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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.

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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Strategies

Claiming your business page on review platforms can have unintended effects on customer reviews, study shows

Claiming a page signals to the public that the owner is present, paying attention and potentially available to address complaints. That shift in perception encourages dissatisfied customers – who otherwise might have stayed silent – to voice concerns, seek remedies or demand accountability through the review platforms. 

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Claiming a business page on an online review platform such as Yelp may result in a sharp decline in ratings and an increase in lengthy, negative customer feedback, according to a study from Florida International University. 

The study, led by Jong Youl Lee, assistant professor of information systems and business analytics at FIU’s College of Business, finds that once a business claims its Yelp page, its average rating falls by more than 10%, driven largely by an influx of one-star reviews and a decrease in five-star reviews. The shift is immediate and persistent, lasting more than a year after the claim date. The study was published in Information Systems Research.  

The likelihood of a one-star review rises by nearly 10% as well. These lowest-rated reviews also become substantially longer, with customers directly addressing owners or managers about service failures. An analysis of reviews shows a clear increase in negative language and a decline in positive sentiment. 

The reason, the researchers say, is rooted in consumer psychology. Claiming a page signals to the public that the owner is present, paying attention and potentially available to address complaints. That shift in perception encourages dissatisfied customers – who otherwise might have stayed silent – to voice concerns, seek remedies or demand accountability through the review platforms. 

“When customers see the page is claimed, they believe the owner is watching,” Lee said. “That motivates very unsatisfied customers to write reviews they otherwise might not have written, and they tend to be more critical and more detailed.” 

Many review platforms, including Yelp, TripAdvisor, and Yellow Pages, offer business owners the option to claim their pages, which can provide features such as photo control, basic analytics and the ability to respond to reviews. But Lee’s research suggests these perks may come with hidden costs, particularly for small, resource-constrained businesses. 

“Claiming your business page is not costless, even if it’s free of charge,” Lee said. “Businesses need to be prepared to monitor reviews and respond effectively. If they’re not ready to do this, claiming can actually hurt their reputation.” 

Drawing on a large dataset of newly opened popular restaurants in the nation’s 200 largest metro areas, the team analyzed what happened to ratings before and after a business claimed its Yelp page. Instead of relying on simple comparisons, the researchers looked at what happened before and after business owners claimed their online business pages, comparing owners who did so at different times. Using technology that can analyze and interpret written text, they also examined the review texts to measure shifts in tone and topics, and they conducted an online experiment to confirm how customers interpret the “claimed” badge. 

The implications extend beyond the restaurant industry. Any small business that lacks the staff to monitor online feedback may be vulnerable to the same dynamic, Lee said. 

The takeaway for business owners: claim your page when you are operationally ready. 

“Claiming is the very first step that allows owners to use customer management features as powerful tools for service recovery but only if owners are prepared for what comes next,” Lee said.  

Lee conducted the study with Mikhail Lysyakov and Huaxia Rui, both from the University of Rochester.

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BizNews

For those marketing contents, weekly episode releases drive higher viewer engagement and subscriptions on platforms

Marketing people, pay attention: the drip-style release schedule boosts both engagement and subscription revenue.

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Gradually releasing TV show episodes, rather than offering full seasons all at once for binge-watchers, significantly increases engagement on subscription video-on-demand (SVoD) platforms, leading to substantially higher subscription rates.

This is according to a study that provides the first large-scale causal evidence from a real-world randomized field experiment showing how release strategies shape viewing patterns, content discovery and retention across 84,000 viewers over a five-week randomized trial.

The study, “When Less Is More: Content Strategies for Subscription Video on Demand,” was authored by Miguel Godinho de Matos of Católica Lisbon School of Business and Economics, Samir Mamadehussene of the University of Texas at Dallas and Pedro Ferreira of Carnegie Mellon University.

To conduct their study, researchers made sure that across a five-week randomized field trial conducted with a major multinational telecommunications provider, viewers were assigned to a gradual (drip) release schedule. As a result, they found these viewers were 48% more likely to continue using the platform. They were more likely to return on a weekly basis to explore additional content.

When the researchers studied the all-at-once release of episodes, they found that while this approach initially attracted more binge-watchers who were eager to start a new series immediately after launch, those platform users did not engage with the platform over time in a more sustained way.

“The moment all-at-once viewers finish a fully released show, they often leave the platform,” de Matos said. “A drip schedule keeps viewers engaged for weeks, giving them time to search, browse, and find other shows they enjoy.”

“Releasing episodes slowly creates natural touchpoints that bring viewers back each week,” said Mamadehussene. “Those repeated visits dramatically expand content discovery and strengthen retention.”

When given all-at-once access, drip-release viewers tended to watch fewer episodes the first week, but they did watch significantly more episodes in later weeks. They increased exploration of the platform catalog, and ultimately consumed more total content than those given all episodes upfront.

At the end of the free trial, drip-release users were 1.7% more likely to subscribe, a 48% increase over the all-at-once group’s baseline subscription rate of 3.48%.

To be sure, the study found that this effect varied based on binge-watching preferences. For heavy binge watchers, the lack of immediate access to full seasons reduced engagement, lowering subscription likelihood. These findings help explain why major streamers which popularized binge releases, such as Netflix, have increasingly adopted weekly or hybrid release models.

“Our results show that the drip-style release schedule boosts both engagement and subscription revenue,” said Ferreira. “When it comes to sustaining audience interest, sometimes less really is more.”

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