In a bold and surprising move CHANEL debuts capsule of €1000 sneakers

1 min readUpdated Nov 27, 2017Nov 28, 20173:00 AM

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French luxury brand Chanel has launched a capsule featuring 500 pairs of €1000 (US$1185) sneakers to celebrate its takeover of French high-fashion streetwear retailer Colette.

Courtesy of Karl Lagerfeld, the sneakers are part of singer Pharrell Williams ongoing collaboration with Adidas Originals.

The resale value of the sneakers have shot up to $32,000 after 120,000 shoppers registered to buy them. The 500 buyers will be chosen by an independent ballot process.

Williams says he expects the resale value of the sneakers to go up to $40,000 as any of his merchandise is known to resell for multiple times its value. For example, his Adidas collaboration with his band Nerd is now going for up to $10,000.

There is also a philanthropic twist to the collaboration as Williams and Chanel plan on donating profits to the Chanel Foundation, which supports women’s empowerment.

It is one of the final collaborations for Colette with the department store set to close on December 20.

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What this means

Chanel's strategic move into high-end sneakers, albeit limited, successfully amplifies brand desirability and pricing power, pressuring rivals in the luxury-streetwear crossover space. Unlike Lululemon's focus on revamped retail spaces in Asia, this campaign uses digital scarcity and celebrity endorsement for massive impact. The instant surge in resale value for the €1000 sneakers demonstrates a robust appetite for exclusive, hyped products, far surpassing typical retail markups. This approach builds brand equity through perceived exclusivity, rather than broad market penetration, similar to Panpuri's targeted Asian expansion. The risk lies in maintaining perceived scarcity and demand for future, potentially larger-scale, luxury streetwear offerings. Watch for any subsequent, more accessible, Chanel or Adidas collaborations in the coming months.

Wei Zhang · Retail News Asia newsroom

Questions & Answers

What is the reason behind Chanel's decision to launch these sneakers?

Chanel launched the capsule collection to celebrate its takeover of the French high-fashion streetwear retailer Colette. The sneakers are also part of Pharrell Williams' ongoing collaboration with Adidas Originals.

How will the buyers of the 500 pairs of sneakers be selected?

The 500 buyers for the sneakers will be chosen through an independent ballot process. This selection method was necessary as 120,000 shoppers registered their interest in purchasing them.

Is there a charitable aspect to this sneaker collaboration?

Yes, there is a philanthropic element to the collaboration. Williams and Chanel intend to donate the profits generated from the sale of the sneakers to the Chanel Foundation, which supports women’s empowerment.

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