Chanel S.A. (French: [ʃanɛl], English: /ʃəˈnɛl/) is the French house of high fashion that specializes in haute couture and ready-to-wear clothes, luxury goods, and fashion accessories.^[1][2] In her youth, the couturière Gabrielle Bonheur Chanel gained the soubriquet “Coco” in the course of her career as a chanteuse de café in provincial France. As a fashion designer, Coco Chanel catered to a woman’s taste for elegance in dress, with blouses and suits, trousers and dresses, and jewellry (gemstone and bijouterie) of simple design, that replaced the opulent, over-designed, and constrictive clothes and accessories of the 19th-century fashion. Historically, the House of Chanel is most famous for the stylistically versatile “little black dress”, the perfume No. 5 de Chanel, and the Chanel Suit. As a business enterprise, Chanel S.A. is a privately held company owned by Alain Wertheimer and Gerard Wertheimer, grandsons of Pierre Wertheimer, an early business partner of Coco Chanel. Commercially, the brands of the House of Chanel have been personified by fashion models and actresses, by women such as Inès de la Fressange, Catherine Deneuve, Carole Bouquet, Vanessa Paradis, Nicole Kidman, Anna Mouglalis, Audrey Tautou, Keira Knightley, and Marilyn Monroe, who epitomise the independent, self-confident Chanel Girl.^[3]

As a couturière, the milliner and dressmaker Gabrielle Bonheur Chanel presented and established new clothing and costume designs that promoted women from being male objects of conspicuous consumption and sexual display, to being persons who dressed for themselves, in comfortable clothes that allowed free movement; as such, the practical application of jersey fabric to the construction of clothes was one technical innovation that made the garments popular and affordable.^[4] Chanel revolutionized fashion — haute couture and prêt-à-porter — by replacing the structured-silhouette fashions, based upon the corset and the bodice, with garments of simple design that were cut and confected to be functional, and to aesthetically enhance the woman’s figure, in action and in repose.

In the 1920s, the simple-line designs of Chanel couture made popular the “flat-chested” fashions that were the opposite of the hourglass-figure achieved by the restrictively structured and ornate fashions of the late 19th century — the Belle Époque of France (ca. 1890–1914), and the British Edwardian Era (ca. 1901–1919). Besides comfortable wear, Chanel’s stylish and functional clothes were complemented by the suppleness of jersey fabric, which allowed the modern, 20th-century-woman to live and practice an active style of life; colour-wise, the fashion designer Coco Chanel used traditionally masculine colours, such as grey and navy blue, to connote boldness of character.^[5][6]

The clothes of the House of Chanel also are known for quilted fabric and leather trimmings; the quilted construction of the garment reinforces the fabric, the design, and the finish, which produce a garment confected to maintain its form and function in every circumstance. The notable example of such haute couture techniques is the woolen Chanel Suit — a knee-length skirt and a cardigan-style jacket, trimmed and decorated with black embroidery and gold-coloured buttons. The complementary accessories are two-tone pump shoes and jewellry (gemstone and bijouterie), usually a necklace of pearls, and a leather handbag. Moreover, the great financial, commercial, and cultural successes of perfume No. 5 increased public recognition of the House of Chanel, desire for its haute couture designs, demand for the prêt-à-porter clothes, and enhanced the artistic reputation of the couturière Coco Chanel; and, in lean times, perfume kept Chanel solvent.^[2][5][7]

History[link]

The Coco Chanel era[link]

Establishment and recognition — 1909–1920s

The actress Gabrielle Dorziat wearing a Chanel plumed hat. (1912)

Fashion before Chanel: The artificial bust, waist, and hips of corsetry. (Bianca Lyons,1902)

The Chanel Suit 2009: a tailored cardigan-style jacket, knee-length skirt, two-toned shoes, jewellry, and a leather handbag.

The House of Chanel (Chanel S.A.) originated in 1909, when Gabrielle Chanel opened a millinery shop at 160 Boulevard Malesherbes, the ground floor of the Parisian flat of the socialite and textile businessman Étienne Balsan, of whom she was mistress.^[2] Hence, because the Balsan flat also was a salon for the French hunting and sporting élite, Chanel had opportunity to meet their demi-mondaine mistresses, who, as such, were women of fashion, upon whom the rich men displayed their wealth — as ornate clothes, jewelry, and hats; Coco Chanel thus could sell to them the hats she designed and made; she thus earned a living, independent of her financial sponsor, the socialite Balsan. In the course of those salons Coco Chanel befriended Arthur ‘Boy’ Capel, an English socialite and polo player friend of Étienne Balsan; per the upper class social custom, Chanel also became mistress to Boy Capel. Nonetheless, despite that social circumstance, Boy Capel perceived the businesswoman innate to Coco Chanel, and, in 1910, financed her first independent millinery shop, Chanel Modes, at 21 rue Cambon, Paris; yet, because that locale already housed a dress shop, the business-lease limited Chanel to selling only millinery products, not couture. Two years later, in 1913, the Deauville and Biarritz couture shops of Coco Chanel offered for sale prêt-à-porter sports clothes for women, the practical designs of which allowed the wearer to play sport.^[2][5]

The economic imperatives of national military victory in First World War (1914–18) affected European fashion through scarcity of materials, and the socio-economic mobilisation of women — from objects of sexual desire and economic display — to productive workers. Besides active military service, the enforced and increased production of coal made men scarce in the factories and in the fields, where they were replaced by women. Until that time — the end of 19th-century culture — fashion for women was about the masculine display of conspicuous consumption, so, clothes makers and designers then had to produce practical and protective garments that would allow women the physical freedom required to do a man’s job — in factory and field — in order to supply the French war effort against Imperial Germany (1871–1918). By that time, Chanel had opened a large dress shop at 31 rue Cambon, near the Hôtel Ritz, in Paris; among the clothes for sale were flannel blazers, straight-line skirts of linen, sailor blouses, long sweaters made of jersey fabric, and skirt-and-jacket suits. Technically, besides its relative low cost, as a couturière, Coco Chanel used jersey cloth because of its physical properties as a garment, such as its drape — how it falls upon and falls from the body of the woman — and how well it adapted to the simple garment-design that allowed the wearer freedom of movement, physical comfort, and flattering aesthetics. Sartorially, some of Chanel’s designs derived from the military uniforms made prevalent by the War to End all Wars; and, by 1915, the designs and the clothes confected by the House of Chanel were known throughout France.^[2]

In 1915 and in 1917, Harper’s Bazaar magazine reported that the garments of the House of Chanel were “on the list of every buyer” for the clothing factories of Europe.^[2] The Chanel dress shop at 31 rue Cambon presented day-wear dress-and-coat ensembles of simple design, and black evening dresses trimmed with lace; and tulle-fabric dresses decorated with jet, a minor gemstone material; the high-quality confection (design, construction, finish) of such clothes established the professional reputation of Coco Chanel as a meticulous couturière.^[2] After the First World War, the House of Chanel, following the fashion trends of the 1920s, produced beaded dresses, made especially popular by the Flapper woman.^[2] Moreover, by 1920, Chanel had designed and presented a woman’s suit of clothes — composed either of two garments or of three garments — which allowed a woman to have a modern, feminine appearance, whilst being comfortable and practical to maintain; advocated as the “new uniform for afternoon and evening”, it became known as the Chanel Suit. In 1921, to complement the suit of clothes, Coco Chanel commissioned the perfumer Ernest Beaux to create a perfume for the House of Chanel, and he produced several échantillons, including the perfume No.5, named after the number of the sample Chanel liked best. Originally, a flaçon of No. 5 de Chanel was a gift to regular clients of Chanel — yet, the popularity of the perfume prompted the House of Chanel to offer it for retail sale in 1922; in the event, No. 5 de Chanel became the signature fragrance of the couturière and of her house of couture. In 1923, to explain the success of her clothes, Coco Chanel told Harper’s Bazaar magazine that design “simplicity is the keynote of all true elegance.”^[2][8]

Business partners — late 1920s

The success of the No. 5 encouraged Coco Chanel to expand perfume sales beyond France and Europe, and to develop other parfumerie — for which she required investment capital, business acumen, and commercial access to the North American market. To that end, the businessman Théophile Bader (founder of Galeries Lafayette) introduced the venture capitalist Pierre Wertheimer to the couturière Coco Chanel. Their business deal established the Parfums Chanel company, a parfumerie of which Wertheimer owned 70 per cent, Bader owned 20 per cent, and Chanel owned 10 per cent; commercial success of the joint enterprise was assured by the Chanel name, and by the cachet of la “Maison Chanel”, which remained the sole business province of Coco Chanel.^[7] Nonetheless, despite the great business success of the Chanel couture and parfumerie, the personal relations between the couturière and her capitalist partner deteriorated, because, the artiste Coco Chanel said that Pierre Wertheimer was unfairly exploiting her talents as a fashion designer and as a businesswoman.^[7] Wertheimer reminded Chanel that he had made her a very rich woman; and that his venture capital had funded Chanel’s productive expansion of the parfumerie which created the wealth they enjoyed, all from the success of No. 5 de Chanel. Nevertheless unsatisfied, the businesswoman Gabrielle Chanel hired the attorney René de Chambrun to renegotiate the 10-per-cent partnership she entered, in 1924, with the Parfums Chanel company; the lawyer-to-lawyer negotiations failed, and the partnership-percentages remained as established in the original business deal among Wertheimer, Badel, and Chanel.^[7]

Elegance and the War — 1930s–1940s

From the gamine fashions of the 1920s, the dressmaker Coco Chanel had progressed to womanly fashions in the 1930s, which was a decade of innovations in the confection of haute couture clothes at Maison Chanel S.A.; evening-dress designs were characterised by an elongated feminine style, and summer dresses featured scintillating contrasts, such as silver eyelets, and shoulder straps decorated with rhinestones. In 1932, Mademoiselle Chanel presented an exhibition of jewelry dedicated to the diamond as fashion accessory; it featured the stylistically memorable Comet and Fountain necklaces of diamonds, which were of such original design, that Chanel S.A. re-presented them in 1993. Moreover, by 1937, the House of Chanel had expanded the range of its clothes to more women, and presented prêt-à-porter clothes designed, cut, and confected especially for the petite woman.^[2] Among fashion designers, wherein rag-trade originality is in the dress-making technique — design, cut, and confection — only the haute couture created by the avant-garde Elsa Schiaparelli could compete with the clothes of Coco Chanel.^[2]

Chanel’s spymaster:
General Walter Schellenberg
Chief of the Sicherheitsdienst.

During the Second World War (1939–45), Coco Chanel closed shop at Maison Chanel — leaving only jewellry and parfumerie for sale — and moved the Hôtel Ritz Paris, where she resided with her boyfriend, Hans Günther von Dincklage, a Nazi intelligence officer.^[2][5][7] Upon conquering France in June of 1940, the Nazis established a Parisian occupation-headquarters in the Hôtel Meurice, on the rue de la Rivoli, opposite the Louvre Museum, and just around the corner from the fashionable Maison Chanel S.A., at 31 rue Cambon.^[2] Meanwhile, because of the Nazi occupation’s official anti-Semitism, Pierre Wertheimer and family, had fled France to the U.S., in mid-1940. Later, in 1941, Coco Chanel attempted to legalistically assume full and formal business control of Parfums Chanel, but was thwarted by an administrative delegation that disallowed her sole disposition of the parfumerie. Having foreseen the Nazi occupation policy of the seizure-and-expropriation to Germany of Jewish business and assets in France, Pierre Wertheimer, the majority partner, had earlier, in May 1940, designated Felix Amiot, a Christian French industrialist, as the “Aryan” proxy whose legal control of the Parfums Chanel business proved politically acceptable to the Nazis, who then allowed the perfume company to continue as an operating business.^[7][9]

Occupied France abounded with rumours that Coco Chanel was a Nazi collaborator; her clandestine identity was secret agent 7124 of the Abwehr, code-named “Westminster”.^[10] As such, by order of General Walter Schellenberg, of the Sicherheitsdienst, Chanel was despatched to London on a mission to communicate to British Prime Minister Winston Churchill the particulars of a “separate peace” plan proposed by Reichsführer-SS Heinrich Himmler, who sought to avoid surrendering to the Red Army of the Soviet Russians. At War’s end, upon the Allied liberation of France, Chanel was arrested for having collaborated with the Nazis. In September 1944, the Free French Purge Committee, the épuration, summoned Chanel for interrogation about her collaborationism, yet, without documentary evidence of or witnesses to her collaboration with the Nazis, and because of Churchill’s secret intervention in her behalf, the épuration released Coco Chanel from arrest as a traitor to France.^[11][7] Nation-wide, the liberated French people avenged themselves upon the men and the women who had collaborated with the Third Reich’s brutal, five-year occupation of France; a shaved head was the mildest punishment for les collaborateurs horizontales, women who had expediently perdured the Occupation and survived the War with sexual prostitution. Despite having been freed by the British political grace of the deus ex machina Churchill, the strength of the rumours of Chanel’s Nazi collaboration had made it infeasible for her to safely remain in France; promptly, Coco Chanel and her German lover, Hans Günther von Dincklage, went into an eight-year exile to Switzerland.^[2][7]

In the post–War period, during Coco Chanel’s Swiss exile from France, Pierre Wertheimer returned to Paris, and regained formal administrative control of his family’s business holdings — including control of Parfums Chanel, the parfumerie established with his venture capital, and successful because of the Chanel name.^[7] In Switzerland, the news revived Coco Chanel’s resentment at having been an artiste commercially exploited by her business partner, for only ten per cent of the money; spiteful, she then established a rival Swiss parfumerie to create, produce, and sell her “Chanel perfumes”. In turn, Wertheimer, the majority capital stock owner of Parfums Chanel, saw his business interests threatened, and his commercial rights infringed, because he did not possess legally exclusive rights to the Chanel name. Nonetheless, Wertheimer avoided a trademark infringement lawsuit against Coco Chanel, lest it damage the commercial reputation and the artistic credibility of his Chanel-brand parfumerie. Sagaciously, Pierre Wertheimer settled his business- and commercial-rights quarrel with Mademoiselle Chanel, and, in May 1947, they renegotiated the 1924 contract that had established Parfums Chanel — she was paid $400,000 in cash (wartime profits from the sales of perfume No. 5 de Chanel); assigned a 2.0 per cent running royalty from the sales of No. 5 parfumerie; assigned limited commercial rights to sell her “Chanel perfumes” in Switzerland; and granted a perpetual monthly stipend that paid all of her expenses. In exchange, the astute businesswoman, Gabrielle Chanel closed her Swiss parfumerie enterprise, and sold to Parfums Chanel the full rights to the name “Coco Chanel”.^[7][12]

Resurgence — 1950s–1970s

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Chanel haute couture: Cashmere suit comprising a sleeveless dress and a long, cardigan-style coat. (ca. 1960)

In 1953, from Switzerland, Coco Chanel returned to Paris, and found the fashion world enamoured of the “New Look”, by Christian Dior, which, although very feminine, was, in her opinion, a return to the corseted fashions she had opposed at the beginning of her career as a couturière.^[2] It was a stylistic and technical challenge to which she responded, by recognizing and acknowledging, that although the market for haute couture was much changed, she could catch-up and prevail.^[2] Becoming competitive again would necessarily come at a great price; Chanel needed to be a significant presence in: haute couture, pret-a-porter, costume jewelry and fragrance. Coco swallowed her pride and re-approached Pierre for business advice and financial backing.^[7] In return, he negotiated for himself complete rights to all products bearing the brand: "Chanel."^[7] But their re-kindled collaboration paid off handsomely as Chanel, with her unerring sense of style, once again became the single, most prestigious label in all of fashion.^[7] Importantly for the brand and starting in 1953, Coco collaborated with jeweler Robert Goossens to design a line of Chanel jewelry which exquisitely complimented her iconic fashion designs. For example, she paired her re-launched signature "Chanel Suit" (consisting of a knitted wool cardigan with a matching skirt) with long strings of black and white pearls, setting off the suit wonderfully while at the same time adding to it a degree of femininity, thus lightening a sometimes severe look."^[5]

She also introduced the Chanel gold or metallic chain-strapped and quilted leather handbags in February 1955. The launch date for this line, 2/55, thus became the internal "appellation" for the quilted bag line. It is still known throughout the world as the "2/55" bag and it, just like the "Chanel Suit" has never really ever fallen out of fashion.^[2] Throughout the fifties, her taste continued its unerring path to success, even as she turned to new areas of conquest. Her first venture into men's fragrance became yet another enduring success, Chanel's eau de toilette for men, Pour Monsieur (which has also been marketed under the name: "A Gentleman's Cologne") became, endured and remains even today the number one selling men's fragrance. Chanel and her spring collection received the Fashion Oscar at the 1957 Fashion Awards in Dallas. Pierre Wertheimer bought Bader's 20% share of the perfume business, giving his family 90 per cent.^[7] Pierre's son Jacques Wertheimer took his father's place in 1965.^[7] Coco's attorney Chambrun called the now-gone-relationship as "one based on a businessman's passion, despite her misplaced feelings of exploitation."^[7] He told Forbes, "Pierre returned to Paris full of pride and excitement [after one of his horses won the 1956 English Derby]. He rushed to Coco, expecting congratulations and praise. But she refused to kiss him. She resented him, you see, all her life."^[7]

Coco Chanel died on 10 January 1971, aged 87.^[2] She was still "designing, still working" at the time of her death.^[2] For example, in the (1966–1969) period, she designed the air hostess uniforms for Olympic Airways, the designer who followed her was Pierre Cardin. In that time, Olympic Airways was a luxury airline, owned by the transport magnate Aristotle Onassis. After her death, leadership of the company was handed down to Yvonne Dudel, Jean Cazaubon, and Philippe Guibourge.^[2] After a period of time, Jacques Wertheimer bought the controlling interest of the House of Chanel.^[2][7] Critics stated that during his leadership, he never paid much attention to the company, as he was more interested in horse breeding.^[7] In 1974, the House of Chanel launched Cristalle eau de toilette, which was designed when Coco Chanel was alive. 1978 saw the launch of the first non-couture, prêt-à-porter line and worldwide distribution of accessories.

Alain Wertheimer, son of Jacques Wertheimer, assumed control of Chanel S.A. in 1974.^[2][7] In the U.S., No. 5 de Chanel was perceives as a passé fashion.seen as a passe perfume.^[7] Alain revamped Chanel No.5 sales by reducing the number of outlets carrying the fragrance from 18,000 to 12,000. He removed the perfume from drugstore shelves, and invested millions of dollars in advertisement for Chanel cosmetics. This ensured a greater sense of scarcity and exclusivity for No.5, and sales rocketed back up as demand for the fragrance increased.^[7] He also used many famous people to endorse the perfume — from Marilyn Monroe to Audrey Tautou. Looking for a designer who could bring the label to new heights, he persuaded Karl Lagerfeld to end his contract with fashion house Chloé.

The post–Coco era[link]

The couturier Karl Lagerfeld, chief designer at Chanel S.A., and the Bolivian couturière Monica Moss. (Monaco 2005)

Chanel couture by Lagerfeld: the Autumn–Winter 2011–2012 collection

The 1980s — Karl Lagerfeld

In 1981, Chanel launched a new eau de toilette for men, Antaeus. In 1983, Karl Lagerfeld took over as chief designer for Chanel.^[7] He changed Chanel's fashion lines from the old lines to shorter cuts and eye capturing designs. During the 1980s, more than 40 Chanel boutiques were opened up worldwide.^[7] By the end of the 1980s, these boutiques sold goods ranging from US$200-per-ounce perfume, US$225 ballerina slippers to US$11,000 dresses and US$2,000 leather handbags.^[7] Rights to Chanel cosmetics and fragrances were held by Chanel only and not shared with other beauty producers and distributors.^[7] As Lagerfeld took charge as chief designer, other designers and marketers for Chanel worked on keeping the classic Chanel look to maintain the Chanel legend.^[7] Chanel marketer Jean Hoehn explained, "We introduce a new fragrance every 10 years, not every three minutes like many competitors. We don't confuse the consumer. With Chanel, people know what to expect. And they keep coming back to us, at all ages, as they enter and leave the market."^[7] The launch of a new fragrance in honor of Coco Chanel, Coco, in 1984 maintained success in the perfumery business with Chanel.^[7] In 1986, the House of Chanel struck a deal with watchmakers and in 1987, the first Chanel watch made its debut. By the end of the decade, Alain moved the offices to New York City.^[7]

The 1990s

The company became a global leader in fragrance making and marketing in the 1990s.^[7] Heavy marketing investment increased revenue.^[7] The success of the Maison de Chanel brought the Wertheimer family fortune to $5 billion USD.^[7] Product lines such as watches (retailing for as much as $7,000 USD), shoes, high-end clothes, cosmetics, and accessories were expanded.^[7] Sales were hurt by the recession of the early 1990s, but Chanel recovered by the mid-1990s with further boutique expansion.^[7] 1990 saw the launch of ĹŹ.^[7]

In 1996, Chanel bought gunmaker Holland & Holland. It attempted to revamp Holland & Holland, but did not succeed.^[7] 1996 also greeted the launch of Allure fragrance and due to its immense popularity, a men's version, Allure Homme was launched in 1998. Better success came with the purchase of Eres (a swimwear label). The House of Chanel launched its first skin care line, PRÉCISION in 1999. That same year, Chanel launched a new travel collection, and under a license contract with Luxottica, introduced a line of sunglasses and eyeglass frames.

The 21st century

While Alain Wertheimer remained chairman of Chanel, CEO and President Françoise Montenay was to bring Chanel into the 21st century.^[7] 2000 saw the launch of the first unisex watch by Chanel, the J12. In 2001, Bell & Ross was purchased (a watchmaker). The same year, Chanel boutiques offering only selections of accessories were opened in the United States.^[7] Chanel also launched a small selection of menswear as a part of their runway shows which may be purchased at a few flagship boutiques including Rue Cambon vjk (Paris), Soho (New York), Roberston Blvd (Los Angeles) and the Prince's building (Hong Kong).