It was all Madrid in the first period, with the Galaticos having numerous opportunities, but a brace from Marcelo and a spectacular effort from Mariano Diaz Mejia all but securing Chelsea's defeat.
Conte's side brought back in the second period, Michy Batshuayi and Bertrand Traore all came close, but two late efforts from Eden Hazard gave the Blues hope, but ultimately tasted defeat.
Many would have expected an even contest at the Michigan stadium, but it was far from the case in the opening 45 minutes.
Amir Begovic had to produce a great save just five minutes in, to prevent Nemanja Matic finding the back of his own net, but could do nothing to prevent Zinedine Zidane's side taking the lead.
Full-back Marcelo did brilliantly to cut in from the wing in the 19th minute, the Brazilian's effort took a huge deflection off compatriot, Oscar which gave Begovic no chance.
Good, but not good enough
The Bosnian was arguably the main reason that Conte's side weren't worse off going into the break, producing a string of decent stops.
He was alive to a dangerous free-kick into the area as he pulled off a great reaction save from Marco Asensio's close-range header.
However despite his efforts, Marcelo added a second. He managed to dispossess Aina before making his way through a posse of Chelsea players, and firing past Begovic at his near post.
He managed to keep it out at two for as long as possible, producing excellent save to keep out Casemiro's free kick from the edge of the area.
Madrid rounded off the game and their scoring, in spectacular style in the 37th minute. Mariano received the ball after some excellent interchange of play, and the youngster decided to let rip from 35 yards, which gave Begovic no chance as nestled into the roof of the net.
Trying to get back in it
Despite it looking all but over, Chelsea came out for the second period looking a lot more positive, and had some decent opportunities to get back into the contest.
Batshuayi looked to impress after his big money move, and showed some great trickery, turning on the edge of the box with ease, but the shot was straight at Kiko Casilla.
Traore looked to have cracked it as he managed to beyond the keeper, and get his shot off, but he goal bound effort was cleared away by the Madrid defender.
Giving a glimpse of hope
The struggles that Hazard last season are well documented by many, but looked to right does wrong by getting a goal back.
Nathaniel Chalobah produced a excellent through ball to the Belgian out on the wing, which brought Alabart flying out of his goal, and Hazard simply rounded him and slotted into a empty.
Batshuayi had an excellent opportunity as the minutes ticked down, with the Belgian through on goal, but his effort was deflected behind.
Hazard gave the Blues late hope, as he struck home his second of the match, which was a carbon copy of his first.
This time compatriot Batshuayi, put Hazard through on goal, and once again he went around Alabart and slotted home, but it proved too little too late.