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Chanel ( shə-NEL, French: [ʃanɛl] ) is an Anglo-French luxury fashion house founded in 1910 by Coco Chanel in Paris. It is privately owned by French brothers, Alain and Gérard Wertheimer, through the holding company Chanel Limited, established in 2018 and headquartered in London.

Chanel specialises in women's ready-to-wear, luxury goods, and accessories and licenses its name and branding to Luxottica for eyewear. Chanel is well known for its No. 5 perfume and "Chanel Suit". Chanel is credited for revolutionising haute couture and ready-to-wear by replacing structured, corseted silhouettes with more functional garments that women still found flattering.

Coco Chanel era

Establishment and recognition (1909–1920s)

The House of Chanel originated in 1909, when Gabrielle Chanel opened a millinery shop at 160 Boulevard Malesherbes, the ground floor of the Parisian flat of the socialite and textile businessman Étienne Balsan. Because the Balsan flat also was a salon for the French hunting and sporting élite, Chanel had the opportunity to meet their demi-mondaine mistresses who, as such, were women of fashion, upon whom the rich men displayed their wealth – as ornate clothes, jewellery, and hats.

Coco Chanel would sell them the hats she designed and made, thus earning a living independent of Balsan. In the course of those salons, Coco Chanel befriended Arthur "Boy" Capel, an English socialite and polo player friend of Étienne Balsan; per the upper class social custom, Chanel also became mistress to Boy Capel. In 1910, Boy Capel financed her first independent millinery shop, Chanel Modes, at 31 Rue Cambon in Paris. Because that locale already housed a dress shop, the business-lease limited Chanel to selling only millinery products, not couture. Two years later 1913, the Deauville and Biarritz couture shops of Coco Chanel offered for sale prêt-à-porter sports clothes for women, the practical designs of which allowed the wearer to play sports.

The First World War (1914–1918), affected European fashion through scarcity of materials, and the mobilisation of women. By that time, Chanel had opened a large dress shop at 31 Rue Cambon, near the Hôtel Ritz, in Paris. Among the clothes for sale were flannel blazers, straight-line skirts of linen, sailor blouses, long sweaters made of jersey fabric, and skirt-and-jacket suits.

Coco Chanel used jersey cloth because of its physical properties as a garment, such as its drape – how it falls upon and falls from the body of the woman – and how well it adapted to a simple garment-design. Sartorially, some of Chanel's designs derived from the military uniforms made prevalent by the War; and, by 1915, the designs and the clothes produced by the House of Chanel were known throughout France. In 1915, Chanel opened her very first Couture House in Biarritz, France. She had 300 employees and even designed her first line of Haute Couture.

In 1915 and in 1917, Harper's Bazaar magazine reported that the garments of La Maison Chanel were "on the list of every buyer" for the clothing factories of Europe. The Chanel dress shop at 31 Rue Cambon presented day-wear dress-and-coat ensembles of simple design, and black evening dresses trimmed with lace; and tulle-fabric dresses decorated with jet, a minor gemstone material.

After the First World War, La Maison Chanel, following the fashion trends of the 1920s, produced beaded dresses made popular by Flapper women. The simple-line, 'flat-chested' fashions Chanel couture made popular were opposite of the hourglass figure fashions of the late 19th century – the Belle Époque of France (c. 1890–1914), and the British Edwardian era (c. 1901–1919). Chanel used colours traditionally associated with masculinity in Europe, such as grey and navy blue, to denote feminine boldness. Chanel clothing often featured quilted fabric and leather trimmings; the quilted construction reinforced the fabric, design, and finish, allowing the garment to maintain its form and function while worn. An example is the woollen Chanel suit – a knee-length skirt and a cardigan-style jacket, trimmed and decorated with black embroidery and gold-coloured buttons, often accessorised with two-tone pump shoes, a necklace of pearls, and a leather handbag.

In 1921, to complement Chanel's clothing lines, Coco Chanel commissioned perfumer Ernest Beaux to create a perfume for La Maison Chanel. His perfumes included the perfume No.5, named after the number of the sample Chanel liked best. Originally, given as a gift to clients, No.5's popularity prompted La Maison Chanel to offer it for sale in 1922.

In 1923, to explain the success of her clothes, Coco Chanel told Harper's Bazaar magazine that design "simplicity is the keynote of all true elegance."

Business partners (late 1920s)

The sales-results of No. 5 led Coco Chanel to expand perfume sales beyond France and Europe and to develop other perfumes – for which she required investment capital, business acumen, and access to the North American market. To that end, the businessman Théophile Bader (founder of Galeries Lafayette) introduced the venture capitalist Pierre Wertheimer to Coco Chanel. Their business deal established the Parfums Chanel company, a parfumerie of which Wertheimer owned 70 per cent, Bader owned 20 per cent, and Chanel owned 10 per cent. René de Chambrun was retained under the capacity of Coco Chanel's personal attorney.

War (1930s–1940s)

From the gamine fashions of the 1920s, Coco Chanel progressed to womanly fashions in the 1930s: evening-dress designs were characterised by an elongated feminine style, and summer dresses featured contrasts such as silver eyelets, and shoulder straps decorated with rhinestones – drawing from Renaissance-time fashion stylings. In 1932, Chanel presented an exhibition of jewellery dedicated to the diamond as a fashion accessory; it featured the Comet and Fountain necklaces of diamonds, which were of such original design, that Chanel S.A. re-presented them in 1993. Moreover, by 1937, the House of Chanel had expanded the range of its clothes to more women and presented prêt-à-porter clothes designed and cut for the petite woman. Among fashion designers, only the clothes created by Elsa Schiaparelli could compete with the clothes of Chanel.

During the Second World War (1939–45), Coco Chanel closed shop at Maison Chanel – leaving only jewellery and parfumerie for sale – and moved to the Hôtel Ritz Paris, where she lived with her boyfriend, Hans Günther von Dincklage, a Nazi intelligence officer. Upon conquering France in June 1940, the Nazis established a Parisian occupation-headquarters in the Hôtel Meurice, on the Rue de Rivoli, opposite the Louvre Museum, and just around the corner from the fashionable Maison Chanel S.A., at 31 Rue Cambon.

Meanwhile, because of the Nazi occupation's official anti-Semitism, Pierre Wertheimer and family had fled France to the U.S. in mid-1940. In 1941, Coco Chanel attempted to assume business control of Parfums Chanel but was thwarted by an administrative delegation that disallowed her sole disposition of the parfumerie. Having foreseen the Nazi occupation policy of the seizure-and-expropriation to Germany of Jewish business and assets in France, Pierre Wertheimer, the majority partner, had in May 1940, designated Felix Amiot, a Christian French industrialist, as the "Aryan" proxy whose legal control of the Parfums Chanel business proved politically acceptable to the Nazis, who then allowed the perfume company to continue as an operating business.

Occupied France abounded with rumours that Coco Chanel was a Nazi collaborator; her clandestine identity was secret agent 7124 of the Abwehr, code-named "Westminster". As such, by order of General Walter Schellenberg, of the Sicherheitsdienst, Chanel was despatched to London on a mission to communicate to British Prime Minister Winston Churchill the particulars of a "separate peace" plan proposed by Reichsführer-SS Heinrich Himmler, who sought to…