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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

Women more likely to choose wine with feminine labels

The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

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To appeal to the majority of consumers, winemakers may want to pay as much attention to what’s on the bottle as what’s in it.

A three-part experimental study led by Washington State University researchers found that women were more inclined to purchase wine that had labels with feminine gender cues. The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

With women representing 59% of U.S. wine consumers, the male-dominated field of winemaking might want to pay attention to the perceptions of this understudied group, said Ruiying Cai, lead author of the paper in the International Journal of Hospitality Management.  

“When you look at the market segments, women are actually purchasing a lot of wine. They are a large group,” said Cai, an assistant professor with WSU’s Carson College of Business. “We found that feminine cues speak to women consumers. They have more favorable attitudes toward the label and the wine itself. They were also expecting their overall sensory experience to be better, and they were more likely to purchase the wine.”

Gender cues often rely on stereotypes, and in initial tests for this research, a group of 90 women rated wine labels as more masculine when they featured rugged animals like wolves and stags as well as portraits of men. They designated labels as feminine that had cute animals, flowers and female portraits. Labels with castles and bunches of grapes were seen as neutral.

In two online experiments, a total of 324 women were shown fictitious wines with labels designed with these gendered cues. The participants showed higher intention to buy wines with a feminine label, such as a woman holding flowers, as opposed to a wine with a masculine label, such as a bulldog in a spiked collar. When asked about the expected sensory experience, they rated their liking of every sensory aspect higher, including the color, taste, aroma and aftertaste.

The participant’s level of wine expertise moderated their taste expectations but surprisingly, not their purchase intentions.

“Whether they were knowledgeable or less knowledgeable about wine, when they saw those feminine cues, they had a higher intention to buy the wine. The gender cue influence was so strong, it trumped the effect of that knowledge,” said co-author Christina Chi, a professor at WSU’s Carson College of Business.

A third experiment with another set of 138 women involved a taste test—also with a surprising finding. Researchers gave bottles of the same red wine with one of the gendered labels. More women who tasted the feminine-labeled wine ranked it higher in fruit flavors such as red current and blueberry than those who tasted the same wine with a masculine-cued label—and despite the fact those flavors were not dominant components in that particular wine. Women connected more mineral flavors with the masculine-labelled wine.

However, the participants who tasted the feminine-labelled wine reported liking it less than the women who tasted the masculine-labelled wines. The authors said this could be a result of the incongruence between the expected flavor influenced by the feminine label and the actual taste of the wine sample, which had a medium body, tannin and alcohol level.

Few studies have focused on the perceptions of women wine consumers in a field where 82% of the winemakers are men. That lack of perspective is very apparent on wine aisles, said Chi, noting that many vintners seem to favor masculine imagery like stallions, bulls and roosters–and one brand even features a prisoner in a jail cell.

“When designing the labels, winemakers should involve more women in the process, and it’s highly advisable to pilot test the labels among consumers for gender cues,” she said.

In addition to Cai and Chi, co-authors on this study include recent WSU graduate Demi Deng now at Auburn University and Robert Harrington of WSU.

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Strategies

Tips that businesses should consider during the holiday shopping season

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

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As the holiday shopping season approaches, small businesses are gearing up for one of the busiest times of the year, from Black Friday to Small Business Saturday and beyond. 

SCORE, America’s largest network of volunteer, expert business mentors, offers entrepreneurs practical advice to make the most of the season.

Plan for the Holiday Rush

Reflect on last year’s performance. Did you meet your sales goals? Use your previous data to forecast sales, set promotional strategies and manage staffing needs to provide for outstanding customer care.

“It’s about more than just sales; it’s a powerful opportunity to connect with your community, attract new customers and reinforce relationships with loyal ones,” explains SCORE mentor Lizz Smoak.

If you plan on extending store hours during the holidays, communicate these updates with your team early so you are prepared to handle increased sales traffic. Ensure that employees are aware of the holiday schedule and have submitted any time-off requests to avoid last-minute scheduling conflicts. 

Create an Experience for Customers

“Engagement is key when customer traffic spikes during the holiday season,” notes SCORE mentor Christy Jones. “Consider offering curated gift guides or exclusive bundles to simplify decision-making for your customers, especially as you compete against large retailers like Amazon.” Plan a special event or connect with other local businesses to promote shopping small.

Stand Out from the Crowd

Consider how you can make your store or service the preferred choice. “Small business owners should contact their existing customers and highlight their unique level of service,” advises SCORE mentor John Doyle.

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

Be E-Commerce Friendly

As you roll out holiday promotions, make sure that your digital doorstep is ready, too. Confirm your hours, location and contact info are updated on your website, Google Business Profile and other local listings. Many customers will be shopping on their phones so be sure your website is optimized for mobile use and that your most popular products are easy to find. A smooth checkout process is vital for keeping customers happy and encouraging repeat purchases.

“Small Business Saturday offers a prime opportunity for small businesses to step into the spotlight,” said SCORE CEO Bridget Weston. “With a strategic approach, small businesses can leverage this season and see big returns.”

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BizNews

License to chill? Bond shows ‘regressive nostalgia’ can freeze a brand’s future

“In order to minimize the negative impact of regressive nostalgia, it is important that the brand does not pander to the nostalgia displayed by a minority of super-consumers. Brand stewards must not be swayed by these loud voices and become exclusionary.”  

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Super-spy James Bond is a prime example of ‘regressive nostalgia’ highlighting how certain consumer groups cling to idealised past versions of brands and resist attempts to move with the times, a new study reveals. 

Researchers examined the James Bond movie franchise – a cultural icon for over 70 years – and discovered that some ‘super-consumers’ react negatively to modern portrayals of the fictional British secret agent that reflect contemporary societal values.  

Whilst loyal to the brand, these consumers prefer traditional, more exclusionary, versions of Bond which most closely follow author Ian Fleming’s original 1950s and 1960s vision – characterised as an arrogant, misogynistic, and racist Imperial British male. 

Publishing their findings in International Journal of Research in Marketing, consumer behavior experts from the University of Birmingham and ESCP Business School, London note that regressive nostalgia is characterized by a preference for racial and cultural purity and heroic masculinity. The phenomenon harbors exclusionary and aggressive tendencies that pose significant threats to brands. 

The researchers have, therefore, produced a toolkit to help marketeers shield their brand’s contemporary positioning from the negative connotations associated with this form of nostalgia – allowing brands to evolve without alienating their core consumer base. 

Finola Kerrigan, Professor of Marketing at the University of Birmingham, commented: “The James Bond franchise is a perfect example of how ‘regressive nostalgia’ manifests. Whilst the brand has successfully adapted to changing times, a small but disproportionally vocal part of its fanbase is anchored in the past, highlighting the need for careful brand management. 

“These ‘super-consumers’ cling to Ian Fleming’s characterisation of Bond and the period during which the novels were written to justify their nostalgia. They actively resist attempts to modernise the franchise, dismissing as ‘woke nonsense’ recent movies such as ‘No Time to Die.” 

Chloe Preece, Professor of Marketing, ESCP Business School, London notes that these Super-consumers view Bond as a heroic, white, male icon providing a ‘safe space’ for those feeling threatened by contemporary discussion about creating a more inclusive society. The character’s ‘man-of-action’ persona allows this group of mostly male consumers to identify with the spy’s ‘heroic masculinity’ based on his ability to sleep with the ‘Bond girls’. 

While the study focuses on the Bond franchise, the researchers identify parallels with other groups’ appropriation of brand resources and associating them with anti-social causes. 

“Brands use nostalgia to connect with consumers – delighting and enchanting their customer base whilst connecting them to others – but this makes nostalgia potentially dangerous in drawing consumers to the past, when it creates a sense of loss combining a cherished past and a despised present,” said independent scholar Dr Daragh O’Reilly. 

“In order to minimize the negative impact of regressive nostalgia, it is important that the brand does not pander to the nostalgia displayed by a minority of super-consumers. Brand stewards must not be swayed by these loud voices and become exclusionary.”  

The researchers note that marketeers should be alert to the risk posed by regressive nostalgia and have devised toolkit comprising of a series of questions to help brand managers assess the level of threat.

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