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As for Chanel, the breakdown is even more obscure, as the company is privately held and does not disclose financial performance figures. Having said that, Biz Journals speculatively broke down the brand’s potential earning by category several years ago, finding that its fashion division – which is largely made up of handbags – likely amounted to upwards of 50 percent of the brand’s $2.3 billion and $3 billion annual revenues , with the remaining portion being derived from cosmetics. More recently, MainFirst estimated that Chanel’s 2015 net income amounted to €1.2 billion, or about $1.3 billion, on revenue of €6.5 billion. We can likely also gauge the significance of Chanel’s handbag business based on its distribution model. For example, the Paris-based design house currently only sells fragrances and other beauty products online. While its President, Bruno Pavlovsky, claims this is a calculated move focused on upholding the integrity of the shopping experience (“Fashion is about clothing, and clothing you need to see, to feel, to understand.”), there is arguably something else at play here. Chanel very well may be limiting its online selection to the most frequently shopped items, meaning: accessories. This is not to say that the brand’s clothes do not sell.
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