Week 4: The Marketing Environment- Chanel cuts down

    Chanel has been deeply effected by the economic crisis.The company had a upcoming new project to tour their global art installation to 86 cities around the world throughout 2010. However they had to cancel the operation because the company could not afford it. A Chanel spokeswoman told WWD "Considering the current economic crisis, we decided it was best to stop the project, We will be concentrating on strategic growth investments." (http://sheerevents.blogspot.com). I think it is a good idea for Chanel to postpone the project because it would be a waste to put so much effort into it during a recession where no funds would not come in because consumers are affected by the economy.
   Chanel also cut 200 jobs because sales have decline. Commentators described the job losses as the "label’s worst crisis since founder Coco Chanel fired all her staff at the outbreak of war in 1939"(http://jcrewaholics.com/behind-the-scenes/jcrew-chanel-both-affected-by-this-economy/).
 Many high brands are affected by the reccession, however I am confident that Chanel will recover because it is one of those brand that a woman can't resist. The celebrities especially are satisify with Chanel and continue buying the company's handbags, although the economy has no or little effect on them.