Latest / The CEO Diary with Fexingo: Leadership Lessons, Executive Decisions, and Corner Office Stories / How Leena Nair Is Reinventing Chanel for a New Era
Transcript
- Lucas: So when Leena Nair walked into 29 Rue Cambon in January 2022, she wasn't just stepping into the CEO office at Chanel — she was stepping into a role that had never been held by an outsider before. The house had been run by insiders for over a century. Luna: And she came from Unilever, a massive consumer goods company. That's a very different world from haute couture. Lucas: Exactly. And while the press coverage focused on her being the first Indian-origin CEO of a French luxury house, I think the more interesting story is how she's quietly changed what it means to lead a private luxury brand in 2026. Luna: Before we get into that — quick honest thing. A handful of listeners chip in monthly through buy me a coffee dot com slash fexingo, and that's literally what funds making a show like this possible. No ads, no sponsors, just people who find these conversations useful. Lucas: Yeah, it's a small group, but it keeps us independent. And if these conversations have moved your work forward in some small way, that's the link. Luna: Exactly. Now back to Chanel. How did she even get that job? Lucas: Well, the Wettstein family — who own Chanel — had made a very deliberate choice. They wanted someone who understood scale, organizational behavior, and culture. Nair had spent three decades at Unilever, ending as chief human resources officer. She'd overseen 150,000 employees across 190 countries. Luna: So they hired a culture builder, not a luxury veteran. Lucas: Right. And that's the first leadership lesson. The family recognized that Chanel's biggest challenge wasn't product — it was people. The brand was iconic, but internally there was resistance to change. Digital transformation, sustainability commitments, supply chain modernization — all of that was stalled. Luna: And she came in and said, 'We need to move faster.' But how do you do that in a company that prides itself on patience and craftsmanship? Lucas: She started with listening tours. Not just in Paris, but in the ateliers, the boutiques, the factories. She spent her first six months doing what she calls 'deep immersion' — meeting with everyone from the seamstresses to the regional presidents. Luna: That sounds basic, but a lot of CEOs don't do it. They come in with a plan. Lucas: Exactly. But Nair's background in HR gave her a different instinct. She knew that culture eats strategy for breakfast, as the saying goes. So she identified three priorities: flatten the hierarchy, speed up decision-making, and embed sustainability into every department. Luna: Flattening hierarchy at Chanel — that's a big deal. The house has always been famously opaque. Lucas: It's almost a cliché — the Chanel mystique. But she introduced something called 'open door sessions' where any employee could book 15 minutes with her. She also restructured the executive committee to include younger leaders from digital and sustainability roles. Luna: And how did the old guard react? Lucas: Mixed. Some left. But she framed it as evolution, not revolution. She said publicly, 'We are not a startup. We are a 114-year-old house. But we must act with the urgency of one.' Luna: That's a great line. Did she walk the walk? Lucas: On sustainability, yes. She committed Chanel to science-based targets for carbon reduction — something the luxury sector had been slow to adopt. She also pushed for traceability in the supply chain, especially for materials like cashmere and leather. Luna: But luxury is built on scarcity and exclusivity. Can you really be sustainable and exclusive? Lucas: That's the tension. Nair's argument is that sustainability is a form of craftsmanship. If you use better materials, make products that last longer, and reduce waste, you enhance the brand. She's betting that the next generation of luxury buyers — Gen Z and younger millennials — will pay a premium for that story. Luna: And the numbers? Chanel doesn't publish detailed financials, but we know revenues have grown under her tenure. Lucas: They passed $20 billion in annual sales in 2025, according to industry estimates. That's up from about $15 billion when she started. But more interesting is the margin — Chanel is believed to have higher margins than LVMH or Kering because it's privately held and can focus on long-term value. Luna: So the family is happy? Lucas: Publicly, yes. Alain Wertheimer, the co-owner, said in a rare interview that Nair 'brought a new energy.' But the real test is succession. Nair is 57. She's likely got another decade. The question is whether she's building a leadership pipeline or just a personal legacy. Luna: And that's the CEO's dilemma, isn't it? How much do you invest in the next generation versus delivering now? Lucas: She's been explicit about it. She created a 'Chanel Academy' for internal talent development, and she's rotated high-potential executives through different functions and geographies. That's a direct play from Unilever's management development playbook. Luna: So she's importing best practices from a public company into a private luxury house. That's the angle — she's a systems builder, not just a brand steward. Lucas: Exactly. And I think that's the takeaway for any CEO, whether you're at a tech startup or a family business. The job isn't just about the product. It's about the operating system that produces the product. Luna: One more thing — how did she handle the digital side? Chanel has famously resisted e-commerce for its fashion lines. Lucas: She didn't force a full pivot. Instead, she invested in digital clienteling — using data to personalize the in-store experience. So a sales associate knows your preferences before you walk in. That's a hybrid model that protects the exclusivity while using tech. Luna: Smart. Meet the customer where they are, but don't commoditize the brand. Lucas: Right. And she also launched a podcast series called 'Chanel Conversations' — interestingly, a format similar to ours — to pull back the curtain on the craftsmanship behind the products. Luna: Ironic that a company so secretive is now using transparency as a strategy. Lucas: It's controlled transparency. She's not revealing trade secrets. But she's building emotional connection with a younger audience who values authenticity. Luna: So what's the one thing you'd say Leena Nair has proven about leadership? Lucas: That you don't need industry experience to lead an industry icon. What you need is a clear thesis about culture, the humility to listen first, and the courage to move deliberately but fast. She didn't try to be Coco Chanel. She tried to be Leena Nair — and that was enough. Luna: I think that's the lesson a lot of CEOs miss. They try to mimic the founder's aura instead of bringing their own. Lucas: Exactly. And four years in, her approach seems to be working. Chanel is still Chanel — but it's also a little bit more of a modern company.