Integrated International Negotiation

Chanel, the famous French brand of perfumes prepares a market entry in Sarad. Responsible for iconic and revolutionary women's fashion designs like the Chanel suit, "the little black dress" and legendary fragrance Chanel No. 5, Chanel is one of the most renowned luxury brands in the world, producing clothing, fragrance, jewelry, makeup and skincare. Chanel's biggest competitors include other fashion conglomerates like the PPR and LVMH Groups, but comparing the size of these juggernauts is difficult as Chanel's financial statistics are closely guarded. The privately held House of Chanel is co-owned by the Wertheimer brothers, grandsons of Pierre Wertheimer, who helped Coco Chanel establish her perfume company in 1924. Worldwide, Chanel S.A. operates some 310 Chanel boutiques; 94 in Asia, 70 in Europe, 10 in the Middle East, 128 in North America, 2 in South America, and 6 in Oceania. The shops are located in wealthy communities, usually in department stores, shopping districts, and inside airports.

Asia The Chanel shop at the Prince Building, Hong Kong

Europe The Chanel joaillerie, Place Vendôme, Paris.

North America The Chanel shop, Rodeo Drive, Beverly Hills.

Oceania The Chanel shop at Queens Plaza, Brisbane

1

The marketing department does not see sufficient potential to open a Chanel boutique in Sharahad. However, all the studies indicate an excellent potential for Chanel perfumes. In Sharahad, perfumes and cosmetics are imported by specialized wholesalers and made available to the public through specialized boutiques, department stores and duty free stores at the airport. Chanel considers two possible modes of entry in Sharahad: a branch (a subsidiary) or a local distributor. Contacts have been established with various well-known local importers who are thriving to represent the iconic French brand. Sharahad is a stable monarchy with a dynamic economy based on tourism and financial transactions. Foreign investments are welcome and many...