6 Global Issue The profit shrink ,especial in cosmetics Disorder competition in international marketCurrent SituationFrance & USFrance : profit down from 2007 to nowUS: 0.8% growth in 2007Worldwide*cosmetics sales increase just 3.6% in 2006, not a great change in 2007Reason
7 Risks High Duty In China, the customs added 60% to the cost of goods Different ConceptsCompare western countries and China on perfume preferenceFake GoodsDifficult to distinguishIn every corner, especially in developing countries
8 Future trend Pay more attention to emerging markets Some brands are just in developed cities, not yet found in small cities, or developing countriesReducing the price---- cost of goodCurrently, the cost is too high for average citizens who want to buy itExpand the man cosmetics market continuallyCurrently, not universal like woman cosmetics
26 Expand business in emerging market more rapidly. Chanel OpportunityExpand business in emerging market more rapidly.Mobile art exhibition in seven cities in China. The first is in Hong Kong.Opening of its largest global franchised store in TokyoChanel 2008/2009 winter season
27 Chanel counterfeits and illegal use of its double-C logo. Chanel ThreatChanel counterfeits and illegal use of its double-C logo.Chanel will face a strong competition in China market and meet a lot of difficulties.
28 Short-termFind ways to lower the prices of products in emerging marketsImprove its cosmetic lineDevelop a men’s line of facial productsAllocate the investment in expanding emerging market reasonablyPay attention to the fakes and may adopt technology to limit them
29 Long- term Recommendations A. More focus on younger generationMore ideas in clothing designMore research in African market
30 Conclusion From history to nowadays Faces opportunity and challenges Future development