In order to secure luxury bag supplies, Chanel has acquired its first tannery -- French Bodin-Joyeux, which has been the luxury brand's long-time lamb hide provider.
The tannery employs 100 people in central France and is one of Chanel's primary suppliers of supple lamb leather, used in its quilt leather bags.
In a similar approach to rival Hermes, Chanel has been acquiring partners to secure quality control and long-term supplies.
The trend to control the supply chain enables luxury brands competitive advantages like increasing barriers to entry and protecting the high-quality image and lifestyle they want represented with their products.
Chanel, part of the Wertheimer family, is the second biggest luxury brand in the world, in-between frontrunner Louis Vuitton and Ralph Lauren, with almost €6 billion in estimated annual sales.