History of Chanel

The Chanel Parisian fashion house was founded by Gabrielle "Coco" Chanel in 1909. What would become one of the most influential fashion lines began as a shop on the ground floor of an apartment in Paris. The apartment house was known to be a meeting place for elite French hunters who would bring along their mistresses, to whom Coco would sell her hand made hats. During this time, Arthur Capel, one of the hunters who frequented the apartment building, helped Coco open a store at 31 Rue Cambon in 1910. By 1913, Coco had opened two additional boutiques where she introduced simple women's sports wear in response to what she viewed as the detestable, opulent fashions seen in these resort towns.

Coco's fashions were soon influenced by the working women during World War I. Women were needed to work in factories and needed clothing that could withstand difficult working conditions. As a result, when Coco opened another store in front of the Hotel Ritz Paris, she met the demand for a new women's wear style by selling flannel blazers, straight linen skirts, sailor tops, long jersey sweaters and skirt jackets. Coco soon became known for her simplicity of style as well as her skills as a meticulous couturier. In both 1915 and 1917, Harper's Bazaar stated that Chanel was "on the list of every buyer." Her 31 Rue Cambon location showed simple dress and coat ensembles, evening dresses, and suits. By the 1920s, Chanel began to produce beaded gowns and the classic Channel suit, which was known as the "new uniform for afternoon and evening..."

In 1921, Coco Channel expanded her line to include fragrance, with the introduction of Chanel No. 5, created by Earnest Beaux. The fragrance was named after Coco's lucky number, 5, and was an instant success. In 1924, Parfums Chanel was founded by Pierre Wertheimer. Though the perfume business bore the Chanel name, Coco herself only received 10% of the profits, with the majority of the profit going to Wertheimer and businessman Theophile Bader. During this same time, Coco introduced her first piece of costume jewelry, a pair of pearl earrings. In 1925, Coco introduced the signature Channel cardigan jacket and the 'little black dress.' Though her couture business was successful, the business relationship between Coco and Wertheimer began to show strain. Coco sued to create a new business deal, allowing her more than 10% of the Parfum Chanel profits, but ultimately lost her case.

In 1939, with the beginning of World War II, Coco decided to retire and moved into the Hotel Ritz Paris with her new love, Nazi officer Hans Gunther von Dincklage. In 1940, with France under Hitler's control, the Nazis made the Hotel Ritz their French headquarters. Wertheimer fled to the United States, but left Parfums Chanel in the hands of an "Aryan proxy." Rumors began to spread painting Coco Chanel as a Nazi sympathizer. In fact, Coco was arrested after the liberation of France and charged with abetting the Germans, however Winston Churchill came to her defense and she was released. Though she was released, Chanel felt her name was sullied and she fled to Switzerland. During her time in Switzerland, Coco began her own line of perfumes. Wertheimer felt Coco was infringing on their original deal, but the pair settled out of court with Chanel receiving $400,000, 2% of all Chanel parfum products and limited rights to sell her own perfumes in Switzerland. Eventually, Coco sold the rights to her name as a perfumer to Wertheimer in exchange for a monthly stipend.

In 1953, Chanel returned to Paris and brokered a deal with Wertheimer that gave him complete rights to all Chanel products in return for financial backing. Soon Coco Chanel was once again a successful fashion label. During this time, Coco reintroduced the classic Chanel suit as well as the now famous chain-handled, quilted leather handbag. The new line was so successful, that Chanel received the Fashion Oscar of 1957.

Coco Chanel held the title as 'Chief Designer' until her death on January 10, 1971, at the age of 87. Alan Wertheimer took over the company in 1974. In 1978, the Chanel company launched its first ready-to-wear line, in addition to a line of accessories. Wertheimer invested millions in advertisement to reinvigorate the exclusivity of the label. In 1983, Karl Lagerfeld took over as chief designer for Chanel. His new designs and shorter cuts helped open more than 40 Chanel boutiques world wide. In 1984, Chanel launched a fragrance in honor of Coco Chanel, named Coco. The first Chanel watch debuted in 1987.

During the 1990s Chanel was a world leader in the fragrance business and the lines of watches, shoes, cosmetics, high end clothing and cosmetics were expanded. Chanel also opened additional boutiques and began to purchase other fashion companies. In 1999, Chanel launched its first

skincare line, Precision, and a line of sunglasses and eyeglasses. 2000 saw the launch of its first unisex watch and the launch of a new fragrance, Chance. Renowned Parisian fashion house, Hermes, and Chanel merged in 2002, making them one of the most powerful fashion companies in the world. The merger proved to be enormously successful for Chanel. By 2003, Chanel opened a second shop on Rue Cambon, a 2,400 square foot boutique in Hong Kong and a $50 million building in Tokyo, Japan.

Coco Chanel is known as one of the most chic houses in haute couture, specializing in luxury clothing, fragrance and accessories. Chanel is credited with dressing "the modern woman in clothes for a lifestyle." Recognized for its quilted fabric and leather, inspired by the jackets of jockeys, Chanel introduced many classic pieces of fashion, such as the classic Chanel suit, the little black dress, and the quilted leather handbag with the signature Chanel logotype of interlocking Cs. With over 200 boutiques worldwide, women everywhere view Chanel as an icon of elegance, luxury and originality.