Brand Strategy Contributes to CHANEL’s High Brand Loyalty

Abstract

With the unexpected arrival of the COVID-19 pandemic, nearly all market shows a dramatically decreased tendency in kinds aspect under this influence. However, Chanel recovered quicker than most other luxury brands. Observing the general development of the market, the luxury market is not booming in the past few years, but Chanel was able to stabilize its sales and profits and raise its price. The achievement highly depends on the higher customer loyalty compared to others. Most past research examined the overall performance of a brand by focusing on brand strategy and studying customer loyalty through customer behaviors. Rare studies focused on studying the influence on customer loyalty when a brand plays a different brand strategy. This paper aimed to reveal the relationship between brand strategy and customer loyalty through studying the case of Chanel. This paper focused on the research question: Does Chanel's brand strategy have an impact on its customer loyalty? Two major factors of brand strategy were used in this paper, which is brand image and brand awareness. SWOT method was used to examine Chanel's overall performance from both internal and external dimensions.