With the addition of a new watches and fine jewellery space, Chanel has made a definitive statement on the future of luxury retail with the significant renovation of its landmark boutique at Shanghai’s Plaza 66. Going beyond a mere refresh, this strategic investment- described by an executive as an essential moment- solidifies the brand’s profound commitment to the Chinese market.
 
Chanel fashion and Chanel SAS’s president Bruno Pavlovsky, affirmed to FashionNetwork.com in an exclusive interview the location’s importance, calling it “one of the key boutiques that we have in the world.” The primary objective of the renovation is to optimise the client journey, adapting to the post-pandemic trend of clients returning to high-contact physical retail spaces.

The Plaza 66 boutique is positioned as Chanel’s strategic core in China, focusing intently on “offering the best of Chanel.” The location holds unparalleled strategic value, standing as one of Chanel’s most vital global boutiques, consistently ranking as one of the top-performing locations in the country, and situated in one of the most commercially active luxury malls.
 
Designed by renowned architect and long-time Chanel collaborator Peter Marino, this major renovation is a dynamic expression of Parisian refinement and house codes. The stunning, three-storey space offers a truly luxurious shopping experience, featuring expansive displays of ready-to-wear, bags, and shoes, and introducing a new, exclusive Watches & Fine Jewellery boutique.

The space is meticulously crafted to equally serve the brand’s two core client segments: established top clients and new patrons making a singular purchase. The aim is to ensure all visitors encounter the best service possible, a philosophy signifying the highest degree of sophisticated and meaningful brand engagement.

 
Chanel employs a differentiated strategy across its three key Shanghai locations- Plaza 66, IFC, and Peninsula- consciously avoiding a standardised approach. While Plaza 66 and IFC function as the primary high-traffic hubs, welcoming the majority of the brand’s clientele, the Peninsula location is positioned as a unique destination boutique. The latter store caters specifically to traveling VICs seeking a more intimate, less conventional experience, described metaphorically as a “little chain” to connect with these clients. The unifying principle across the entire network is the “one boutique is one story” model, which ensures that each location narrates a distinct, city-relevant narrative, reinforcing its role as an experience generator rather than a simple replication.
 
The brand’s success is anchored in dual strategic pillars: innovation and emotion. Chanel firmly asserts it “never replicates” a boutique; and brings genuine value to the local context rather than engaging in a mere competition for size. “We never replicate,” said Pavlovsky. “Every market is a specific market with a dedicated brief. For each boutique, we sit down with Peter Marino and the team to ensure the design is adequate for that city and its context within the mall. We are not interested in competing to have the biggest boutique. Our focus is purely on what is best for our client- what are their expectations, and what do they want to see from Chanel. What we have achieved in China, through this dedicated approach, is our great fortune and the true centre of our success.”

 
This focus on bespoke design is also mirrored in the launch of the Chanel & Moi initiative, deemed “key” and “strategic” for cementing future client relationships. This program transforms previously “invisible” after-sales services into “visible” experiences, allowing clients to observe craftspeople and technicians working on their products. By validating the importance of the aftercare moment alongside the purchasing moment, the brand fosters long-term relationships built on trust and consideration, ensuring clients feel “taken into consideration,” beyond the initial sale.
 
Pavlovsky says, “The Chanel & Moi initiative is extremely important for us and for the House of Chanel. Previously, this essential service was largely invisible. By bringing everything under the Chanel & Moi banner, we aim to make this dedication to service visible to our clients, while simultaneously making our teams proud to deliver it.”

By fostering an environment where clients feel truly “taken into consideration,” this approach is earning deeper trust, allowing clients to feel comfortable raising concerns or discussing product changes. This positive shift is viewed not as an overnight transformation, but as a continuous “journey” that has placed the brand in a significantly better position than it occupied just two years ago, with continuous improvements expected in the coming years.

 
The brand is confident that its current strategy is moving in the right direction, evidenced by its visible results. Crucially, this positive momentum is heavily amplified by the Chinese market, where the local team is lauded as a “super activator.” This team’s exceptional ability to implement and embody the client-centric strategy ensures that the desired level of customer engagement is being realised efficiently. In summation, Chanel is relying on sustained effort, the strategic visibility of its services, and superior local execution in markets like China to build stronger, deeper client relationships that secure its position for the future.
 
Chanel maintains an optimistic outlook for the remainder of 2025 and into 2026, driven by its positive business performance. However, according to Pavlovsky, the brand’s formula for sustained success is measured overwhelmingly by client experience and satisfaction. He highlights that offering the best experience makes the sales process a “follower”- meaning revenue naturally tails exceptional service.
 
Consequently, Chanel’s strategy is focused on consistently delivering superior engagement and products to reinforce the brand’s unique identity in fashion and luxury. Despite facing an economic environment that is “not always easy,” Pavlovsky is confident in the performance of the Chanel teams, making their positive forecast for the future robust.

By Sissi Chu