Chanel acquires first tannery to secure luxury bag supplies

A man looks a display of a luxury brand in TokyoBy Astrid Wendlandt and Pascale Denis PARIS (Reuters) – Chanel has acquired its long-time lamb hide provider, the French tannery Bodin-Joyeux, in the latest purchase by a luxury brand of a partner that supplies top quality materials. Chanel, which belongs to the Wertheimer family, is the second biggest luxury brand in the world, behind Louis Vuitton and ahead of Ralph Lauren , with nearly 6 billion euros ($8 billion)in estimated annual sales. Like rival Hermes , Chanel has been buying up partners to guarantee long-term supplies and control quality, from plant growers for its Chanel No.5 perfume to embroiderers such as Lesage for its couture collections.