Chanel to maintain China investments despite luxury demand downturn

Chanel has announced its intention to maintain and expand investments in China, despite a broader downturn in the luxury goods sector caused by an economic slowdown and a property market crisis in the country. CEO Leena Nair emphasized that China remains a strategic long-term market due to a client base that values sophistication and refinement.

As part of this commitment, the company has focused on physical retail expansion and renovations, such as the redesigned Plaza 66 boutique in Shanghai by architect Peter Marino. While some international luxury brands are downsizing their footprints in the region, Chanel is pursuing a strategy of larger stores and more comprehensive services. The brand currently operates 133 stores in China, including fashion, perfume, beauty, and jewelry locations.

This regional focus is part of a wider global expansion plan. Chanel opened 40 stores worldwide in 2025 and expects to open an additional 30 stores by the end of 2026. In 2025, the company allocated $1.449 billion to capital expenditures and $2.395 billion toward global brand promotion and customer engagement.