Chanel plans to keep investing in China despite demand downturn
Luxury brands face weak demand in the country amid an economic slowdown and property market crisis
Chanel, a luxury brand, intends to continue investing in China despite the downturn affecting the country's economy and property market. In an interview for the upcoming episode of The David Rubenstein Show: Peer to Peer Conversations, Chanel's CEO Leena Nair emphasized that China remains an important market for the brand, as its clientele appreciates sophistication and refinement.
Chanel recently renovated its Plaza 66 boutique in Shanghai, designed by architect Peter Marino, who is also known for his work with LVMH Moët Hennessy Louis Vuitton. Luxury brands have experienced a decline in demand in China due to an economic slowdown, a property market crisis, and a crackdown on conspicuous consumption, which has disproportionately affected the wealthy.
Nevertheless, Chanel's comparable revenue in the first half of the year rose by about 16 percent, with growth observed across all regions, including China. The privately held company reported a 1.8 percent sales increase to US$19.3 billion in 2025, with the China region accounting for approximately 48 percent of revenue.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
