Chanel’s Trademark Moves and Handbag Woes: The Luxury Giant’s Battle on Two Fronts

The French fashion powerhouse has been doubling down on its trademark turf and luxury purse playbook — but not everything is going to plan. Chanel’s aggressive trademark strategy is matched by a faltering bid to go toe-to-toe with Hermès, while a surprising underdog, The Row, is quietly outmaneuvering them in the U.S. market.
In early June, Chanel Inc. filed a trademark for 'AUTHORIZED RETAILER CHANEL AUTHORIZED RETAILER' aimed at locking down its fragrance, cosmetic, and skin care empire. On top of that, the brand sought more time to challenge Lake & Skye’s '222 COSMIC COCO AND MUSK' — a hair and body mist that, to Chanel’s sharp legal eyes, smacks too much of their iconic COCO brand. The fragrance battle shows just how fiercely Chanel is guarding its name as rivals inch closer with products that could blur lines for loyal shoppers. Following visualizations show Chanel’s new U.S. trademark and detailed info on the opposed trademark that has the French icon seeing red.
But if Chanel is a lion in the courtroom, it’s looking more like a lamb on the sales floor. Despite its global fame, Chanel is struggling to match Hermès’s stratospheric success. While Hermès saw profits climb and kept demand red-hot for its elusive Birkin bags, Chanel’s profits plunged, with U.S. shoppers balking at price hikes that doubled the cost of its classic flap bags since 2019. Even worse? The bags are slipping on resale, fetching less than their jaw-dropping retail tags — a stark contrast to the Birkin, which sells for double its sticker price secondhand. Meanwhile, American label The Row is playing it smarter. Instead of cranking up prices, it’s making its coveted Margaux bag harder to score. The result? The Margaux now commands premiums on the resale market, just like the Birkin. The Row’s game of scarcity is paying off — proving that in luxury, it’s not about what you charge, but how hard you make customers work to get it. Chanel might want to take notes before its handbags go from status symbols to shelf warmers.