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Chanel takes a step forward in its industrial sustainability strategy. The French company has launched Nevold, a new business structure focused on research, development and production of recycled materials. The company’s goal is to scale up the use of circular textiles both for its own collections and for third parties.
The operation has involved an initial investment of between 50 million and 80 million euros, according to the U.S. media WWD. In addition, the new entity will operate separately from Chanel and will be headed by Sophie Brocart, former CEO of the luxury brand Patou. The maison ‘s objective is to develop a structure capable of operating on an industrial scale in the recycled materials sector, which is still limited by costs, traceability and availability of raw materials.
Nevold will bring together Chanel’s existing investments, such as L’Atelier des Matières, focused on the recovery of stocks and surpluses, the Filatures du Parc spinning mill and the recycled natural materials company Authentic Material. The company is also contemplating new acquisitions in this field, with the aim of reinforcing its innovation and production capabilities.
The project is born with the ambition of becoming Chanel’s third industrial pillar, alongside its fashion activity and its manufacturing network. Bruno Pavlovsky, president of the fashion division and Chanel SAS, stressed in an interview with WWD that the maison, by volume, does not generate enough waste to develop this type of solution cost-effectively in-house. “We need to achieve scale if we want these recycled materials to be viable and, as far as possible, profitable,” the executive said.
Chanel launches Nevold, a structure dedicated to circularity
Nevold has started its activity with two solutions already available on the market: a yarn combining virgin and recycled fibers, which is already used in some emblematic fabrics such as tweed, and a recycled leather reinforcement that is already used in 30% of Chanel bags and 50% of Chanel shoes.
The new entity will operate under a BtoB model, and its developments will also be available to other brands and sectors. In fact, Nevold has begun collaborating with operators outside luxury, such as the French sports chain Decathlon.
The luxury firm closed FY2024 with the first drop in sales since 2020, contracting its turnover by 4.3% to $18.7 billion. Meanwhile, operating income plummeted 30% to 4.5 billion dollars.
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