The house of Chanel is undertaking a worldwide review of its activities from couture to cosmetics and perfumes following both recent turbulence in the luxury products markets and the departure of major figures from the group. Under the restructuring it is expected Chanel will recruit a new generation of directors and managers to develop its business under new and demanding market conditions.
Part of the process started last year with the transfer of group management to the US where the Wertheimer family which has owned Chanel since 1954 now lives. However, the focus of the majority of the development and production of its cosmetic lines remains in France as does the design of the fashion collections by Karl Lagerfeld. Last January, Maureen Chiquet was promoted from head of the US subsidiary to a new post as head of the group worldwide. Based in New York she is now responsible for coordination and strategy involving the presidents of the five world regions and for working with the three international presidents based in Paris, including Andrea Avack for perfumes and cosmetics. Internal management balances are expected to change further following the audit now underway with conclusions and recommendations being reached within a few weeks from now.
The generational changes at the head of Chanel meanwhile have affected the make-up sector. Dominique Moncourtois, international director of make-up creation, has left after 38 years with the company, to be replaced by the Belgian Peter Philips. Marie-Louise de Clermont Tonnerre, head of external relations, has been succeeded by Valerie Duport.
Part of the problem for observers in estimating the extent of the shake-up within the company is its traditional secrecy which extends even to the amount of annual sales, estimated at over €2.5bn. However, one factor that appears more or less clear is that the earlier departure from Chanel of major figures is proving as difficult to tackle as coping with changing market conditions. Observers of the company in Paris single out as especially critical the departure last autumn of its artistic director, Jacques Helleu after 50 years in post. M Helleu operated in the perfumes, clocks and watches and jewellery areas and in 1968 was the inspiration behind the recruitment of Catherine Deneuve to embody the essence of Chanel No 5. So far no-one has been found to replace him.