The Creation of Coco Chanel's Empire

As the brand Chanel's yearly revenue increases, it has amounted to roughly $17.2 billion in 2023.  Chanel's timeless perfume, Chanel No. 5, was sold 10 million times worldwide. On the Chanel website, a Chanel No. 5 costs $176 which, after the math, means that the Chanel brand made 1.76 billion dollars of this revolutionary perfume. But how was this brand created, and what makes it so successful? Could this huge luxury brand have been created by an orphan- one abandoned by her father after her mother's death?

From Sleek

Creating Coco Chanel

On August 19, 1883, Gabrielle Bonheur Chanel took her first breath in Saumur, France. She was born into a humble family with her mother, Jeanne Devolle, who worked as a laundress, while her father, Albert Chanel, traveled selling clothes. Thus, as Chanel grew up, she was constantly surrounded by clothes. Life was also hard as she was one of six siblings-two older than herself and four younger. However, when Chanel turned 12, she lost her mother due to tuberculosis, a disease that starts in the lungs, and spreads to other parts of the body if not treated properly. After her mother's demise, Chanel's father abandoned her and her siblings, sending her to Aubazine Orphanage, an orphanage run by nuns. Although Chanel later reports being miserable there, she picked up a skill that she would use for the rest of her life: sewing and stitching. She soon started making different articles of clothing that varied from hats to dresses. 

This family photo of Gabrielle Chanel and her 6 siblings is from oliviakush.wordpress.com

At age 18, Chanel was given the choice to stay at the orphanage where she grew up and become a nun or go out into the real world. Making the right choice, she moved to Moulins, where she attended the Notre Dame Finishing School while living in a convent. During this time, she dreamed of living a rich and luxurious life, much like the ones of upper-class ladies. 

From onmilwaukee.com is this picture of Notre Dame finishing school convent in the 1860s

At age 20, with the help of the Mother Superior from Norte Dame, Chanel found a job as a seamstress at a draper’s shop on Rue de l’Horloge. During this time, she lived in a room above the shop and took on a weekend job at a tailor’s, where she specialized in altering cavalry officers’ uniforms. As she altered soldiers' uniforms, she soon gained attention not only for her exceptional sewing skills but also for her striking beauty. Soon one of the soldiers invited her to a live musical performance. This was the first time that Chanel was in the same room as the elite class that she aspired to be a part of. As the show went on, she noticed that amateurs were on stage. This led to her getting a job performing in clubs around Vichy and Moulins. It is believed that this is how Chanel got her famous nickname, Coco, as she would often perform a song with the lyrics "Qui qu'a vu Coco?" or "Has anyone seen Coco?" Although this is the commonly accepted story Chanel herself says that the name was an abbreviated version of the word "cocotte," or "kept woman" in French. 

From weebly.com is this picture of Coco Chanel performing

That same year, in one of the clubs she performed at Coco met Etienne Balsan, a French socialite. She soon became his mistress and moved into his chateau, where Balsan would shower Chanel with extravagant gifts and fashionable dresses. However, Chanel soon stopped wearing the clothes that Baslan bought her and she became increasingly irritated that the fashionable clothes for women were not comfortable or functional. Most dresses had corsets that made it hard for women to breathe while wearing them. Chanel decided to act and tailored one of Balsan's suits to her own body and wore it to an event that they attended together. For this, she got a lot of attention and she continued to wear clothing commonly worn by men.

From medium.com is this picture of Coco Chanel (left) wearing men's attire with Etienne Balsan (center) next to her.

Balsan, noticing Chanel's interest in sewing and designing clothing, gave her a room in his chateau where she could make hats. Although Balsan saw this as merely a hobby Chanel strived to make this a business. However, to make this dream come true Chanel needed both a male business partner and sponsors to get the business started. Despite her connections with high society through Balsan, no one was willing to take the risk of funding her-until, at age 26, she met a wealthy Englishman called Arthur Edward "Boy" Capel. Capel and Chanel first met at one of Balsan's parties, as Capel and Balsan were friends. The introduction to this relationship was also the beginning of the House of Chanel. 

Photo of Chanel (left) and Capel (right) from medium.com

The Initial Survival of the House of Chanel

In 1908 Chanel left Balsan and started an affair with Capel. Capel provided her with everything she needed to start her business, providing not only money but also experience. In 1910, Chanel's revolutionary designs made the store a success and soon celebrities started wearing her clothing. As Chanel's goal had always been to become a member of the elite class she started researching where to open her next shop. It had to be a location that was accessible to the rich, as they were the ones who could afford to buy more items. She soon found out about a place called Deauville where she and Capel went on a trip. Although Capel thought that it was a sweet little trip, for Chanel it was an opportunity to pick out a place for her next shop. And in 1913 Chanel got what she wanted and opened a shop in Deauville. Chanel's first collection was mainly based on jersey fabric, which before this had been mainly used in men's underwear. 

A photo from agnautacouture.com depicts a woman wearing jersey fabric like the ones used in Chanel's daily wear collection during World War 1.

This was the first time when women wore dresses that were both stylish and comfortable. Chanel's collection was a hit; however, the spotlight was taken from her as conflict began in Europe. 

As the war started Chanel's hopes and dreams for her business came crashing down. With men off fighting, women had to join the workforce, making traditional dresses impractical. Recognizing this change, Chanel started a daily wear collection for women which was, once again, made out of jersey material. This collection was a big hit and demonstrates Chanel's strategic way of thinking as she turned barriers into advantages to further her career. 

In 1918 Chanel's professional life and business were going great however she soon found out the terrible truth. Capel had to get married to the daughter of an English aristocrat and due to his background, there was no escaping this marriage. After Capel's marriage, he and Chanel continued their romantic and professional relationship. Chanel had now become Capel's mistress but this didn't last long. In 1919, when Capel was going to visit Chanel, he died in a car crash. Chanel was heartbroken but mainly she was enraged with the aristocrats that, she believed, separated her from Capel. She wanted revenge. 

After Capel's death, Chanel needed a new business partner as women were not allowed to have their own establishments and Capel was always the one who took care of the paperwork which Chanel had no idea how to manage. She soon found one, a French businessman called Pierre Wertheimer.

In 1921, about 2 years after Capel's death, Chanel launched her new sensational perfume, Chanel N°5. Unlike most popular perfumes of the time, Chanel N°5 mixed several scents together, which made it such a success. This perfume soon became the smell and indication of wealth. Ernest Beaux, one of the best perfume makers in France, helped create the fragrance. Chanel tried several scents made by Beaux and ultimately picked the fifth one. This scent was a mix of jasmine and other flowers, more complex and mysterious than the simple perfumes available at the time.

The perfume was a major success but the agreement that she had signed with Pierre gave her only 10% of the profits from her own perfume. This unreasonable deal would be one that Chanel would fight against for the rest of her life. 

Picture of Pierre Wertheimer, Chanel's new business partner, from lemonde.fr

In 1925, Chanel designed the commonly known logo of Chanel, the two interlocked C's. Soon after, in 1926 Chanel brought the idea of a little black dress to life. Evidently, Chanel was not the first to design dresses with black however before the little black dress, the color black was mostly used during periods of loss or for professional occasions. the reason why Chanel's little black dress was such a success was due to how practical it was as it could be worn on many different occasions if it was styled properly. 

Chanel also started dating the Duke of Westminster, which led to her being invited to several royal parties. Many believe that this was the sole reason she dated him, as these parties made her close to many of the higher class. She was known to have befriended Winston Churchill himself. After some time, the Duke of Westminster asked her to marry him; however,r Chanel refused saying "There have been several Duchesses of Westminster—but there is only one Chanel!”

Picture of Coco Chanel (left) and the Duke of Westminister (right). Picture from tatler.com

The Downfall of Chanel

In 1940 Chanel was forced to shut down her stores as the Nazis came to France. During World War 2 Chanel was living amongst the Nazis since she stayed at Hotel Ritz, the headquarters of the Nazis. Living with the enemy, she got involved in a relationship with a senior German officer called Hans Gunther von Dincklage. It is commonly accepted that Chanel did work with the Nazis as she took part in Operation Modelhut, where the Germans tried to convince Winston Churchill to sign a peace treaty. They sent Chanel on this mission because she knew Winston Churchill personally. This involvement with the Nazis kept Chanel's stores open during the war, unlike most other businesses which were destroyed.

Although there are different beliefs as to why Chanel might have worked with the Nazis the two common ones are that, one, she did it to save her nephew who was imprisoned by the Germans and to keep her business going, or, two, because she was loyal to the Nazis as she was antisemitic herself. There is no true evidence that Chanel was antisemitic but many hold the theory to be true. At the time Nazis were also planning on passing a law that would not allow any Jew to own or be a partner in a business. This would help Chanel's case as Pierre Wertheimer, her business partner who got 90% of all profits from the Chanel No. 5 perfume was Jewish. This did not work out in Chanel's favor as Pierre was two steps ahead of her and transferred the shares of the business to his Christian friend during the war. Once the war ended his friend simply gave him back his shares and the profits. This is often regarded as one of the reasons why Chanel might have worked with the Nazis, as well.

From dpma.de

When the war ended, after six years, Chanel ended her relationship with Hans Gunther von Dincklage however rumors of her working for the Nazis spread rapidly. Chanel was soon arrested for being a German spy but interestingly enough, she was not tried for treason due to a "lack of evidence." Considering that German officers had testified confirming that Chanel was in fact a spy that statement was simply a lie. A widely believed theory suggests that Winston Churchill intervened to protect her, as she possessed sensitive information about elite figures. Of course, in this theory, she would also use her own money to secure her safety afterward. Using her considerable wealth she paid newspapers and magazines not to publish anything about her relationship with the Nazis. However, she could not pay anybody to restore her shattered reputation. The House of Chanel was in ruins so Coco decided to move to Switzerland and stay in hiding.

As she was in hiding she examined the growth of fashion. Christian Dior's popular designs were now worn by the wealthy and elite. His designs enraged Chanel as they were made simply to look pleasing and not comfortable at all. She said "Dior does not dress women. He upholsters them."

From elledecor.com picture of Christian Dior (center) and six of his models with his new A-line dress design.

Abhorring Dior's designs Chanel couldn't help but come back into the fashion world. And, quite interestingly, the person who helped her make a comeback is Pierre Wertheimer, who Chanel tried to sue, unsuccessfully, and nullify a contract with. Recognizing that working with her would ultimately help him so in 1954 at age 71 Chanel reopened her shop after 15 years of hiding. When she came up with her first collection the people of France attacked her calling it a disaster. Nobody had forgotten about what had happened during the war and they would not forgive her.

Soon enough Chanel's designs traveled to America where people were dying to get one. They either did not know about Chanel's relationship with the Nazis or did not care. Chanel's designs were exactly what Americans wanted to wear and soon celebrities were wearing Chanel's clothes.

At age 75 Chanel launched a new design of the classic tweed suit. This revolutionary design is still popular today and was extremely successful at the time as well.

From ldnfashion.com picture of 4 women wearing the classic tweed suit.

House of Chanel Today

Chanel died single on January 10, 1971, at age 87. Hundreds gathered at the Church of the Madeleine to say their final goodbyes to the fashion icon, with many mourners wearing Chanel suits as a tribute. After Chanel's death fashion designer Karl Lagerfeld took her place to continue her legacy and the House of Chanel. The Chanel company is still owned by the Wertheimer family to this day and has a net worth of about 29.6 billion dollars. Chanel's life is inspirational as she became a famous fashion designer when she began life as an abandoned orphan. Throughout her life, Chanel always put her career first and did not hesitate to make the decision that would bring the best outcome for her business. But most of all it is inspirational that she stuck with her motto that "luxury must be comfortable, or else it is not luxury" throughout her whole life. Many may view her as overly-ambitious, cold, hostile, and apathetic however I believe that she knew what her priority and goal was and she did not stop until she reached it. 

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