Chanel Rejects the ‘Fashion Watch’ as It Takes Aim at Rolex

Chanel’s jewelry boutique on the Place Vendôme in Paris sells ceramic timepieces, floral brooches, and gold quilted-pattern rings. Its three arched windows face the Ritz hotel where Coco Chanel once lived, on a square that today is home to the shops of such Swiss stalwarts as Rolex, Breguet, and Patek Philippe.

The French house is sending a message to its noble neighbors: The company synonymous with woven chain-link handbags, tweed blazers, and No. 5 fragrance is determined to become a bigger force in the rarefied world of fine timepieces. But pushing even one of the most coveted names in female fashion into a category still populated predominantly by men won’t be easy. Other fashion brands such as Dior and Hermès have tried to make headway in the tradition-bound industry, with limited success. And from its inception 109 years ago, Chanel has enjoyed a reputation for feminine sensibility, which could make it difficult to build a big business in truly expensive watches, where the majority of sales are to men. “Diversifying is always tough, and it can go wrong if a brand lacks legitimacy,” says Oliver Mueller, a brand consultant at LuxeConsult in Aubonne, Switzerland, which specializes in the Swiss watch industry. “What Chanel has done very well is make its watches coherent with the rest of its product offering in terms of price and aesthetics.”