Luxury brands like Chanel were believed to be insulated from the negative effects of the economy because of their established base of wealthy customers and growing popularity in China, Russia, and other emerging markets. Despite its commitment to quality, even the House of Chanel felt the strain of the global economic downturn. To ride it out, the company in 2009 laid off about 200 of its fixed-term and temporary contract workers in Paris as demand for its luxury items declined.