leena: you always look different because you are the first woman, first brown person, the first asian, the first

first indian, the first person of color to lead a luxury brand. you're always the first and you are always underestimated. people do not know what to expect. francine: leena nair is in charge of one of the most exclusive luxury brands of the world, chanel. the french fashion house known for its iconic designs and fragrances made the avant-garde move to appoint her to the top job. previously a human resources veteran, she spent three decades at unilever before switching to the world of fast moving consumer goods to haute couture and beauty. the firm's history is legendary from its founder, to its fans including marilyn monroe. for leena nair, it's a chance to make history. on this episode of leaders with laqua, i speak to leena nair about her professional and personal journey. how it defines her leadership style and her unique approach at the top of luxury. leena nair, thank you so much for joining us here on bloomberg. leena: delighted to be here. francine: what's it like being a chanel chief executive? leena: it's the best job in the world. it's creative, it's energetic,

it's vibrant, the sector is doing well, it's a great place to be. francine: what kind of difference do you want to make at chanel? is it on the business, is it longevity, what it stands for, sustainability? leena: i want to lead chanel into the future along with my team. and lead chanel into the future by protecting what's core to us, by protecting what is unique about us. and by evolving as a scaled iconic business brand. it is always important to understand the context we operate in. the context we have externally is very dynamic to macroeconomic challenges, inflation, complete fragmentation, media channels, ecosystems, winning hearts and minds of people is so difficult in today's day and age. so we see all of that

externally. ai, there's not a week you don't hear about ai. so all of this is happening externally and internally it has been a phase of rapid growth. in the last 10 years, we have more than doubled our revenue, more than doubled the number of people who work for us, we have more than doubled the distribution presence, we have more than doubled the number of countries we have presence in, so that is a lot of growth. so my role, along with my leadership team, is to ensure that we make coherent exchanges and we make sense of these changes and we are constantly shaping what's next. francine: as far as i can remember, chanel is this beautiful, high-end luxury, everybody wanted the products but it was always quite secretive. and then there has been an opening in the last couple of years through cultural events, podcasts, why is that? is there -- can a high-end luxury company no longer be secretive in 2024? leena: for me, never having been

in the world of luxury, sophistication and refinement didn't know what to expect when i came to chanel two and a half years ago. it's a very humble company. people are truly humble. you've met many of my teammates. and it comes from a sense of we don't see things unless we've really done them. high integrity. so we would rather do things before we speak about them. some of the shyness has to do with that. i think a part of the opening up is, also as we've grown larger, we've been to rapid growth, being in so many markets, having so many people work for us, it becomes important to be clearer and more open about who we are and what we stand for. it is a 100-year-old company. it's important to see what we do to have been an inspiration over the year to continue to build

inspiration for the next 100 years. francine: is that because we are buying luxury differently and clients and customers want more of the story than they did at 10, 15 years ago? leena: i think there is no typical client and no one reason to engage in luxury. truly, we see all kinds of clients. people who are longtime fans of chanel. people who are dedicated buyers of couture. people who are first-time buyers . first-time buyers are 30% of our clients. we see a lot of gen z and alpha. 35% of luxury consumers are going to be gen z and alpha. it's a hard number to believe. but it's the vibrancy, the vitality is huge. each of those clients have a different set of reasons why they engage with us. for gen z and alpha, they buy because they want to buy less and by better. they want to buy because they see it as a financially wise investment. but everybody buys for different reasons. for me, it's part of continuing to build our brand, our reputation, our company. and telling our story in engaging ways to all sorts of clients. francine: you have to speak differently to the younger generation.

leena: no, not really. our story of craftsmanship, our story of how many hours goes into making this jacket, like 100 hours, all hand made, is still the core of our story. it is still how people engage with luxury, the quality of it, the beauty of it, a thing of beauty gives us all joy. so that is still a big reason for why people look at luxury, the quality and being part of that, and the story of chanel, and the story of her dna, and what she means for us, a spirit of constantly innovating in the radical ways. because when she designed clothes, it was about the freedom of movement. it was about anticipating the needs of the modern woman. it was about creating trousers, cross body bags so that women could ride bikes, ride horses. it was about supporting women to supporting and being who they

want to become. it was about being on a journey of self-discovery with women and that core part of our story doesn't change, it is the story of supporting women to be and become the best versions of themselves, to discover themselves, and that story still engages no matter what age you are. and the core of our stories are leaders and change, how we see it might change, there are all sorts of things, instagram, tiktok, all the things coming, the media challenge might change in how we engage might change but the core of our story is very much who we are at chanel. francine: that's like a pioneer. when you talk about her, it's also telling a little bit about your story. you have a unique story. you grew up in a town in india where not many females were educated to a higher level. so what was that journey like? leena: it was a long journey.

i grew up in a small town in the southwest of india, and the world of luxury, refinement, sophistication was very far from where i grew up. it was a small town like any other. most of my memories of me running barefoot in the town, having my little bike. women being ambitious was not the norm. in fact, i remember my mother constantly telling me who will marry you, you are so ambitious and you don't know what you are going to do with your life. it's very limited access to opportunities. i did engineering after sort of convincing everybody in my family that engineering was good for girls, which was great. it was electronics and telecommunications. i quite enjoyed being in the minority, but learning a lot more about the world of technology, which we are all a part of. i did my management studies, worked all over the country. i had an all around experience, hands-on experience, worked in the shop floor, worked in

frontline sales, road trucks in the morning going to the train selling team. so it was a fun experience. it was an adventure. it meant being constantly underestimated. it meant that you always look different because you were the first woman, the first brown person, the first asian, the first indian, the first person of color to lead a global luxury brand. you are always the first, you're always underestimated, people don't know exactly what to expect. and along with it comes the responsibility of making it easier for those who come after you. so i feel a tremendous privilege, tremendous sense of responsibility to make it easier. which means, questioning norms, being a role model, mentoring as many people as i can, trying to make it easy for others. constantly championing a more equal world. francine: you like a challenge. is there ever a challenge you

shied away from? leena: every single thing i've done, it's almost as if somebody said it can't be done. i was in a factory and i said i want to go on the night shift and they said no. i said, how will i be a successful manager if i never went into the night shift and knew how a third of our people worked. so in some ways it has fueled my determination. it has fueled, ok, i am to show this, a sense of i will get on and do it. it also gives me courage because i feel i'm not just doing it for me, i'm doing it for everyone else who comes after me. it gives me courage. it fuels my determination and courage. i don't shy away from challenges and people ask me for advice, put your hand up for at the most difficult job or what's challenging. go in there and lean into things that are difficult and challenging because that's what gives you the greatest credibility, respect, reputation as you build your career.

francine: coming up, chanel's leena nair on the long-term outlook for luxury and the changing role for what it means to be a chief executive. ♪

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francine: chanel is behind some of the most recognizable designs and fragrances in modern fashion. the french luxury house is still privately held by the billionaire family, involved with the company over the past century. i continued my rare interview with the firm's chief executive, leena nair. do you see that the high-end luxury, does that even go higher in luxury, that actually there's a lot of players in the fashion world, the luxury world and it's the ones that are very high that will do well, and does that justify the price increases we have seen at chanel? leena: our prices are related to our cost prices. we use exquisite raw materials. and our production, as you know it, is very rigorous and laborious, handmade.

so we raise our prices according to the inflation that we see. they are really linked to cost price. we've made a commitment to price harmonization across the world. which means, a client should not experience excessive price differentials no matter where they buy. francine: the second hand market is also something we see more and more in the last four or five years, what does it mean for a company like chanel? leena: we always said we want our clients to buy from our beautiful stores because we believe that clients must enjoy the most immersive experience, immersive physical experience to build a relationship with the

fashion advisor, beauty advisor, boutique assistant is so magical to the core of the chanel story. francine: how do you see the china market compared to the u.s. market? it's not that volatile. you've had a base that has stayed for some time. leena: china is a very central market for the luxury goods system because of the fast adoption of luxury. because of the appreciation of refinement and sophistication. so it's a very important essential market for us. i came back recently from china and i was really happy to see the energy and vibrancy in the market. so we continue to run our business for the long term and continue to invest in china for the long term. similarly u.s. i see u.s. as a long-term market for luxury, it always has been. and all markets see ebbs and flows. but if you keep a long-term perspective, you continue to invest. we just opened our beautiful fine jewelry store on 5th avenue. it is absolutely breathtaking. designed by peter marino with everything that you would expect in a chanel boutique. great personalization, beauty, things that uplift you.

so we believe in both these markets and they are important. francine: it's probably rougher being a chief executive in 2024 than the last 20 years because of the constant change. and we don't know what ai brings either. leena: yes, it is. and one of my principles as a leader is about tapping into collective intelligence. because i truly believe the days of the superhero leader are well and truly behind us. the world is so complex, there are crises on multiple levels. imagine one individual, no matter how bright they are, how experienced they are, can have answers to all the questions, no chance. that's why i believe in collective intelligence, diverse perspectives. go around the room, listen to every voice. it's important to me that i'm not just listening to the dominant voices in my meeting room, but all voices around the table. francine: is that why you lead by empathy? you always say you lead and lift, which is not always easy. leena: in the early days of my career in my early days in unilever, when i was going to a

place in a factory, if i felt it was not safe for women, i would fight the battle to make sure it was safer for women. it was always questioning the norms, challenging what's happening to make it easier for others who come after me. it's beautiful in chanel, we have 76% women, 60% of my management team are women. so it's easier to set into place everything to support the development and the career of these talented women and create a more equal world. francine: would you ever go into menswear? would chanel ever go to menswear? leena: it's a great time in our history where we have a female founder, a female ceo, female creative director of fashion, so it's a rare time. i think we support women everywhere in such a beautiful way. we do make things for men. blur is one of the largest

selling perfume for men and i hope it stays that way. we are really by women, for women, support women and we are here to empower and support women in the journey of becoming. francine: you are right, i forgot the perfumes. there are things people don't understand about chanel. for so long, it was all kept in house. but you also have other brands. how do you see all of these companies working together? leena: you know, we are the world leader in many categories. there is all the fashion, which is well known, we are in fragrances, beauty, skin care. and one of the things as my leadership team, which we started working on a beacon of inspiration for the next 100 years or what we call the 100 years plan, we started putting some building blocks, which is having a positive impact in the world. their sustainability and the women's empowerment and girls.

we are one of the largest financial organizations dedicated to women empowerment and girls. francine: it is amazing, because not many people know that. leena: 125 million this year. 100 million when i came in and we have increased it. so we are truly one of the largest organizations in the world. we work with 237 partners in 50 plus countries on beautiful programs that support women to be free to shape their destiny. francine: coming up, leena nair on how chanel is trying to change luxury and how her background in hr is helping to shape her mindset as a chief executive. ♪

francine: leena nair is used to breaking convention and changing norms in the workplace, including her transition from unilever and human resources, to becoming the chief executive of one of the most prestigious names in luxury. she tells me how chanel is positioning for the future of fashion and what it means for her legacy at the iconic firm. how difficult is it for a big luxury company to be sustainable? i mean, you have very ambitious goals. leena: i would like us to set the bar for luxury. i would like other luxury players to be inspired by what chanel does every day. we are one of the few luxury

players that has now publicly set a goal of net zero 2040. we want to reduce our carbon emissions. so for example, in carbon emissions, we are reducing our logistics, transport and carbon footprint to do it digital. chanel.com saw an increase traffic of 30%. a 16% reduction in carbon footprint. francine: how much comes from the heart, trying to do good, how much does a play with consumers? in 5, 10 years there will be even more focus on this. leena: i think clients believe luxury is sustainable because they know we make a few things and we make them beautifully and we make them with hand. and that is a genuine desire by clients to see this as sustainable will only go up. i mentioned gen z and alpha. they buy because they want to buy less and by better, which is the right mindset to engage with luxury. so it is increasingly important. francine: in sustainability, do you need to be a risk taker? the idea that as a chief executive, you need to be

careful, but is there anything coming where there is a challenge for your risk-taking? leena: i think for all of us, the world today is so complex and moving fast, that you are constantly adjusting being a -- for me, we are a courageous brand because we walk in the footsteps of a courageous woman. she lived the life she wanted, courageously, passionately, she made the choice she wanted courageously, passionately. one of her values is audacity. audacity is important. you call it risk-taking, i call it audacity. francine: i prefer audacity. it had a certain cachet that gabrielle chanel would have loved. but have you learned about yourself. you were in charge of hr for unilever.

a massive company, 100,000 employees. is it different than being in charge of a company than being in charge of hr? leena: when i was moving to chanel a mentor told me, you are doing a quadruple jump. i said, what do you mean? it has changed on so many dimensions. it's public to private. it's fmc to luxury. it is from anglo dutch to french heritage. i have italy/french classes. it has been change on all dimensions. it's not just one dimension, it has been all dimensions. and luxury is very different. the preciousness, the rarity is not available every time. it's the balance between timeless, quest for new. it's all of that. it's different. to me, the principles of business and the principles of leadership are transferable across sectors. how to run a business across multiple countries, multiple product categories, multiple geographies, multiple cultures.

how to galvanize and inspire teams across again multiple cultures. there are principles that hold you in good step because people are people, at the end of the day. they have motivations, dreams, aspirations. they want to engage in a particular way. being in chanel has taught me to be more patient, more long-term. the treadmill of quarterly results, etc. is a different world. so it has taught me to be more patient. it has taught me to appreciate a lot more. and i want to change the world, but look good while doing it. francine: i love that. do you think about your legacy? leena: yes, i do. for me, i hope people see i am a purpose led visionary leader. which means you spend a lot of time thinking about, what are you doing, what are you giving back, what will be the difference you make? i think for me the biggest thing

is if, 100 years from now people look back and say that we at chanel did stuff today that inspires them, that helped them question norms about what they are doing, audacious things that have redefined the norms, and supported women everywhere to feel like they can be the best version of themselves, i think that would be something that i would feel good about. if i made a few women in the world dream a little bit more about what they could achieve in their lives, i would feel very fulfilled in my life and career. francine: do you think you will ipo chanel? leena: an ipo is not on the table. we love the privilege of being an independent company, making long-term decisions. 20, 30, 100 years on. francine: best piece of advice

and worst piece of advice you have ever been given. leena: best piece of advice, i am going to do too. one is, fall in love with the job you have. fall in love with the job you have and make it the most perfect job in the world. and the other is, which my husband tells me a lot, enjoy the journey as much as you enjoy the destination. we are always in a hurry to get somewhere. you get promoted, thinking of the next promotion, no, just enjoy. breathe a bit and enjoy the journey as much as the destination. worst piece of advice? i think most often when you get the worst piece of advice, you just ignore it and forget about it. but i have received advice like, when i was in many rooms, the only woman in the room so many times in my career, i have received advice like, stay quiet for as long as you can and try to blend in. and you are already standing out because you look different from the rest. and i think that's terrible advice.

i think it's really important you feel safe to be who you are. and it takes courage to be who you are and you change by being who you are. francine: leena nair, thank you so much for joining us today. ♪

casey: no one is quick to link anything to the fires here, but i know in my heart that the breathing issues happened straight after the fires, if not during. he was a hea