Chanel’s Strategic Avoidance of the Outlet Market and Its Implications for Brand Prestige

Sitong Gu

2025

Abstract

The strategic decision of luxury brands to avoid discount markets, particularly exemplified by Chanel’s avoidance of outlet markets, offers a unique perspective on the relationship between brand uniqueness and value. This study explores Chanel’s deliberate choice to steer clear of outlet stores, analyzing how this strategy impacts the brand’s prestige and luxury value. Drawing on case studies, including Prada’s experience in entering the outlet market, the research highlights the risks and challenges associated with such a move. The findings reveal that entering the outlet market can lead to brand image dilution, reduced consumer loyalty, and a decline in secondary market prices, as seen in Prada’s case. In contrast, Chanel’s avoidance of outlets has allowed the brand to maintain its high-end positioning, preserve its exclusivity, and strengthen consumer identity and loyalty. The study underscores the importance of strategic channel selection for luxury brands, emphasizing the need to balance commercial interests with brand image maintenance. The research concludes that Chanel’s strategy of avoiding discount markets is a successful approach to preserving brand prestige and long-term sustainability in the luxury market.

Paper Citation

in Harvard Style

Gu S. (2025). Chanel’s Strategic Avoidance of the Outlet Market and Its Implications for Brand Prestige. In Proceedings of the 2nd International Conference on Public Relations and Media Communication - Volume 1: PRMC; ISBN 978-989-758-778-8, SciTePress, pages 296-300. DOI: 10.5220/0013990500004916

in Bibtex Style

@conference{prmc25,
author={Sitong Gu},
title={Chanel’s Strategic Avoidance of the Outlet Market and Its Implications for Brand Prestige},
booktitle={Proceedings of the 2nd International Conference on Public Relations and Media Communication - Volume 1: PRMC},
year={2025},
pages={296-300},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013990500004916},
isbn={978-989-758-778-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Public Relations and Media Communication - Volume 1: PRMC
TI - Chanel’s Strategic Avoidance of the Outlet Market and Its Implications for Brand Prestige
SN - 978-989-758-778-8
AU - Gu S.
PY - 2025
SP - 296
EP - 300
DO - 10.5220/0013990500004916
PB - SciTePress