Chanel shifts global media account from WPP to OMG after 20 years

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Chanel has shifted its global media account from WPP to Omnicom Media Group. The luxury fashion house has been working with WPP for 21 years.

In response to MARKETING-INTERACTIVE, a Chanel spokesperson said that the brand was particularly impressed by OMG's strategic approach, understanding of the brand, and ability to organise around its requirements. "We thank WPP for their valued counsel over the past two decades supporting our growth," Chanel's spokesperson added. Chanel also confirmed that the appointment is effective January 2022.

Asia Pacific raked in annual revenue of US$5,257 million for Chanel last year, forming the lion's share. Meanwhile, Europe and the Americas amassed US$2,885 million and US$1,966 million in 2020 revenue respectively. Globally, it had a revenue of US$10.1 billion in 2020, an 18% drop from 2019. While its operating profit dropped by 41.4% in 2020 at US$2,049 million, Chanel's positive net cash balance for the year reflects the brand's financial discipline and trading recovery.

The year 2020 also saw the brand invest US$1,360 million in brand support activities. The luxury brand said it "demonstrated strong resilience across all product lines" last year, despite a highly disrupted environment that led to the closure of its boutique and manufacture network, as well as the suspension of international travel. The final quarter of the year saw an improvement in sales trends as a result of the brand's creativity and the support of its strong local customer base, Chanel said in its financial report.

Meanwhile, this marks the second big win for Omnicom. Just last month, Mercedes-Benz consolidated global marketing communications duties with Omnicom Group following a six-month selection process. The appointment takes effect from January 2022 under the name "Team X". Team X will be tasked primarily with the further development of digital and data-based media, as well as brand and performance marketing activities, which assure the customer-centric approach to all target groups along the customer journey - online and offline.

Separately, Chanel lost a trademark suit against Huawei earlier this year after the General Court of the European Union ruled that their logos bore no similarities. This comes nearly four years after the tussle first began in 2017 when Huawei applied to register for a mark with the European Union Intellectual Property Office in September for computer hardware.

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Photo courtesy: 123RF

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