Chanel is a well-known and popular luxury fashion brand, which explains why investors would like to buy Chanel stock. While the company does not have a publicly-traded stock, there are other ways to invest in the company. In this article, we will learn about how to invest in Chanel.
Does Chanel have a stock?
No, there is no Chanel stock. This can be upsetting for brand advocates but you can always shop the company’s products as a way to show your support.
Chanel's sustainability bond
To finance its ambitious sustainability program, Chanel has launched a sustainability bond that allowed outside investors to be a part of the brand for the first time. Their bond raised 600 million euros in 2020. The bonds are divided into two tranches. The first tranche, worth 300 million euros, matures in July 2026 and offers an annual coupon of 0.5 percent.
It also offers a 50 basis point cash premium payment at maturity if the luxury brand fails to meet its target of transitioning to 100% renewable electricity in its operations by 2025. The second group of 300 million euros will mature after five years (July 2031) and will pay an annual coupon of 1 percent.
If at the maturity date, Chanel has not achieved the carbon reduction goals outlined in the contract and 75 basis points cash premium will be paid to investors. Take note of this move from Chanel as a reminder that even the most private companies can sometimes offer public market opportunities.
Can you invest in Chanel stock?
No, as mentioned earlier, because they are not publicly traded, you cannot invest in Chanel stock. As a retail investor, you cannot invest in Chanel. Chanel is a privately-held company, meaning that it is not traded on any public stock exchange.
Usually, there are a few ways to indirectly invest in companies that aren't publicly traded. Some of these strategies include:
- Investing in a company that owns a stake in the business
- Investing in a company that licenses the brand
- Buy shares of a majority stakeholder
- Invest in the suppliers of a business
Evolved By Nature is one such company that has been acquired by the Chanel name for its luxury eco-friendly skincare products. If you are a venture capitalist, you may be able to become an early investor. This is a company that has the potential to become a Chanel supplier. Each of these options has its own set of pros and cons.
Ultimately, the best way to invest in Chanel depends on your individual goals and preferences. Do your research and consult with a financial advisor to figure out which option is best for you.
Even with these extra options, it is unlikely you will be able to find an investment opportunity that offers the same potential returns as investing in a publicly-traded company. Chanel is also privately-owned. You'd have to know the owners well if you want to even consider investing in the brand.
Who owns Chanel?
The Chanel brand is owned by Alain and Gerard Wertheimer, the grandsons of the company's founder (Pierre Wertheimer). Chanel is one of the few luxury brands that is still family-owned. To gain equity of Chanel directly, you'd have to negotiate and buy the brand from the grandsons themselves.
Even if you have enough capital to invest, it is highly unlikely that these two brothers will want to sell any equity. The Chanel brand has been the guardian of their family's generational wealth and there's no evidence to show that they are ready to let that go.
What exactly is Chanel anyways?
Chanel is a luxury fashion brand that was founded in 1909 by Gabrielle Chanel and Pierre Wertheimer. The company specializes in ready-to-wear clothing, accessories, fragrances, and makeup.
Chanel is one of the most iconic luxury brands in the world and has been worn by some of the most famous celebrities including Marilyn Monroe, Audrey Hepburn, and Grace Kelly. Chanel is also known for its little black dress, which was popularized by Audrey Hepburn in the 1961 film Breakfast at Tiffany's.
The company is headquartered in Paris, France, and has over 300 boutiques worldwide. Chanel is a privately-held company but still beloved by fashion enthusiasts throughout the world.
How to invest in other luxury brands like Chanel
Since Chanel isn't publicly listed and it is impossible to invest in Chanel stock, this doesn't mean you can't invest in other luxury brands. These potential investments include:
LVMH (OTC: LVMHF)
The French luxury conglomerate owns over 60 fashion brands including Louis Vuitton, Christian Dior, and Givenchy. This can be an option if you are looking to invest in many of Chanel's competitors.
RH (NYSE: HR)
Restoration Hardware is a luxury home furnishings company that competes with brands like Pottery Barn and West Elm. The company has been growing rapidly in recent years and its stock has performed well as a result.
Ferrari (NYSE: RACE)
Ferrari is an Italian luxury sports car manufacturer. The company only makes a few thousand cars each year which helps to maintain its exclusivity. Ferrari's stock has been on a tear in recent years as the company expands its product lineup and enters new markets.
On top of investing in luxury brands that are similar to Chanel, you can also invest in luxury ETFs (exchange-traded funds). The two most popular luxury ETFs:
- S&P Global Luxury Index (INDEXSP: SPGLGUN)
- Amundi S&P Global Luxury ETF (ENXT: GLUX)
Chanel Stock: Summary
Investing in luxury brands can be a great way to diversify your portfolio. While potentially benefit from the growth of the luxury goods industry. Do your research and consult with a financial advisor to figure out which option is best for you.
Chanel, like other high-end fashion brands, has seen an uptick in sales in recent years as more and more people have become interested in luxury goods. The company is still privately held, so there is no Chanel stock to buy. However, you can invest in other luxury brands like LVMH, RH, and Ferrari.
You can also keep continuing to follow along with the company because they may eventually offer investment opportunities. Research Chanel well and look for a company that has been acquired or may potentially be acquired by the iconic brand.
Chanel is a loved brand and even if you can't easily invest in them, you can use their success as a case study for other potential investments. Stay tuned to the fashion industry and don't forget about the other amazing options in the luxury market. There are many ways to diversify your portfolio with high-end stocks.
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