Chanel plans to keep investing in China despite demand downturn

[PARIS] Chanel plans to keep investing in China, undeterred by the downturn in the country that has hit the luxury industry hard.

“When I look at China long term, it continues to be an important market for us because here is a market where the clients understand sophistication, refinement,” Chanel chief executive officer Leena Nair told David Rubenstein in an interview for an upcoming episode of The David Rubenstein Show: Peer to Peer Conversations.

“We will continue to invest.”

Nair pointed to the brand’s recent renovation of its Plaza 66 boutique in Shanghai, redesigned by architect Peter Marino, who is also known for his work on retail projects for rival LVMH Moët Hennessy Louis Vuitton.

Luxury brands have faced a weakness in demand in China as an economic slowdown and a property market crisis have chilled discretionary spending on high-end products.

The slump has been exacerbated by a crackdown on conspicuous consumption and an effort by local authorities to reclaim tax revenue, moves that have hit the wealthy in particular.

SEE ALSO

Luxury spending spurs Hong Kong’s ‘flight to quality’ economic recovery: analysts

Luxury sales plunge in China as tax push hits rich shoppers

China’s shoppers are buying luxury again as stock market rebounds

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

In August, Bloomberg News reported that Chanel’s comparable revenue in the first half rose by around 16 per cent, with growth in all regions including China, a performance that was better than its competitors.

Chanel has enjoyed renewed attention from shoppers following the introduction of the collections in 2026 by its new fashion designer Matthieu Blazy.

The privately held company publishes results once a year, and in May said sales grew 1.8 per cent to US$19.3 billion in 2025. The region that includes China represented about 48 per cent of revenue during the period. BLOOMBERG