INTRODUCTION Within our FRAGRANCES & BEAUTY activity, HOW WE MEASURE BRAND EQUITY we have built in-house creative teams and In order to measure brand equity, we carry out annual designers in Paris; integrated research and studies of consumer perceptions of our brand. Each development activities in Paris, New York, study takes into account a large number of consumers and Tokyo; and fully owned production across all of our key markets. facilities north of Paris. Our focus on the long term means we can take a slower, The studies analyze brand perception according to more deliberate approach to new product detailed criteria such as saliency (brand awareness), development. The fragrance market is highly value (what qualities the brand represents for competitive, driven by hundreds of new consumers), strength (to what extent the brand is product launches every year. However, we loved by consumers), and desirability (to what extent do not believe this rhythm of new product the brand is “for me”). launches is sustainable for the CHANEL The company has conducted brand equity studies brand over the long term. For this reason, for over 25 years. The results are analyzed in detail we introduce new fragrance products, on each year and discussed among the brand’s top average, every 10 to 12 years. This ensures management, laying the foundation for our key we have sufficient financial and human strategic decisions. resources to build our brands over the long term. For example, we launched the new GABRIELLE CHANEL FRAGRANCE 12 years after COCO MADEMOISELLE. The result of We have been able to make some significant this long-term brand vision is that we have investments for the long term over the last three brands in the top five worldwide. few years across all our activities. Focusing on the long term has also meant we Upstream in the FASHION activity value chain, can deliver products that are both desirable for example, we have invested in a number and sustainable for our customers. of manufacturing and production sites. One aspect central to the development and These are essential for CHANEL, but also growth of our WATCHES & FINE JEWELRY for the luxury sector as a whole, to thrive — activity has been the consolidation of all from the footwear manufacturer Roveda aspects of watch and jewelry making. in Italy to the Bodin-Joyeux tannery in France and the cashmere producer Barrie Knitwear Investing in our own horological manufacturing in Scotland. capabilities in Switzerland and an integrated fine-jewelry workshop on Place Vendôme All these production companies are part was a strategic decision that strengthened of an ecosystem, one we have created for our authenticity. the European luxury-fashion industry to deliver outstanding creations, but also one that enables us to ensure the long-term sustainability of specialist industries that might otherwise disappear.