Chanel Maintains Investment in China Amid Luxury Market Downturn

Chanel is maintaining its investment strategy in China despite a broader downturn in the luxury market caused by a property crisis and economic slowdown. The company recently renovated its Plaza 66 boutique in Shanghai to signal its long-term commitment to the region.

Chief Executive Officer Leena Nair stated that China remains a critical market because clients there understand sophistication and refinement. While other luxury brands face a crackdown on conspicuous consumption and chilled discretionary spending, Chanel reported a comparable revenue increase of approximately 16 percent in the first half of the year.

This growth follows the introduction of 2026 collections by fashion designer Matthieu Blazy. In 2025, the region including China accounted for roughly 48 percent of the company's total sales, which grew 1.8 percent to reach 19.3 billion US dollars.