In a striking departure from tradition, the French luxury powerhouse Chanel chose an abandoned Manhattan subway station for its first New York fashion show in seven years. The event, held on Tuesday, was more than a display of sequins and tweed; it signaled a bold new chapter under creative director Matthieu Blazy and a strategic shift for the brand's future.
A Gritty Runway for a Re-energised Brand
The Bowery station on New York's Lower East Side, often used as a film set, provided an unexpectedly raw backdrop. Celebrities and top clients navigated puddles in their Chanel heels to attend the Métiers d'Art show. The collection, Blazy's second for the house, presented a unique blend of high fashion and New York-inspired kitsch. Models disembarked from a train, strutting down the platform as commuters, showcasing everything from sequined I ❤️NY T-shirts and knitted Superman sweaters to quilted squirrel-shaped handbags and elegant tweed suits.
The star-studded front row included actor Tilda Swinton, musician Jon Bon Jovi, designer Dapper Dan, and actress Christine Baranski. Newly appointed Chanel ambassador A$AP Rocky made a statement in a red Chanel suit, arriving with fellow ambassador Margaret Qualley. The brand also hosted high-spending clients, like Jenn Smith from Florida, who were treated to five-star accommodation and a trip to see "The Nutcracker."
The Business Strategy: From Bags to a "Full Look"
Behind the glamour, a clear business directive was articulated by Bruno Pavlovsky, President of Chanel Fashion. In an interview before the show, he emphasized that Chanel's focus is moving beyond its iconic quilted handbags. "I don't need to sell more bags," Pavlovsky stated. "I'm not trying to push and to become a bag company. We are a fashion company."
This philosophy will drive a five-year plan to overhaul Chanel's boutiques and department store corners. The goal is a "full look approach," where ready-to-wear clothing is seamlessly integrated with accessories and shoes, making it easier for shoppers to envision complete outfits. Pavlovsky revealed that the brand's business is "better than ever" following Blazy's appointment in April 2024, which provided an "incredible halo effect." After a 4.3% revenue decline in 2024 to $18.7 billion, the company is now back to single-digit growth and has more than doubled its business compared to five years ago.
Defending the Price Tag in a Competitive Market
Pavlovsky also addressed Chanel's significant price increases, which have seen the cost of a medium classic flap bag soar from $5,800 in 2019 to $11,300 today—placing it in the same league as rival Hermès. He defended the pricing, stating it reflects craftsmanship, quality, and labor costs, not increased profit margins. "The people who continue to buy Chanel and love Chanel feel comfortable with the level of prices," he asserted, noting that the best luxury is "expensive and not always accessible."
The United States remains Chanel's largest market, with key hubs in Florida and California. The brand prioritises its top clients, who spend around $100,000 annually. While newer bags like the Chanel 25 attract fresh customers, Pavlovsky clarified that recruiting new clients "is not an obsession at Chanel." The primary aim is to keep its most loyal shoppers engaged and satisfied as the house embarks on this renewed fashion-first journey.
