand’s staple bags, shoes, and jackets have sparked a demand that exceeds supply, propelling the brand towards renewed growth.

    Revenue Growth and Increased Demand

    Chanel, a privately-held company, announced a 2% increase in revenue to $19.3 billion in 2025, marking a bounce back from a 4.3% decline in 2024. This period saw even premium fashion brands grappling with the bounds of demand following significant price hikes during a post-pandemic luxury resurgence.

    Blazy, who replaced Virginie Viard last year, has breathed new life into the brand with innovative designs like the relaxed leather “maxi flapbag” retailing at $8500, and bright, fringed renditions of the classic Chanel tweed jacket.

    Chanel’s CEO, Leena Nair, noted a creative momentum across all their business activities in 2025 and attributed the sales rebound to the investments made the previous year. The company also reported an increase in operating profit by 5% to reach $4.7 billion, although this fell short of its figures between 2021 and 2023.

    When Blazy’s debut collection hit stores in March, it sparked a buying frenzy for new handbags, two-tone pumps in mint green and black sold at $1450, and multicoloured tweed jackets. Simon Longland, Director of Fashion Buying at the prestigious Harrods in London, described the recruitment of new clients – those who had never previously bought Chanel – as phenomenal.

    Regional Growth and Future Plans

    Despite slower growth than Hermès and a slight decline compared to LVMH’s fashion and leather goods division, Chanel still saw a significant surge in sales in the US market, with a 7.2% increase in the Americas region. However, sales in Asia-Pacific, Chanel’s largest region by sales, declined slightly by 0.8%, while Europe saw a growth of 2.5%.

    In 2025, Chanel increased prices by 3% overall and 2% for fashion products, with similar hikes planned for this year. CFO Philippe Blondiaux reported that Chanel’s business in the Middle East, accounting for about 4% of revenue, remained resilient despite the war in Iran.

    After opening 41 stores in 2025, the brand intends to open an additional 30 stores this year, including nine fashion boutiques, with new locations in Boca Raton, Florida, as well as Palo Alto and San Diego in California.

    Questions & Answers

    What contributed to Chanel’s revenue growth in 2025?
    Chanel’s increased revenue in 2025 can largely be attributed to the innovative designs of new creative director Matthieu Blazy, which led to a surge in demand for the brand’s products.

    How did Chanel fare compared to other luxury brands in 2025?
    Though Chanel experienced slower growth than Hermès, it outperformed LVMH’s fashion and leather goods division and saw strong sales growth in the Americas region.

    What are Chanel’s plans for 2026?
    Chanel plans to continue expanding by opening 30 more stores, including nine fashion boutiques, in locations such as Boca Raton, Florida, Palo Alto, and San Diego, California. The brand also intends to increase prices by a similar rate as in the previous year.

  • Matthieu Blazys Fresh Spin Sparks Chanels Comeback in Luxury Market

    Matthieu Blazys Fresh Spin Sparks Chanels Comeback in Luxury Market

    The Paris-based luxury fashion brand Chanel has experienced a significant surge in demand, piquing the interest of first-time buyers. This increase has been attributed to the reimagined versions of classic items such as bags, shoes, and jackets by the brand’s creative director, Matthieu Blazy. As a result, Chanel’s demand has exceeded supply, signaling a rebound in growth.

    Revamping Classics Fuels Growth

    Chanel recently reported a 2% increase in currency-adjusted revenues for 2025, amounting to US$19.3 billion. The brand experienced a 4.3% reduction in revenue the previous year, a period when high-end fashion labels struggled with demand following significant price increases in the wake of a post-pandemic luxury boom.

    Last year, Matthieu Blazy assumed the role of creative director, succeeding Virginie Viard. His maiden collection, launched in October, infused fresh life into the brand with innovative designs. Notable among these are the slouchy leather maxi flap bag retailing for $8,500, and brightly colored, frayed interpretations of the traditional Chanel tweed jacket.

    Chanel’s CEO, Leena Nair, attributes the brand’s recent success to “a creative momentum across all our business activities,” further noting that investments made in the previous year laid the groundwork for this sales rebound. The brand’s operating profit also experienced growth, recording a 5% increase to hit $4.7 billion.

    New Trends Attracting New Customers

    The brand’s revamped collection has been well-received by consumers, resulting in a substantial increase in new clientele for Chanel. High-demand pieces such as new handbags, mint green and black two-tone pumps (priced at $1,450), and multicolored tweed jackets are flying off the shelves.

    As for the brand’s performance relative to its competitors, Chanel’s growth rate fell short of Hermès at 9.8%, but outperformed LVMH’s fashion and leather goods division, which recorded a 5% decline.

    America, despite enduring tariffs, contributed the most to Chanel’s growth, with a sales increase of 7.2% in currency-adjusted terms in the Americas region. Meanwhile, sales in the Asia-Pacific region — Chanel’s largest market — fell by 0.8%, and Europe recorded a growth of 2.5%.

    Chanel has plans to increase prices by 3% overall and 2% for fashion products this year, according to CFO Philippe Blondiaux. He also noted the Middle East’s market resilience, which accounts for approximately 4% of the brand’s revenue, despite the ongoing conflict in Iran.

    The company plans to continue expanding its retail presence, intending to launch 30 new stores this year, including nine fashion boutiques in locations such as Boca Raton, Florida, and Palo Alto and San Diego in California.

    Questions & Answers

    What has been the impact of Matthieu Blazy’s designs on Chanel’s performance?

    Blazy’s redesigns of classic Chanel pieces have resulted in increased demand, attracting many first-time buyers and contributing to significant growth for the brand.

    How does Chanel’s recent growth compare with that of other luxury fashion brands?

    Chanel’s growth rate in 2025 was slower than that of Hermès but exceeded the growth rate of LVMH’s fashion and leather goods division.

    What are Chanel’s future plans for expansion?

    Chanel plans to open thirty new stores this year, including nine fashion boutiques in locations such as Boca Raton, Florida, and Palo Alto and San Diego in California.

  • Chanel Unveils World’s First Complete ‘Chanel Ecosystem’ in Newly Expanded Shanghai Flagship Store at Plaza 66

    Chanel Unveils World’s First Complete ‘Chanel Ecosystem’ in Newly Expanded Shanghai Flagship Store at Plaza 66

    After an extensive 18-month refurbishment, Chanel has officially unveiled its renovated flagship boutique in Shanghai’s Plaza 66. The three-story space, which is now twice its original size at 2973 square meters, is the first of its kind to encompass the brand’s entire ‘ecosystem.’

    Embracing the World of Chanel

    The newly expanded location presents an array of Chanel’s luxury offerings, ranging from fashion and accessories to watches, fine jewelry, beauty products, and fragrances. It also includes Les Ateliers, the house’s dedicated repair and alteration service, along with the exclusive Les Salons Prive.

    Peter Marino, who has a long-standing collaborative relationship with the brand, was the mastermind behind the boutique’s redesign. The refreshed layout incorporates sophisticated white facades, black-framed vertical panels resembling pleated fabric, and an abundance of natural light pouring in from the mall’s glass ceiling.

    Distinctive Spaces for Distinct Collections

    Chanel’s latest handbags and accessories take center stage on the ground floor. In a separate black-and-gold section, customers can peruse an exquisite selection of watches and fine jewelry, including the Coco Crush and No 5 collections, and J12 and Premiere watches.

    The boutique reserves a VIP room for showcasing three patrimoine high jewelry pieces, set against a backdrop of camellia coromandel screens and Regency-era mirrors. This decor pays homage to Chanel’s historical ties with the cinema industry.

    The second floor introduces visitors to three salons, each distinguished by a unique color theme. The first salon features Chanel’s Cruise 2026 collection, while a more private second salon showcases the house’s signature black-and-white palette. A large fitting room for hosting guests connects to this space. The third salon, which houses an Arnold Armand ‘Mali’ table, leads to an elevator tunnel adorned with gold tweed-like walls.

    Additional Amenities and Services

    On the lower ground floor, customers can find the Shoe Salon, offering a variety of Coco Neige and carryover styles. This area, designed with floor-to-ceiling shelving and plush wool carpets, includes two adjoining rooms.

    The mall’s third floor plays host to the Les Salons Prive, a dedicated area for serving VIP customers. Adjacent to this area are the brand’s beauty and fragrance boutique and Les Ateliers, Chanel’s repair and alteration service.

    In a statement, Bruno Pavlovsky, President of Fashion at Chanel, said, “This new space represents the Chanel universe. We are not merely striving to build the biggest boutique, but to create the optimal environment for the ultimate experience.”

    Questions & Answers

    What does the redesigned Chanel boutique offer?
    The newly expanded boutique features the complete Chanel ‘ecosystem,’ ranging from fashion and accessories to watches, fine jewelry, beauty and fragrances. It also includes Les Ateliers and Les Salons Prive.

    Who designed the renovated Chanel boutique at Plaza 66?
    Peter Marino, a longtime collaborator with Chanel, redesigned the boutique.

    What is Chanel’s objective with the redesigned boutique?
    Chanel is not focused on building the largest boutique, but rather aims to create the perfect environment for an unparalleled customer experience.

  • Ho Chi Minh City Ceo Arrested: Accused Of $570,200 Counterfeit Perfume Operation

    Ho Chi Minh City Ceo Arrested: Accused Of $570,200 Counterfeit Perfume Operation

    In a recent turn of events, a CEO and his spouse based in Ho Chi Minh City (HCMC) have been apprehended by the police on the grounds of allegedly manufacturing and marketing tens of thousands of fraudulent perfume bottles. These counterfeit products bore the labels of well-known luxury brands such as Chanel, Gucci, and Dior, among others. The illicit profits gathered from this illegal enterprise are estimated to be around VND15 billion (US$570,200).

    The Masterminds and Their Accomplices

    The individuals caught in this scandal are Nguyen Ngoc Tho, the CEO of Nguyen Huong, and his wife, Truong Thi Mai Hien. Along with them, nine other people were also taken into custody by the HCMC police on charges related to the production and sale of fraudulent goods.

    The couple has been identified by the authorities as the key instigators behind this significant counterfeit perfume production ring.

    The Raid and Confiscation

    During a recent operation at the company’s production site within the city, the law enforcement officers seized 20,000 imitation perfume bottles carrying the tags of elite luxury brands. The authorities also confiscated various perfume-making equipment and tools used in the fraudulent operations.

    The Counterfeit Scheme

    The authorities have accused the couple of initiating this scheme since the beginning of last year. Apparently, Tho observed a surge in perfume demand and started researching and creating formulas for counterfeit perfumes online.

    Together with his wife, Tho procured machinery, raw materials, and perfume bottles. They rented a production facility and mainly hired family members to blend, fill, label, and package the fake perfumes.

    They promoted these spurious products on social media platforms and distributed them in vast quantities across numerous provinces.

    Questions & Answers

    What are the legal implications of the case?
    Given the scope of the fraudulent operation and the brand value of the companies affected, significant legal implications can be anticipated. This includes potential jail time, hefty fines, and possible lawsuits from the affected brands.

    What was the primary market for these counterfeit products?
    The couple leveraged the internet and social media platforms to market these counterfeit products, targeting customers in several provinces.

    Who were involved in the production process of these counterfeit perfumes?
    The CEO and his wife led the operation, hiring mainly family members in their production facility to create the counterfeit perfumes.

  • Vietnamese Jewelry Store Fined For Selling Counterfeit Chanel Items Amidst Gold Price Surge

    Vietnamese Jewelry Store Fined For Selling Counterfeit Chanel Items Amidst Gold Price Surge

    In central Vietnam, a gold and jewelry store has been hit with a substantial fine of VND55 million (US$2,088.08) and has been instructed to obliterate its existing stock for engaging in the sale of falsified Chanel brand jewelry.

    Counterfeit Jewelry Seized

    The Market Management Department of Gia Lai Province reported that they recently discovered bracelets with the logo of Chanel, a renowned French fashion brand that has registered for protection in Vietnam, in the store. The provincial authority refrained from revealing the name of the establishment.

    The estimated total value of the seized goods is around VND35.7 million. The authority highlighted that all the seized jewelry items were counterfeit and lacked the requisite documentation to verify the origin.

    Surprise Raid and Future Plans

    These surprising findings resulted from an unexpected raid. In the aftermath of this event, the department has announced plans to maintain strict vigilance and continue inspecting other gold enterprises to prevent any further violations of intellectual property rights.

    Gold Prices Reach Record High

    In a related development, the prices of Vietnamese gold have witnessed a significant surge of 76% this year, reaching an all-time high of VND148 million per tael (equivalent to 37.5 grams or 1.2 ounces).

    Questions & Answers

    What was the penalty imposed on the jewelry store for selling counterfeit Chanel brand jewelry?
    The jewelry store in central Vietnam was fined VND55 million (US$2,088.08) and was ordered to destroy its existing stock.

    What did the Market Management Department of Gia Lai Province discover during their raid?
    During their surprise raid, the Market Management Department of Gia Lai Province discovered counterfeit Chanel brand bracelets being sold in the store.

    What are the future plans of the Market Management Department of Gia Lai Province?
    Following the discovery of counterfeit jewelry, the department plans to continue monitoring gold businesses to prevent any violations of intellectual property rights.

  • Chanel Unveils Signature Duplex Boutique At Seoul’s Incheon Airport, Partners With Shilla Duty Free

    Chanel Unveils Signature Duplex Boutique At Seoul’s Incheon Airport, Partners With Shilla Duty Free

    Chanel, the renowned French luxury brand, has recently launched a duplex store in partnership with Shilla Duty Free at Seoul’s Incheon International Airport. This store, situated in Terminal 2, is a reflection of the brand’s signature style, featuring a colour scheme of black and white, adorned with touches of modern art.

    At this duplex store, customers can look forward to browsing through Chanel’s vast collection. The offerings include ready-to-wear clothing, footwear, and accessories. The ground floor is dedicated to showcasing iconic Chanel bags as well as the brand’s newest products, like the Chanel 25 handbag.

    A representative from Shilla Duty Free expressed their optimism regarding the new store. They anticipate the Chanel duplex boutique will become a significant attraction at Incheon International Airport due to its size, unique interior design, comprehensive product range, and superior customer service.

    Chanel is not the only luxury brand under Shilla Duty Free’s umbrella. Other high-end names, such as Tiffany & Co, Omega, and Dior, are also managed by Shilla Duty Free, with plans for these brands to open stores next year.

    In related news, Chanel has also taken a significant step towards sustainability. The company has set up Nevold, a separate division that focuses exclusively on waste management and recycling.

    Despite challenges faced by the luxury sector, resulting in a 4.3% decrease in revenues to $18.7 billion for the year ending on December 31, Chanel remains committed to providing high-quality luxury products and outstanding customer experiences.

    Questions & Answers

    What is unique about Chanel’s new duplex store at Incheon International Airport?
    The store stands out for its size, stylish interior design inspired by Chanel’s brand colours of black and white, its extensive range of products, and its outstanding customer service.

    What can customers expect to find in this new Chanel store?
    Customers can explore a wide selection of Chanel’s collection including ready-to-wear clothing, footwear, accessories, and iconic bags like the Chanel 25 handbag.

    What other luxury brands are operated by Shilla Duty Free?
    Shilla Duty Free also operates other high-end brands such as Tiffany & Co, Omega, and Dior, which are all planning to open stores next year.

  • Chanel profit tumbles as global sales slow down

    Chanel profit tumbles as global sales slow down

    Despite witnessing a 4.3% slide in sales last year, French luxury conglomerate Chanel has committed to maintaining its heightened capital expenditure this year. The persistence of market instability, especially in Asia and the U.S., has not deterred the company from supporting its worldwide expansion plans.

    Investments and Expansions

    Chanel announced that it would continue its capital investment at the $1.8 billion mark, representing a 43% increase from the previous year, to facilitate global growth. The expansion includes 48 new store launches scheduled for this year. About half of these planned openings will occur in China and the U.S., while additional locations are set for India, Mexico, and Canada. Out of these new stores, only six will be dedicated to fashion. The remaining stores will focus on beauty, jewelry, and other categories.

    Financial Performance

    The fiscal year ending in December saw Chanel reporting revenues of $18.7 billion. However, there was a 30% decrease in operating profit. The Asia-Pacific region was notably impacted, registering a 9.3% drop in sales. North and South America also experienced a decline of 4.3%, while Europe had a modest increase of 1.2%.

    The group’s net profit decreased by 28.2% to $3.4 billion last year. This decline was attributed to difficult market conditions in certain regions.

    Market Uncertainties

    Philippe Blondiaux, the group’s Chief Financial Officer, recognized uncertainties in the market outlook, particularly concerning China and U.S. tariff policies. He noted that while there were “positive signs of stabilization” in China and Hong Kong, it was premature to determine whether these regions were on the road to recovery. He further described the ongoing tariff discussions in the U.S. as “extremely volatile”.

    Chanel increased its prices by approximately 3% last year to counter inflation. Blondiaux stated that further adjustments might be required, especially in the jewelry sector where gold prices continue to escalate.

    Looking Forward

    Despite the challenging macroeconomic and geopolitical climate, Chanel’s global CEO Leena Nair remains optimistic. She stated that while these conditions have impacted sales in some markets, the company continues to focus on long-term investments.

    Last year, Chanel appointed Matthieu Blazy as its creative director. Although there have been rumors regarding an expansion into menswear, the company clarified that there are presently no plans to venture into that category.

    Questions & Answers

    What is Chanel’s strategy in terms of capital investment?
    Chanel plans to maintain its $1.8 billion capital investment to support its global expansion.

    How did Chanel’s financial performance fare in the previous fiscal year?
    For the fiscal year ending in December, Chanel reported a revenue of $18.7 billion. However, both operating profit and net profit saw significant declines, by 30% and 28.2% respectively.

    What are Chanel’s expansion plans for the current year?
    Chanel intends to open 48 new stores across various countries, including China, the U.S., India, Mexico, and Canada. The majority of these stores will be dedicated to beauty, jewelry, and other categories.

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  • Chanel Korea fined for excessive collection of personal information

    Chanel Korea fined for excessive collection of personal information

    Chanel Korea has been fined for requesting names and contact numbers from waiting customers and their companions.

    The Personal Information Protection Commission announced on Thursday that it had decided to impose a fine of $2.761 on Chanel Korea for violating the Personal Information Protection Act during its 19th plenary meeting.

    Chanel Korea faced criticism for excessive collection of personal information when its boutique in a Seoul department store asked waiting customers and their companions for their names, contact numbers, birthdates, and addresses.

    Chanel Korea argued that it collected these details to prevent proxy purchasing since customers were only allowed to purchase a limited number of items. However, the company received widespread criticism, with people stating that it treated customers as potential criminals.

    The commission concluded that Chanel Korea’s actions violated the Personal Information Protection Act, and the measures taken went beyond the scope of their original purpose of managing waiting customers.

    Additionally, the commission noted that denying services to customers who refused to comply with personal information collection was also considered a violation of related laws.

    An official from the commission stated, “Businesses should collect the minimum personal information needed for their services. This case serves as a reminder that businesses must not refuse services to customers on the grounds that they refused to agree to the collection of personal information.”

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  • Fake Chanel perfume seller fined

    Fake Chanel perfume seller fined

    A shop in the Central Highlands has been fined VND50.5 million (US$2,100) for selling counterfeit Chanel and Lancome perfumes and sunscreen through Facebook livestream.

    The shop in Pleiku, Gia Lai Province, was busted during a livestream session, the local police said.

    They had been monitoring the shop for some time, and during the raid found 300 bottles of perfumes labeled Chanel and 118 purporting to be Lancome besides 204 sunscreen tubes with the latter’s label.

    The police checked all the documents the shop provided and established that the products were fake.

    They also found 440 breath refresher bottles without invoices.

    The shop was fined VND50.5 million for selling fake goods, violating intellectual property rights and trading cosmetics of unknown origin.

    All the fakes were confiscated and will be destroyed.

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  • Chanel takes over Capitol Centre’s massive retail space, Singapore

    Chanel takes over Capitol Centre’s massive retail space, Singapore

    Capitol Centre, located on 5-19 Jardine’s Bazaar in Causeway Bay, Hong Kong, is one of the most coveted locations for luxury retail brands. Victoria’s Secret once leased the prime location, but the lingerie brand pulled out early, leaving the 50,000 square-foot space unoccupied. However, after the opening of the Mainland and Hong Kong border, the market has seen a surge in demand for retail space, and CHANEL has now taken over the lease of Capitol Centre’s massive retail space.

    The lease signed last month by CHANEL covers the ground floor, basement, and the advertisement space on the exterior of the building, totalling approximately 19,000 square feet. The monthly rent for the space is estimated to be over HK$3 million, or roughly HK$158 per square foot, making it the largest lease transaction since the border reopening and the largest retail lease in Hong Kong in the past three years since the outbreak of COVID-19.

    The lease period is three years, from mid-May 2023 to May 2026, with an option for renewal. The annual rental cost for the space is over HK$36 million, adding up to a total of over HK$1.08 billion for the three-year lease period.

    Capitol Centre has seen many tenants over the past 20 years, including major brands such as Watsons, Fairwood, and Giordano. In 2010, the U.S. clothing chain Forever 21 secured the space with a rental amount of HK$10.8 million per month, or HKD 211 per square foot, making it the most expensive retail space in Hong Kong at the time. The rental amount was later increased to HK$13.78 million per month, or HK$269 per square foot.

    In November 2016, Forever 21 announced that it would vacate the Causeway Bay store in August 2017, and Victoria’s Secret took over the space for a rental amount of around HK$7 million per month, a significant decrease from Forever 21’s rental amount. However, Victoria’s Secret was hit by the COVID-19 pandemic and vacated the space in May 2020, with more than seven years left on its lease. After Victoria’s Secret’s departure, the space remained vacant until last year when Market Place, a supermarket chain, rented the basement for around HK$600,000 per month, or HK$86 per square foot.

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  • Chanel faces fair-trade hurdles in South Korea

    Chanel faces fair-trade hurdles in South Korea

    French luxury label Chanel is under investigation for alleged breaches of South Korea’s Free Trade Act.

    The Korean Free Trade Commission (KFTC) is looking into allegations that the firm is placing unfair restrictions on duty-free operators distributing its products to local retailers. Korean law has recently relaxed restrictions on how duty-free companies can sell and distribute stock following the heavy impact of the coronavirus pandemic on the industry. The previous regulations restricted duty-free companies from passing stock and inventory to local retailers.

    The French group however is refusing to allow its products to be sold at potentially reduced prices.

    “If a firm does not allow a business partner to sell its products at a certain price and threatens to cut supplies or impose a penalty in any future business relations, this is a contravention of the Fair Trade Act,” a KFTC official said.

    “If Chanel violates the act, then we can bring a case for possible judicial review and apply administrative actions, accordingly, from imposing fines through to issuing a correction order or even prosecuting the brand, in the worst-case scenario.”

    Customer levels have reduced 85.7 percent since the outbreak, with sales halving from KRW2.17 trillion (US$1.76 billion) down to KRW1.08 trillion ($885 million).

  • Chanel Not For Sale

    Chanel Not For Sale

    Luxury fashion house Chanel has dispelled rumours it was planning a stock market listing after posting higher annual sales and profits on Monday.

    The company also announced it is not for sale.

    The French fashion label, owned by the Wertheimer family, said sales rose to nearly $11.1 billion (A$21.29 billion) in the year under the late designer Karl Lagerfeld who passed away last February.

    This is only the second time the luxury brand has publicly announced its results in its 109-year history.

    According to a CNBC report, Chanel’s chief financial officer Philippe Blondiaux had said the company was not for sale and has denied IPO claims.

    “We’ve got to live with the fact that we are one of the most desirable brands in the market,” Blondiaux said. “These rumours will unfortunately keep coming back on a regular basis.”

    “Chanel needs to remain independent, in order to have the freedom to make choices that go against the grain, such as no longer using exotic animal skins, or by harmonising prices.”

    The fashion house, which was founded by Coco Chanel in 1910, announced it saw a 12.5 per cent increase in its 2018 revenues to $11.12 billion, while net profits rose 16.4 per cent to $2.17 billion.

    The company has seen growth across all of its markets last year, led by Asia Pacific where sales increased 19.9 per cent. Sales in Europe rose 7.8 per cent and in the Americas 7.4 per cent.

    The report indicated strong demand from wealthy Chinese consumers both in Europe and overseas has fuelled higher sales and profits in the luxury industry, in spite of a trade dispute between the United States and China.

    Virginie Viard took over as Chanel’s new creative chief and delivered her first solo collection last month for the brand.

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  • Chanel Opens Flagship Store in Seoul

    Chanel Opens Flagship Store in Seoul

    A new Chanel South Korea flagship has opened in Seoul.

    The Cheongdam-dong boutique opening provided the opportunity for the brand to unveil its latest ready-to-wear collection alongside its capsule accessories collaboration with musician Pharrell Williams, who performed at the event.

    The capsule collection is a bright combination of pop music and street-art motifs, and is currently selling at the new Seoul store, pending global release on April 4.

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