What Happened: To celebrate its No.5’s Centennial, Chanel has launched a limited edition collection called Chanel Factory 5, kicking off the initiative at eight pop-up stores worldwide, including in Chengdu. The collection consists of 17 limited-edition bath and body products with black and white packing inspired by everyday objects like tea caddies, paint pots, and oil tins.
The French Maison even tried to recreate the offline experience on its website and Tmall flagship. By entering Chanel Beauty’s landing page, shoppers are introduced to the collection with a short video, and then, thanks to AR capabilities, can see the product on their mobile device.
The Jing Take: Chanel continues to be one of the hottest brands in Mainland China. Social media platforms are already awash with mentions of this latest limited-edition capsule, and the lifestyle sharing app Little Red Book already has 40,000 instances of UGC. As a result, most of the hottest pieces have sold out both online and offline.
Not only has the luxury house successfully leveraged social exposure and its ambassadors Zhou Xun and Zhou Yutong’s celebrity power, but its complimentary gift strategy has further accelerated sales. Netizens are craving the brand’s ‘net-bag’ — gifted to consumers who buy more than five items from the collection. Users like @adifferentme and many others have showcased these bags on Little Red Book.
With the rising influence of Gen Z, a clear trend has emerged: This generation has a strong preference for co-branded items, limited editions, and customization. Tmall data shows that, between January and October last year, the consumption of co-branded and limited-edition luxury items by Gen Zers increased by 300 to 400 percent. But today, simply creating a limited capsule edition to attract consumers is not enough, so Chanel devised a seamless omnichannel journey, blended with online interactions and pop-up experiences along with a dedicated focus on social media. These components are essential for driving sales and gaining organic traffic.
The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.