CHANEL

A Choice to Unlock US$222 Million

CHANEL Eyewear Erodes Brand Equity

Executive Summary

This is about your frames, specifically CHANEL acetate frames, and their US$222 million unseen contribution to brand erosion and customer disconnect.

In my 2024 CHANEL Diagnostic Assessment document, I pinpointed that I could find your hidden US$11 billion to help you become the world's most valuable luxury brand, including a simple 5%+ loyalty boost, creating over US$555 million in sustained organic revenue.

My instincts are unmatched in revealing the hidden opportunities to maximise luxury brands' growth potential. Ditching the standard playbooks, I rolled up my sleeves, dug deeper, and found clarity in one of my shared findings. This influenced CHANEL's 25% Quality Touchpoint score and 57th-place ranking among 184 global luxury brands.

My Two Findings:

  1. Price hikes illuminate a customer expectation gap (saddle stitching) never seen in a report.

  2. Customers seek the exquisite feel found only in Japanese acetate's quality, substance, and integrity.

Let me explain the hidden mystery of why Japanese acetate appeared in my report. And its direct traceable influence on CHANEL's overall brand perception and your 69% customer disconnect rate.

This deep dive and journey was inspired by my incredible wife. It will give you an enhanced understanding of customer psychology, a few surprises, and the fact that a single choice can have an oversized effect on carefully crafted perception, messaging, and emotional connection with brand elegance.

Why Acetate Matters

Acetate remains the most popular material for constructing high-quality frames, but are all acetate glasses the same? Well, no. I'll highlight the keys to what makes the world's best acetate frames and explain how a strategic decision impacts CHANEL to become the world's most valuable luxury brand.

My experience navigating the luxury field has taught me that seemingly small decisions can have far-reaching, unintended, unseen consequences for a brand's reputation and bottom line.

For instance, a US$30 billion desirable brand's well-intentioned cost-savings program inadvertently damaged customer trust, leading to over US$1.5 billion in customer disconnect. That was a 30X impact above the cost-saving program.

My Analysis Reveals the Unknown

I found the hidden links between their strategic choices (think machined vs. saddle-stitched handbags) and their 30X unintended impact. Once traced, it allowed us to protect their bottom line and increase long-term brand value and growth.

CHANEL’s Unknown Unknowns

Comparing CHANEL's glasses to those of other luxury high-end brands highlights a costly hidden impact on quality and customer experience when CHANEL aspires to reach the uber level of customer excellence and expects to sustain its ultra-luxury prices while missing the everyday fully accountable customer touchpoints.

The 'A' Tier Difference

Acetate—what it is, how it's made, the differences in the manufacturing process—is how a single material choice in CHANEL glasses connects CHANEL becoming the world's most valuable luxury brand.

Most customers are unconsciously aware of what makes a particular pair of acetate frames exquisite, and so place greater trust in a luxury brand's reputation. Therefore, your customers assume buying a branded CHANEL pair of glasses will be a high-quality, memorable product experience. This may be true for handbags and clothing, but it's not so for CHANEL eyewear.

The CHANEL Eyewear Acetate Reveals One Of Your Achilles Heels.

Let me bring together my investigation and share my point of view on how one choice diminishes your unseen growth to become the world's most valuable luxury brand.

Like many other luxury brands, CHANEL's frames rely on EssilorLuxottica, which has factories in Italy and may carry the "Made in Italy" label. However, it also hides an invisible, unreported secret.

Most global acetate production comes from either China, Italy, or Japan, with Japanese acetate recognised as the absolute best.

You may also know that acetate is made from wood pulp and cotton fibres, primarily cotton cellulose fibres. And because it’s a natural product, acetate possesses unique properties, making it an excellent frame material.

A few reasons include that they're very soft and natural against the skin, it is a hypoallergenic material, can be produced in unlimited colour combinations and styles, and are effortless to adjust to match the contours and curves of any face, making each pair almost a bespoke custom piece of art.

These and countless others make acetate significantly better as a raw material for luxury frames than injection-moulded plastics, the same material from which plastic toys are made.

Holding an injection-molded frame, it's immediately clear that it's incredibly plasticky. On the other end of the spectrum, holding a super high-end acetate frame is light-years away. It has a soft, tactile feel that is incredibly enjoyable to wear. This exquisite material's flexibility and satisfaction are unmatched.

Because of its high desirability and demand, acetate producers strive for higher yield while cost-cutting by deploying cheaper manufacturing processes. These never appear in reports but can be felt.

And here, between the low-end cheap plastic and highest-end "A" tier acetate frames, you have frames bearing CHANEL's brand.

These frames are made under licence by EssilorLuxottica, which uses lower-quality acetates for mass-scale production and, possibly, analysing customer feedback, cost-cutting manufacturing standards that inadvertently damage your customers' trust in CHANEL.

How Can You Tell?

If you are trying to determine which frames are better, the tell-tail sign to look out for is the touch. Feel the material's surface; the softer it feels to the touch, the higher the acetate quality used. You can feel the quality of the excellent acetate frames, and there are the more prominent features, such as the edges of the frames.

The way frames can be contoured. Do you see sharp edges? Do you see how well-cornered the edges have been polished? That shows excellent attention to manufacturing detail. Hand-finishing Japanese acetate frames to an uncompromisingly high standard achieves that level of craftsmanship.

From a high-quality frame to a lower-quality frame, the amount of hand finishing involved comes at a price. It is one of the main reasons customers are happy to pay a premium.

Ultra-wealthy buyers understand this. They expect nothing less than the absolute best possible level of craftsmanship.

CHANEL's frames, made by EssilorLuxottica, show that those corners are far from as pronounced or refined because lower-quality acetates are used. That information may be outside of CHANEL's knowledge.

However, many luxury frames on the market are entirely mass-produced. In that sense, a machine will just cut frame after frame after frame after frame. It goes down an assembly line until it is purchased by your end customers, non-the-wiser.

Only by hand finishing a frame can you achieve features like the sharp edges that I mentioned earlier. The attention to detail in these minor features clearly shows the difference between quiet luxury and mainstream automated production.

For simplicity, we can categorise acetate into quality tiers. In the lower tier, mainstream companies like EssilorLuxottica, Marcolin, Marchon, and Safilo exist, which generally mass-produce their frames. Note: You can always tell a mass-produced acetate frame from a hand-finished one.

The Strategic Fix

Part One

The Single Key To Unlock US$222 Million Growth

Did you know that the moisture and hardness of Chinese, Italian, or Japanese acetate differ depending on the production region? Japanese acetate will lose a maximum of two per cent of its moisture over time (your critical data point), as opposed to Chinese or Italian-made acetate frames, which lose up to 10 per cent of its moisture over time.

Why Does This Matter?

Over five years, CHANEL acetate frames lose much of their polished, glossy finish due to moisture loss. This issue is not just about dry and faded frames; it's about the increased disconnect rate and the influence on CHANEL's customers' perception. It’s why my wife's three-year-old CHANELS lost their Luster. CHANEL should have been advised to manage this category directly to your highest standards. The urgency of this issue cannot be overstated.

In my Executive Summary, I highlighted a 69% customer disconnect that hides a US$11 billion opportunity within CHANEL's customer experience across five key domains.

A single change in acetate transforms customer loyalty, increases trust by two-plus per cent, and adds over US$222 million in sustained organic growth.

However, the unseen 30X impact, estimated at over US$6 billion in preventable customer disconnect and reduced lifetime values, must be addressed at the source. It is, in essence, an expensive, licenced outsourcing decision. The impact on the CHANEL brand is significant, and addressing it can significantly improve the company's financial health. Reversed enables CHANEL to strengthen its luxury reputation further with minimal disruption.

However, am I able to validate my analysis and conclusions with independent evidence and audits?

CHANEL Customers

I’m disappointed with the quality of my CHANEL sunglasses. The logo came off within a week of purchase. The boutique said it needed to be repaired, but it’s been over a month since then, and I still haven’t received my sunglasses back. I expected something else from such a high-end brand.
— CHANEL Customer
I bought a pair of Chanel glasses, but the paint started crumbling after a few weeks. The optician ordered new pairs, but the same thing happened each time. Chanel’s customer service has been unresponsive for two months after I provided proof of purchase and pictures. That’s 500 euros wasted. I wouldn’t recommend buying Chanel glasses.
— CHANEL Customer

The Strategic Fix

Part Two

If left unchecked and overlooked, these silent quality issues further erode customers' trust, reduce brand equity, and, ultimately, reduce CHANEL's carefully managed luxury position. The analysis further illuminates possible miscommunication between teams and business units and an overreliance on existing suppliers to deliver flawless, high-quality standards as CHANEL's customers have come to expect.

Had you brought a pair of CHANEL glasses made from Japanese acetate that was equally five years old, we would have seen none of the same effects. They’d still be glossy, catch the light, and shine bright after five years of wear. This shows how acetate choice can quietly enhance and strengthen customer perception.

When you invest in a pair of luxury frames, you're not just buying a fashion statement but a long-lasting companion. Unlike CHANEL frames, which start showing signs of wear before five years, BARTON PERREIRA frames are designed to stand the test of time. They maintain their glossy, light-catching, and bright appearance even after years of use, proving their exceptional quality and craftsmanship.

Isn't this the kind of reassurance you want from your luxury eyewear?

When you're considering creating a pair of glasses, it's crucial to understand the materials used, even the adhesive and their impact on the product's quality. The CHANEL range is made by EssilorLuxottica, which uses a lower tier of acetate for its mass-production frame manufacturing. While they may be considered 'good,’ they miss the mark of true excellence offered by frames made by BARTON PERREIRA.

This Decision May Have Been Made In Innocence. But It Is Not Worth It

Let's take a closer look at BARTON PERREIRA, a brand that arguably produces the highest-quality acetate frames in the world. The frame I wear, the BARTON PERREIRA Domino, shown above, is a testament to their unique craftsmanship. It's produced in a colour called ‘Matte Midnight’, a hue that I believe is one of the most exquisite frame colourways ever created. This is not just any acetate; it's a custom blend created exclusively for BARTON PERREIRA Dominos, showcasing their dedication to quality and uniqueness.

The best frame manufacturers in the world will commission acetate producers to produce acetate solely for them. BARTON PERREIRA's ‘Matte Midnight’ is one example of that. It's beautiful. The way they catch the light while not being glossy is breathtaking. Unlike CHANEL glasses, which become matte due to the acetate's moisture loss, it has an exquisite, purposeful matte finish. It's a masterpiece.

But what I want to draw your attention to with BARTON PERREIRA's Japanese-made frames is the beveling around the edge of the frame. These little details could only be made by skilled Japanese hands polishing Japanese acetate.

Japanese Acetate Is Renowned

…for its exceptional quality and craftsmanship for several key reasons:

  • Adherence to the most rigorous quality control

  • Consistent excellence

  • Superior hardness

  • Low moisture loss

  • And clarity that retains its shape and polish for a lifetime.

When the light hits it, Japanese acetate reveals its sublime sculpting, light swirling like that of a precious diamond. This seemingly small detail has a big impact. When someone catches a glimpse of your frame from that angle, they'll be captivated by the sharp, elegant glasses they see. They’ll know they are special.

Your Call to Action

When you compare the contours of CHANEL frames with those of the industry leaders, there's a world of difference. Japanese acetate frames' quality, craftsmanship, and softness immediately speak for themselves, both by touch and wear.

Frames made by Robert la Roche, l.a.Eyeworks, Portrait Eyewear, Akoni, Jacques Marie Mage, and, of course, BARTON PERREIRA: As soon as you put them on, you feel and know instantly how much better top-tier acetate frames are.

Very few luxury brands in the world hand-polish their frames to this level. CHANEL frames should aspire to be in that "A" tier. The Japanese acetate finishing, quality, and organic material essence carry an unspoken ultra-luxury feel. Exquisite frames like this would elevate the entire CHANEL brand without compromises.

CHANEL acetate frames will never be able to shine as brightly as the best. It is the result of one strategic decision. Such a small detail conveys an effortless sophistication that no logo can replicate.

You might not think it's such a big deal, but it speaks to your attention to detail as an individual.

But it's generally known as a good rule of thumb if you're looking for the best acetate frames to look for "Made in Japan”.

If CHANEL prefers the Italian-made moniker, there's only one "A" category Italian-made acetate frame manufacturer. It is not your strategic partner, EssilorLuxottica. Instead, it's Robert La Roche.

They may have flown under your team's radar or been overlooked, or existing long-term contracts or excellent strategic relationships may have prevented changes. The reasons are unimportant. However, no mass-produced "A" category manufactured of Italian-made acetate frame exists.

CHANEL’s Untouchable Reputation Should Be Your Priority

With everything said and done.

  • Is CHANEL's eyewear truly matching your brand's ambition and promise?

  • Is this what you aim customers to associate with your iconic brand?

I don't disrupt; I uncover the simple changes that yield extraordinary results by revealing the value hidden in a brand's unknown unknowns. From there, I empower luxury brands to unlock their hidden potential in ways they never imagined.

In my 2024 CHANEL Diagnostic Assessment document, I stated that I could help you unlock and become the world's most valuable luxury brand.

Saddle stitching and Japanese acetate are just two of your many hidden customer touchpoints that diminish the customer disconnect and impact more than US$11 billion in CHANEL value.

Let's work together to uncover these. This journey will reveal your hidden treasure map and your unique path for CHANEL's infinite growth.

I can illuminate the hidden to help CHANEL shine even brighter for discerning customers like my wife on your journey to becoming the world's most valuable luxury brand.

The Choice To Unlock This Potential Is Yours.