INB410

1. TOPIC : Competitive analysis between major two
brands of handbags namely CHANEL & LOUIS
VUITTON
NAME : IFFATH MAHJABEEN IQBAL
ID: 1420272030
Serial number: 25

2. My Product:
CHANEL HANDBAGS
Company overview:
Chanel S.A. is a French, privately held company owned by Alain and Gérard
Wertheimer, grandsons of Pierre Wertheimer, who was an early business
partner of the couturière Gabrielle Bonheur Chanel. Chanel S.A. is a high fashion
house that specializes in haute couture and ready-to-wear clothes, luxury
goods and fashion accessories. In her youth, Gabrielle Chanel gained the
nickname Coco from her time as a chanteuse. As a fashion designer, Coco
Chanel catered to women’s taste for elegance in dress, with blouses and suits,
trousers and dresses, and jewellary (gemstone and bijouterie) of simple design,
that replaced the opulent, over-designed, and constrictive clothes and
accessories of 19th-century fashion. The Chanel product brands have been
personified by fashion models and actresses, including Inès de La
Fressange, Catherine Deneuve, Carole Bouquet, Vanessa Paradis, Nicole
Kidman, Anna Mouglalis, Audrey Tautou, Keira Knightley and Marilyn Monroe. It
was established in the year 1909.
CHANEL BAGS:
The Chanel 2.55 is a luxury leather handbag or purse manufactured by the
fashion house of Chanel. In the 1920s, Coco Chanel became tired of having to
carry her handbags in her arms and decided to design a handbag that freed up
her hands. Inspired by the straps found on soldiers’ bags she added thin straps
and introduced the resulting design to the market in 1929. After her successful
comeback to the fashion industry in 1954, Chanel decided to update her handbag
.The resulting design was called 2.55 after the date of creation, February 1955.
KEY FEATURES OF THE BAG:
The bag has a number of features:
 The lining’s burgundy colour represents the colour of the uniforms at the
convent where she grew up.
 There is a zippered compartment at the inside of the front flap. That is
where Chanel is rumoured to have stored her love letters in her original
bag.

3.  The backside has a back outside flap for storage of money.
 Chanel, recognising that modern women needed to have their hands free
while attending social functions, designed a double-chain shoulder strap.
The chains were attached by leather-threaded chain inserted though
eyelets. The caretakers of the convent where she grew up held the keys at
their waist dangling from the same type of chains as the 2.55 shoulder
strap chains.
 The bag originally came with a front lock called “the Mademoiselle Lock”
(in reference to Coco Chanel never marrying). Since the 1980s, versions
can also be supplied with a lock in the shape of a double CC logo. These
are called “Classic Flaps”.
 The bag has a quilted diamond or herringbone pattern on the exterior.
Using a running stitch, this gives the bag shape and volume.The pattern is
believed to have been inspired by several sources: by jockeys’ riding
coats, by the stained-glass windows of the abbey at Aubazine, as well as
by the cushions in Chanel’s Paris apartment.
VARIATIONS IN DESIGN:
Since its introduction, there have been several variations of the original
design including different colour leather/fabric combinations, metal and
interwoven leather straps and the lock, mademoiselle vs. interlocking CC.
Chanel released an exact copy of the original 2.55 in February 2005 in
commemoration of the 50th anniversary of the creation of the original.
Though the name “Reissue 2.55” should apply only to those commemorative
handbags it is now commonly used as a name for all the handbags resembling
the original 2.55.
PRICE HISTORY:
Since the 2.55's release in 1955, its pricing has far outpaced inflation. One
research study into its price history revealed that price increases between
1955 and 1990 were generally explained by inflation, but there has been a
rapid value increase since 1990 and especially 2010. Specifically, its price has
increased from $2850 in 2010 to almost $5000 as of 2016.

4. TAGLINE:
TARGET MARKET:
Chanel is targeting the classy, independent, free-spirited, YOUNG members of the
elite. Being the influential force that it is, the brand wants to transfer Coco
Chanel’s qualities to its models and its target audience. Chanel’s Spring/Summer
2015 campaign emulates rebellious femininity in the form of a street riot. The
models are confident, bright, stylish and feminine which reminds us about Coco
Chanel. The brand still revolves around her and her legacy, with the campaign
featuring slogans such as “Tweed is still better than a Tweet”. Today Twilight
star, Kristen Stewart, is one of the faces of Chanel.

5. DIRECT COMPETITOR:
LOUIS VUITTON:
COMPANY OVERVIEW:
Louis Vuitton Malletier, commonly referred to as Louis Vuitton or shortened
to LV, is a fashion house and luxury retail company founded in 1854 by Louis
Vuitton. The label's LV monogram appears on most of its products, ranging
from luxury trunks and leather goods to ready-to-wear, shoes, watches, jewelry,
accessories, sunglasses and books. Louis Vuitton is one of the world's leading
international fashion houses; it sells its products through standalone boutiques,
lease departments in high-end department stores, and through the e-commerce
section of its website.
LOUIS VUITTON BAGS:
Since the 19th century, Louis Vuitton trunks have been made by
hand. Contemporary Fashiongives a preview of the creation of the LV trunks:
"The craftsmen line up the leather and canvas, tapping in the tiny nails one by
one and securing the five-letter solid pick-proof brass locks with an individual
handmade key, designed to allow the traveler to have only one key for all of his
or her luggage. The wooden frames of each trunk are made of 30-year-
old poplar that has been allowed to dry for at least four years. Each trunk has a
serial number and can take up to 60 hours to make, and a suitcase as many as 15
hours."
Iconic bags of Louis Vuitton include the Speedy bag and Neverfull bags. Each
season Louis Vuitton produces rare, limited edition bags that are generally only
available by reservation through larger Louis Vuitton stores.
KEY FEATURES OF THE BAG: