Chanel Eases Price Hikes as Beauty Sales Face Global Headwinds
Chanel is moderating its aggressive pricing strategy amid a 4.3% decline in global sales, with its beauty and fragrance divisions experiencing uneven performance across key markets. The post Chanel Eases Price Hikes as Beauty Sales Face Global Headwinds appeared first on Global Cosmetics News.
THE WHAT? Chanel is moderating its aggressive pricing strategy amid a 4.3% decline in global sales, with its beauty and fragrance divisions experiencing uneven performance across key markets.
THE DETAILS In 2024, Chanel’s total revenues fell to US$18.7 billion, accompanied by a 30% drop in operating profit to US$4.5 billion. The Asia-Pacific region, a significant market for Chanel, saw a 7.1% decrease in sales, while Europe experienced modest growth. Despite these challenges, the fragrance and beauty segment showed resilience, driven by makeup and skincare. However, the company is taking a more cautious stance on price hikes, particularly in the U.S., where economic uncertainty and potential tariffs are influencing consumer behavior. Chanel plans to maintain its capital expenditure at US$1.8 billion in 2025, focusing on supply chain integration and expanding its boutique presence in markets such as India, Mexico, and Canada.
THE WHY? The move to pull back on price increases reflects Chanel’s awareness of shifting global consumer sentiment and affordability concerns. With increased investment in operations and geographic expansion, the brand aims to protect and grow its beauty business in a softening luxury landscape.
Source: Reuters
The post Chanel Eases Price Hikes as Beauty Sales Face Global Headwinds appeared first on Global Cosmetics News.
