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Chanel was among the first luxury brands to recognise the potential of the Indian market, with its flagship store opening in Delhi in 2005. Now almost 20 years later, the house is launching its own e-commerce platform in the country, which is officially going live today.
At the moment, less than a handful of brands, including Tiffany Co. and Bally, have their own dedicated e-commerce platforms in India as most brands in India are still busy trying to navigate the bricks-and-mortar landscape in a country that has limited real estate options for luxury brands. With the core of Chanel’s online offering being fragrance, beauty and eyewear, just like in other markets such as the UAE and UK, clients will still have to shop in-store for fashion, accessories and shoes.
Amit Goyal, head of Chanel in India, says: “The e-commerce portal is an extension of our brand, providing an online source through which our clients that live outside the metro cities can access Chanel fragrance, beauty and eyewear products while experiencing exceptional luxury service.”
Chanel will now be able to service 27,000 postcodes in India, which means the luxury brand can service the whole subcontinent, a process that is complicated in such a vast country characterised by a lack of luxury shopping malls and high streets. Already in the pre-launch phase, Chanel has seen demand from Kolkata, Pune, as well as the southern states of Tamil Nadu, Andhra Pradesh and Kerala. “India is a digitally mature country, and with e-commerce, we want to continue to build brand equity in the local market. We want to be available in spaces where we don t have plans to open boutiques soon,” says Goyal.
According to a recent report by RedSeer Strategy, the Indian e-commerce market is set to grow from $75 billion in 2023 to $111 billion by 2024, with another report stating that 65 per cent of online buyers are in the mass segment.
Focusing on fragrance, beauty and eyewear
Almost 20 years since its launch, Chanel still only has one fashion boutique at The Chanakya, a luxury shopping centre in Delhi, and that does not look to be changing soon. However, the brand has nine retail points in India. Five dedicated to the beauty market, of which four are in the National Capital Region and one in Mumbai. Then there are three travel retail outposts at New Delhi, Mumbai and Hyderabad’s international airports.
2025 plans include a second fragrance and beauty boutique in Mumbai, as well as a beauty and fragrance boutique in Bengaluru and a travel retail boutique in Bengaluru’s international airport.
“Post-pandemic, the luxury sector in India has been on the rise. We see the fragrance and beauty market in India growing rapidly,” says Goyal.
Embracing digital expansion
With delivery taking between two and seven days, Chanel’s online customers in India will have the option to personalise their purchases and also select two samples with every purchase. There is also the option to book a one-on-one appointment at any of the local boutiques. “Indian clients want to have an experience comparable to what is available globally. We took care to offer concierge service wherever possible. We have married the boutique experience with the online commerce website. Every detail was thought of,” says Goyal.
“It is early to gauge the trend, but we are seeing high interest from our clients in fragrances. We see an equal split of male and female clients,” he adds. In the soft launch phase most transactions were done through Unified Payments Interface (UPI), which is typically done through a mobile. This speaks of India’s high dependence on digital payment systems.
Chanel’s e-commerce launch in India not only extends its reach but also provides a luxurious and seamless shopping experience for its diverse clientele across the country. Will it lead to Chanel opening more fashion boutiques in the country? Only time will tell.
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