Chanel plans to invest in opening more stores in mainland China despite a shift of spending by Chinese shoppers to other markets as they resume travelling, the French label said on Tuesday.
"The ability to scale is really important," said Leena Nair, chief executive of the privately-owned label, known for its tweed suits, quilted handbags and No. 5 perfume.
On a recent trip to China, she said she noticed young shoppers were interested in luxury purchases as longer term financial investments.
First quarter sales updates from luxury brands showed contrasting results in mainland China, offering little reassurance that Chinese demand for high end fashion is bouncing back quickly.
This has cast a cloud over the outlook for the industry, which had high hopes that the key market would provide a boost as the post-pandemic splurge in the United States and Europe abated.
"China is still a place where we are, I would say, under distributed," said Chanel chief financial officer Philippe Blondiaux, citing the label's 18 fashion boutiques compared to competing brands that have around 40 to 50 stores.
