Around the age of 20, Chanel became involved with Etienne Balsan, who offered to help her start a millinery business in Paris. She soon left him for one of his even wealthier friends, Arthur “Boy” Capel. Both men were instrumental in Chanel’s first fashion venture.
Opening her first shop on Paris’s Rue Cambon in 1910, Chanel started out selling hats. She later added stores in Deauville and Biarritz and began making clothes. Her first taste of clothing success came from a dress she fashioned out of an old jersey on a chilly day. In response to the many people who asked about where she got the dress, she offered to make one for them. “My fortune is built on that old jersey that I’d put on because it was cold in Deauville,” she once told author Paul Morand.
In the 1920s, Chanel took her thriving business to new heights. She launched her first perfume, Chanel No. 5, which was the first to feature a designer’s name. Perfume “is the unseen, unforgettable, ultimate accessory of fashion. . . . that heralds your arrival and prolongs your departure,” Chanel once explained. The fragrance was in fact also backed by department store owner Théophile Bader and businessmen Pierre and Paul Wertheimer, with Chanel developing a close friendship with Pierre. A deal was ultimately negotiated where the Wertheimer business would take in 70 percent of Chanel No. 5 profits for producing the perfume at their factories, with Bader receiving 20 percent and Chanel herself only receiving 10 percent. Over the years, with No. 5 being a massive source of revenue, she repeatedly sued to have the terms of the deal renegotiated.