FASHIONISTAS rejoice!

French luxury brand Chanel is set to open its first outlet in the Philippines by the first quarter of 2018.

In an interview with the BusinessMirror, Frederick M. Alegre, spokesman for the Department of Tourism (DOT), said Tourism Secretary Wanda Corazon T. Teo met with Herve Ducros, Chanel managing director for travel retail for the Asia Pacific region, during the recent Duty Free & Travel Retail Global Summit held from October 1 to 6 in Cannes, France.

“It will be a substantial investment,” said Alegre, who is also the assistant secretary for public affairs, communications and special projects for the DOT, adding that Ducros gave DOT officials a tour of Chanel’s store across the Palais des Festivals et des Congrès in Cannes.

Known for its double “C” logo, many of Chanel’s iconic products include the Chanel No. 5 perfume, the 2.55 quilted bag and the “little black dress”, among others. The fashion house was founded by fashion designer Gabrielle “Coco” Chanel.

Rumors of Chanel opening an outlet in the Philippines have long been circulating over the years, but nothing firm had ever panned out, until the DOT’s confirmation on Monday.

Alegre said the Chanel outlet will “open a section” at the Duty Free Philippines Corp. (DFPC) Fiesta Mall in Parañaque City, though he couldn’t say how large the retail area would be. “When we asked when it would open, Ducros said ‘most likely’ it will be in the first quarter of 2018, as they are being careful with how the store will look. If you’ve been to their stores abroad, Chanel has a certain luxury aesthetic that the brand strictly adheres to.”

“It’s not about the sales,” said Ducros, as quoted by Alegre, “but about a relationship [with our customers],” in reference to the care the brand is putting into its first store in the Philippines. Chanel cosmetics are currently sold at the DFPC outlets.

The DOT official said the brand will carry most of its coveted products, such as shoes, bags and apparel at the DFP store. At present, Chanel only sells its cosmetics in the Philippines via Store Specialists Inc. (SSI), a division of Rustans.

Quoting Ducros, Alegre said the Chanel brand “will definitely attract the big spending tourists, especially those from China”.

Many luxury brands are looking to Asia Pacific, especially to the Chinese market, to boost their flagging sales. The fashion house’s parent unit based in the Netherlands, Chanel International BV, reported a 35-percent drop in net income to $874 million in 2016.

“The entry of more global premium brands would be an additional incentive to attract more Chinese tourists, particularly from the luxury segment, to the Philippines,” Teo said in a news statement.

Clarins General Manager for Travel Retail for the Asia Pacific Region Alexandre Callens told Teo the brand will be expanding their presence in DFPC stores, with the recent approval and implementation of the visa-upon-arrival program for Chinese tourists in the country.

The news statement also quoted Callens as saying the French skin- care brand, a favorite among the Chinese, will also be deploying Mandarin speaking sales clerks who can explain the beauty products to customers.

In the first seven months of 2017, visitor arrivals from China increased by 29 percent to 545,725, ranking it third among the top source markets for tourists of the Philippines, after South Korea and the United States. Chinese tourists are known to enjoy outdoor destinations and shopping for premium brands.

The DOT said American snack maker Mondelez International will also increase its presence in DFP outlets. “Historically, it has been a best seller in the Philippine market,” Teo said. Popular Mondelez products sold at the DFP stores include Cadbury chocolates, Chips Ahoy cookies, Ritz crackers andFig Newtons, among others.

DFPC is a government-owned and -controlled corporation under the DOT. Last year its profit fell by 17 percent to P164.2 million.

In France Teo also met with SSI Group Inc. President Anton Huang; Jose Maria “Chim” Esteban, managing director of Regent Asia Group Ltd. and the first general manager of DFPC; and Robert Colombo of CMK, a liquor supplier.

Teo was joined at the duty free summit by DOT Undersecretary for Tourism Development Planning Benito C. Bengzon Jr., DFPC COO Vicente Pelagio Angala, DOT

Assistant Secretary Arlene Mancao and Alegre.

The summit is a flagship event of the Tax Free World Association (TFWA), wherein thousands of delegates gather in October for a week of business and networking. The much-attended duty free industry event combines a shop window for premium brands with an experts forum and the chance to network with key influencers.

This year, 515 companies registered as exhibitors based across 472 stands, an increase of 4.7 percent from 492 in 2016. This year’s show was expected to outdo last year’s 6,500 delegates and 6,400 visitors with the launch of the new Digital Village, which showcased how new technologies could be utilized in duty-free and travel retail.