The luxury goods maker Chanel has told the BBC the idea’s elected to set up its global office inside UK.
For once in its 110-year history, the brand can be gathering the majority of its global business functions under one roof.
Chanel, renowned for its tweed suits, handbags as well as perfume, had global sales of over £7bn last year, as well as employs more than 20,000 people.
the idea has over 30 million social media followers on Instagram.
Chanel told BBC Radio 4’s Today programme which the idea “wanted to simplify the structure of the business as well as London can be the most appropriate place to do which for an international company. London can be the most central location for our markets, uses the English language as well as has strong corporate governance standards with its regulatory as well as legal requirements”.
The decision – which can be understood to involve dozens of jobs – means which Chanel has picked London as the base for its global team over additional locations such as brand-new York, or even its creative hub of Paris.
Chanel, whose Little Black Dress has come to epitomise the label’s Parisian heritage, can be retaining its head designer Karl Lagerfeld as well as his team inside French capital.
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Justine Picardie, editor-in-chief of Harpers’ Bazaar as well as Coco Chanel’s biographer, hailed the move as a mark of the global powerhouse’s confidence inside UK’s long-term prospects.
She pointed out which the idea also moves Chanel closer to one of its fastest growing customer bases with “spending on luxury goods by affluent London households being only second to Hong Kong, in terms of growth”.
She added: “Chanel leads the way. My strong intuition can be which additional (luxury brands) will follow.”
The reasons Chanel gives for its decision echoes those cited by the likes of banks as well as manufacturers who’ve opted to move operations to the UK through the years.
The news comes as many businesses voice concerns about the continued uncertainty over Brexit as well as future trading arrangements, as well as the impact which may have on investment as well as jobs.
Chanel’s decision will be welcome news to British designers as London Fashion Week gets underway. They’re potentially facing upheaval to their supply chains inside form of tariffs, delays at the border as well as exchange rate volatility inside event of a no-deal Brexit.
Such concerns could, according to Paul Alger, of the Fabrics as well as Textiles Association, make buyers at catwalk shows hesitate to place orders, which could be due for delivery next spring.
The fashion industry contributed over £32bn to the UK industry in 2017, according to the British Fashion Council. which’s an increase of 5.4% on 2016, generating the idea one of the fastest growing sectors of the economy.