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Chanel Plans Second Half

Chanel is putting on a new face for fall, with a lineup that includes major treatment and foundation launches and an increased focus on advertising.

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NEW YORK — Chanel is putting on a new face for fall, with a lineup that includes major treatment and foundation launches, as well as an increased focus on advertising.

“We’re firing on all cylinders,” said Arie Kopelman, Chanel’s president and chief operating officer. “It’s a dynamic time for the brand. I think we will, without question, gain market share in the fourth quarter. We are very confident that we will have one of our strongest fall seasons ever.”

“Treatment continues to be one of our focuses, and we’re going to give it everything we’ve got,” added Jean Hoehn Zimmerman, executive vice president of sales and marketing for fragrance and beauté for Chanel. “Some companies are slowing down in the face of a more challenging economy. If anything, we’re becoming more aggressive.”

Part of that aggressive approach includes increased TV advertising for Chance — executives will spend 50 percent more on advertising this year than was spent at launch on Chance — and Chance will be promoted in 25 TV markets this fall, as opposed to 19 at launch. Also, a new print strategy has been implemented for skin care that includes only spreads. While none of the Chanel executives would talk numbers, industry sources estimated that the brand would be among the top three in advertising spending this fall.

Executives have high hopes for this September’s star skin care launch, Performance Anti-Taches Dark Spot Corrector. “This product corrects and prevents dark circles and spots from forming with an exclusive complex of narcissus bulb, Vitamin C and licorice,” said Annette Falso, vice president of new product marketing and training, Chanel fragrance and beauté. “It puts melanin into sleep mode, and it also will smooth out fine lines with encapsulated retinol, which is gentler on the skin.” It retails for $75 for a 30-ml. airless pump. The product will be supported with national print advertising in fashion, beauty and lifestyle magazines beginning in August. A packette mailer for Neiman Marcus customers also is planned. Falso wouldn’t talk numbers, although sources said the product could do upward of $4 million at retail in its first year on counter. Chanel’s color cosmetics and skin care products are available in about 750 department and specialty store doors, while its fragrances are available in about 3,000 doors.

Also in skin care, five new Precision cleansers are on tap for August. Broken down into three categories — Système Purete for oily skin, Système Eclat for normal skin and Système Hydratation for dry skin, with extract of Nebeday, an antipollution ingredient, central to all — the cleansers, each 5 ounces, retail for $38.50 apiece. Industry sources estimate that they will do upward of $5 million at retail in their first year on counter.

The brand also is planning to focus more heavily on the foundation category this fall with the launch of an ultrasheer foundation line, noted Elizabeth Mankin, vice president of beauté marketing for Chanel. Voile Universal, out in August, will include five shades and will retail for $38.50. It will be supported by a bounceback card; a department store version will send consumers into stores for a foundation sample, while a specialty store version will offer a powder sample. Also coming in August: Base Lumiere Illuminating Makeup Base, an oil-free gel designed to extend foundation’s wear by 25 percent. It will retail for $38.50.

Fragrance also will get a few new twists this fall, noted Laurie Palma, senior vice president of fragrance and Internet marketing. Packaging for the brand’s classic Chanel No.5 eau de toilette spray will be revamped slightly in September, with a spray-through cap for 1.2-oz., 7-oz. and 3.4-oz. sizes; a 2.5-oz. refillable spray without the spray-through cap also will be offered. The brand’s blockbuster launch from last year, Chance, will add a 0.25-oz. perfume for $90 and a body cleanser for $42.50, also in September. Sampling is also a key focus for Chanel’s fragrance team, Palma noted, with more than 135 million scented impressions across all of its fragrance brands slated for the year.

In addition to its second-half color story, the Chanel color line will add two limited-edition kits. The star product, Jeans de Chanel, is a compact with four shades of blue eye shadow, overprinted to resemble denim and finished with an overprinted gold Chanel logo. It will retail for $55. The second limited-edition kit, Collection Velours de Chanel, includes four matte lip shades and retails for $50. Both will be available in August.

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