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3 Lessons from Coco Chanel on how to go from outsider to successful innovator

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Photo by Charlota Blunarova from Unsplash.com

From complete outsider, raised in an orphanage, to extraordinarily successful entrepreneur. With radical innovations, she managed to revolutionise a world, that of high fashion, immersed in a mature socio-economic context, dominated by men and reluctant to change. Gabrielle “Coco” Chanel was the first designer to have a global impact and one of the most influential women of the 20th century. But how did she manage, starting from scratch, to make her way in such a conservative and male-dominated world and end up turning it upside down?

Starting from this question, a new study reveals what are the key conditions that can make the difference for an outsider, leading them to success. The study was published in the journal Enterprise & Society (Cambridge University Press) by Mariachiara Colucci and Simone Ferriani, professors at the Department of Management, University of Bologna, together with Gino Cattani of the NYU Stern School of Business.

“There are three crucial factors behind Coco Chanel’s entrepreneurial success: her unique perspective on the fashion world, her ability to find and cultivate a niche of like-minded supporters, and her ability to exploit the ‘turning points’ of the historical period she lived in,” explains Professor Colucci. “This model, in which these three factors fit together perfectly, gives a clear picture of the seemingly inexplicable path by which some outsiders manage to lead radical innovations.”

Gabrielle “Coco” Chanel was born in 1883 in a small village in rural France, in conditions of extreme poverty, and grew up in the orphanage of Aubazine Abbey. There, she received a basic education, but also learned to sew. This skill helped her to find her first job in an underwear and hosiery shop in the town of Moulins.

This was the beginning of her career in the fashion world. In 1909 she opened her first business as a hat designer, and by 1916 she was already running a successful business with three clothing shops and hundreds of employees. By 1931, she had 26 ateliers and more than 2,000 employees, with a turnover of 120 million francs (more than 60 million euros today). It was the highest figure in the Parisian fashion world at the time, and it continued to grow. By 1935 turnover had almost doubled.

“Coco Chanel started with a modest cultural baggage and totally lacked a social, economic and symbolic background. When she began her entrepreneurial journey, she was the outsider par excellence, yet she managed to leave an unprecedented mark on the development of the fashion industry,” explains Professor Ferriani. “She is also credited with playing a decisive role in creating the image, and the new social custom, of the modern woman.”

YOUR BACKGROUND MATTERS

According to the researchers, the first crucial element behind Chanel’s entrepreneurial success lies in her education and early experiences outside the fashion world. A position that uniquely shaped her aesthetic vision, allowing her to challenge the pressure imposed by the dominant canons of Parisian haute couture.

The environments in which she grew up and the unconventional stimuli she received gave her the creative freedom she needed to experiment with the radical ideas that would become a cornerstone of elegance throughout the world. For example, the researchers suggest that her sense of rigour, taste for black and white, as well as the idea of “functional” and “natural” clothing, which until then was completely foreign to haute couture, may have been inspired by the Romanesque austerity of Aubazine Abbey, where she grew up. Furthermore, it is thanks to the world of horses and racing frequented at the Chateau de Royallieu, where Chanel lived with her first lover, that the corset disappeared, and men’s trousers and shirts entered women’s wardrobes.

DEVELOP CONNECTIONS

But a radical vision is not enough, she needed to find a way to implement it. Here comes the second element that explains Chanel’s success: her exceptional ability to cultivate strategic connections with sponsors and influential members of Parisian high society.

“Coco Chanel was a seductive personality and an extraordinary networker. Through her social skills, she gained quick access to members of high society and prominent clients whose aesthetic orientations matched her stylistic vision,” explains Colucci. “Our study shows that Chanel’s social network was not only confined to the business world. Instead, it embraced multiple domains, notably the French artistic avant-garde, which readily endorsed the modernist ideals behind her sober aesthetic vision.”

Over the years, Chanel forged relationships and actively worked with artists such as Picasso, Cocteau, Reverdy and Diaghilev. It is also thanks to their support that her innovative style received public exposure in plays, ballets, and films, thus facilitating the fame and success of her creations. She was also an active participant in the Art Deco movement, which led to her most revolutionary design: la petite robe noire, the famous “little black dress” evoked by US Vogue in 1936 as “the Chanel ‘Ford’ dress.”

Photo by Roberto Martinez from Unsplash.com

CONTEXT IS EVERYTHING

Last but not least, there is the context. The third key ingredient in Chanel’s rise was in fact her ability to read and ride the dramatic change in social needs and customs brought about by the First World War. The post-war period was no longer a time for extravagance, and the privations of war had made women more receptive to simplicity and functionality.

“The truth is that Chanel, like all great innovators, was the first to read and anticipate a change in women’s needs, that the Great War only accelerated, paving the way for the birth of the so-called ‘modern woman’,” explains Colucci. “Chanel was ready, her creations perfectly coherent with the new image of women in society. What a few years earlier was seen as a radical expression of the female silhouette, in the roaring 1920s would become the dominant fashion.”

From this in-depth look at Coco Chanel’s extraordinary life, researchers have identified the essential elements that can allow an outsider not only to break into a closed context, but also to revolutionise it and achieve extraordinary success. A radical vision from the margins of society, the ability to cunningly build a network of like-minded supporters, and the arrival of an exogenous shock that accelerates the process of acceptance.

The study was published in the journal Enterprise & Society under the title “From the Margins to the Core of Haute Couture: The Entrepreneurial Journey of Coco Chanel”. The authors are Gino Cattani of the NYU Stern School of Business (USA), Mariachiara Colucci and Simone Ferriani of the Department of Management, University of Bologna.

BizNews

Structure of online reviews shapes their helpfulness

Reviews that grow increasingly positive are most helpful to readers, while those that turn negative are least helpful. For average-rated products, progressively negative trajectories enhance helpfulness, whereas reviews that start negative and grow positive are least effective.

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A study of nearly 200,000 Amazon reviews shows that the usefulness of online product reviews depends not only on what is said, but on how the information is structured.

The researchers, from the Universities of Cambridge and Queensland, studied Amazon reviews for products ranging from clothing to food to electronics. They found that how the information is organised matters as much as what is said, and that different review structures are more or less helpful, depending on how highly the reviewer has rated the product.

Their results, published in the journal Scientific Reports, could help companies and third-party review platforms design their review pages to prompt the sort of reviews that will be most helpful to potential customers.

For example, a reviewer assessing a laptop might praise its performance and design while criticising its battery life, so how should such information be structured to be most useful to the reader? Should the review begin with criticism and end on a positive note, or start positively before turning to drawbacks?

“Any target of evaluation typically has both positive and negative aspects, which makes crafting evaluative messages challenging,” said co-author Dr Yeun Joon Kim from Cambridge Judge Business School. “The key question is how to structure these elements within a single message. For example, one might present criticism upfront and then move to praise, or instead integrate negative points within an otherwise positive evaluation. Yet research has paid little attention to this structural dimension.

“We wanted to understand whether certain structures are consistently more effective, or whether their effectiveness depends on the performance of the target being evaluated.”

The study was based on 195,675 reviews of 5,487 distinct products, and assessed performance and related factors, and a helpfulness score as measured by reader votes.

The researchers identified nine possible structures of online reviews ranging from Type A reviews that start positive and become more positive as they go along, to Type I reviews that start negatively and become even more negative – with lots of variance in between.

For highly-rated products, reviews that grow increasingly positive are most helpful to readers, while those that turn negative are least helpful. For average-rated products, progressively negative trajectories enhance helpfulness, whereas reviews that start negative and grow positive are least effective. For low-rated products, reviews are judged most helpful when they open constructively before introducing criticism.

“The results are nuanced but very clear,” said co-author Dr Luna Luan from the University of Queensland, who carried out the research while earning her PhD at Cambridge Judge Business School. “Looking at the overall sentiment of reviews does not fully translate into message effectiveness. It is the broader structure of sentiment – how positivity and negativity evolve throughout the review – that shapes how readers interpret online reviews.”

“Our findings have practical implications for how platforms and companies can design review pages in order to elicit the sort of reviews that will be most helpful to readers based on how highly products are rated,” said Kim. “For example, instead of simply asking ‘Write your review here’, the online review form could instead include micro-prompts that guide how reviewers structure feedback in a way recipients find most helpful.”

The researchers found the most commonly used review styles are not necessarily the most helpful to readers. In particular, for average- and low-rated products, the structures that reviewers tend to adopt often differ from those that readers find most useful.

This mismatch likely reflects different underlying motivations. Reviewers are not always writing to maximise usefulness for others, but may instead be expressing their own experiences, frustrations or emotions – especially when evaluating products of moderate or poor quality. As a result, review writing often serves both as information sharing and as a form of self-expression. This helps explain why widely used review styles do not always align with what readers perceive as most informative or helpful.

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Strategies

Online marketers, take note: Online viewers prefer livestreams to recordings

Watching an online performance in real time boosts several aspects of the viewing experience.

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In an era when most TikTok videos are prerecorded, can a band with a new single create a tighter bond with fans by debuting via livestream instead? Can a business do the same when promoting a new product?

New research from the McCombs School of Business at The University of Texas at Austin suggests they could.

Since the pandemic, the livestreaming industry has been booming. The global market is expected to reach $345 billion by 2030, up from $100 billion in 2024. Nearly 30% of internet users watch livestreams at least once a week on social media.

Adrian Ward, associate professor of marketing, is one of them. A few years ago, he was viewing a livestream of a town hall meeting and found himself gripped by a speaker’s comments, feeling as if he were actually in the room. On reflection, he suspected it was the liveness of the event, as much as the speaker, that kept him glued to the screen.

“As we spend more of our time online and on social media, it’s worth asking how we can feel as complete and connected as possible in these spaces,” Ward says.

Live and Let Stream

With Alixandra Barasch of the University of Colorado Boulder and Nofar Duani of the University of Southern California, Ward began to investigate what he calls the “mere liveness effect”: the idea that simply knowing an event is streaming in real time makes a viewer feel more connected to the performer.

The researchers ran five experiments with 3,500 total participants. By manipulating various factors, they compared how, when, and why viewers reacted to watching livestreams versus prerecorded videos online.

In one experiment, participants watched live or recorded videos of their choosing on the platform Twitch. In another, they viewed a performance by the R&B cover band Sunny and the Black Pack, either live on YouTube Live or its recording the next day on YouTube.

In a third, the researchers created their own streaming platform to show participants identical videos, manipulating whether the content appeared to be live or prerecorded.

The experiments provide evidence that watching an online performance in real time boosts several aspects of the viewing experience:

  • Connection. Viewers in one experiment felt 7 percentage points more connected to the performers in the live video. Another experiment showed the effect was even stronger when viewers believed no one else was watching.
  • Enjoyment. In another experiment, viewers enjoyed the live video 5 percentage points more than the prerecorded one.
  • Engagement. Real-time streams carried a “liveness lift.” Viewers chose to continue watching longer, and they were more willing to follow and subscribe to the live streamer’s channels.

A common factor underlying those effects was a heightened sense of presence, Ward says. “When we watch something live, we are psychologically transported there.

“It’s not that there’s actually something different about the video itself. It’s that we know that it’s live right now, and that breaks down barriers between our world and the world on the other side of the screen.”

Lessons for Liveness

One quality weakened the liveness effect: not being able to see a performer’s face. When viewers saw only a musician’s hands, they felt less connected, even though they were watching the same performance.

The findings have implications for marketers, platform developers, and content creators, Ward says. In an age when people increasingly meet their social needs online, going live can benefit streamers by motivating audience engagement.

As a follow-up, he’s working with a graduate student to study whether the liveness effect translates into greater brand trust or sales.

“From influencers to businesses, it’s about the experience of real people seeing other real people live and in the moment,” Ward says. “It makes you feel like you’re sharing something.”

The Liveness Lift: Viewing Live Streams Creates Connection and Enhances Engagement in Amateur Music Performances” is published in The Journal of Marketing.

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Strategies

Renting out your place? Human connection key to a successful holiday rental

Warmth, friendliness and a sense of belonging, or the “homely” side of the experience, strengthen guest loyalty, making them more likely to return to the same host. However, these feelings alone didn’t necessarily make guests more likely to recommend the property to others.

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Striking up a connection with the property host is the factor that drives repeat bookings on holiday accommodation platforms such as Airbnb.

This is according to a new study, carried out by universities in the UK and Iran and published in the February 2026 edition of International Journal of Hospitality Management, that suggested that quality and value of accommodation also play a part in guest satisfaction, but personal connection is key to people deciding to stay again.

The research analyzed hundreds of online guest reviews and conducted in-depth interviews to understand what shapes guests’ evaluations of their stays in what is known as “peer-to-peer accommodation”.

Conducted over six years, the study shows that guests assess their stays using emotional cues such as warmth, atmosphere, and aesthetics; and cognitive cues such as cleanliness, safety, and convenience.

The study found that warmth, friendliness and a sense of belonging, or the “homely” side of the experience, strengthen guest loyalty, making them more likely to return to the same host. However, these feelings alone didn’t necessarily make guests more likely to recommend the property to others.

In contrast, affective and intellectual experiences – the enjoyment and perceived value of the stay – were stronger predictors of recommendations and positive reviews.

The research also examined how the quality of booking websites, such as Airbnb’s platform, influences guest behaviour. Although the website didn’t change how guests felt about the property itself, a well-designed and trustworthy site directly boosted guest loyalty and word-of-mouth.

Co-author Nektarios Tzempelikos, Professor of Marketing at Anglia Ruskin University (ARU), said: “Guests think carefully about both emotional and practical aspects before booking. Hosts who focus only on one side – either charm or functionality – may be missing the bigger picture.

“Platforms like Airbnb thrive when they’re designed for trust. Guests return to sites that are clear, reliable and easy to use. But it’s not just about tech, it’s about people. The most memorable stays come from warmth, authenticity and genuine local connection.

“By encouraging friendly, personal communication between hosts and guests, and balancing smart technology with a human touch, platforms can create experiences that feel less transactional and more meaningful.”

The study was carried out by researchers from Brunel University, University of Bradford, Newcastle University, Anglia Ruskin University and the University of Tehran.

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