Leena Nair, Global CEO, Chanel

Introduction and Early Life

• Leena Nair is the Global CEO of Chanel and has had a journey marked by several "firsts," including being part of the first batch of girls to graduate from her hometown high school and the first woman in her family to pursue higher education in engineering 55s.
• She was also the first woman to work the night shift on a factory floor at Hindustan Unilever, the first and youngest female leader of global HR at Unilever, and the first woman of color to lead a luxury major brand 1m22s.
• Leena Nair is the first Indian Global CEO of Chanel, and her experiences have been inspirational, especially considering the challenges she faced, including being underestimated and feeling like an outsider 1m40s.
• Growing up in a small town in India, Nair had to negotiate for everything, including studying and pursuing engineering, as not many women from her town had done so before 2m11s.
• Her mother expressed concerns about her ambition, worrying that it would affect her marriage prospects, which Nair recalls as a significant challenge 2m22s.
• Nair has developed resilience and determination, learning to take every opportunity with both hands and never take it for granted, as seen in her decision to pursue an MBA at an institute on the other end of India 3m9s.
• She believes in the mantra "lift as you climb," ensuring that she makes it easier for those who come after her, particularly women, and does not want to be the last person doing her job or running a brand 4m3s.
• Leena Nair grew up in Gapur, Maharashtra, and was considered different from the norms of her community, which helped her develop resilience from an early age 4m23s.
• Nair almost didn't get to go to high school and later attended an engineering degree program with 3,000 men and 18 women, where her mom was worried about her finding a husband 4m52s.
• She was also told she was so talented that she should have been a boy, but she learned to build resilience through affirmations, finding sponsors, and mentors 5m17s.
• Nair didn't have role models in her immediate family, so she reached out to people she admired, such as a state topper she read about in a newspaper article, and asked for their advice and techniques 5m30s.
• She believes that if you're committed and have deep intent, you will figure out a way to achieve your goals, and that being humble enough to reach out to others for help is essential 5m54s.
• Nair has a huge love for learning, is curious, and always says "I don't know, I want to find out how to do it," which has helped her throughout her life 6m6s.
• She was hungry to learn from people who were doing something interesting and would often reach out to them for advice or to meet for coffee 6m29s.
• Nair's father was a big sponsor for her education but told her he couldn't promise she would have a career, and instead asked her to promise to marry the man he chose for her before she turned 23 6m47s.
• However, Nair met her husband, Kumar, through her father's arrangement, and they got married after meeting for coffee and have been together for 30 years 7m47s.

Resilience and Personal Growth

• Embracing failure is crucial for personal and professional growth, as it allows individuals to take risks and learn from their mistakes, and it's essential to view failures as huge learning experiences rather than dwelling on disappointment 8m5s.
• Having a support system, such as family, is vital for maintaining courage and perseverance in the face of challenges 7m59s.

Career Path and Unilever Experience

• Leena Nair shifted from engineering to human resources after realizing she didn't enjoy coding as much and was more drawn to skills that engaged and motivated people 9m26s.
• Nair's experience working across various jobs, including sales, marketing, and supply chain, helped her discover her greatest gift was being able to understand and connect with people 10m7s.
• She found that listening to people without judgment or arrogance allowed her to learn more than what was written in log books, leading her to lean more towards human resource jobs 10m47s.
• Nair's leadership experience, including leading human resources for Unilever with 150,000 people in 190 countries, taught her the importance of humility and inspiring others 11m8s.
• To build a company culture that effectively hires and retains top talent, role modeling by C-level leaders is crucial, as they must exemplify the behaviors they want to drive within the organization 11m55s.
• To transform culture, leaders must consistently walk the talk, incentivize, and compensate for the right behaviors, and drive culture starts from knowing what drives people in the company and having a shared purpose and meaning 12m6s.
• Leaders must role model the behaviors they seek, and people need to know why they are in a company, what difference they make, and what is meaningful for them 12m51s.
• Achieving gender parity requires supporting women, working with men, and changing the culture simultaneously 13m18s.
• Supporting women means genuinely supporting them to express their ambition and feel confident, as women often face challenges in expressing their ambition due to societal expectations 13m45s.
• Men often have a different mindset, writing in appraisals that they are ready to be CEOs, while women tend to write that they need more time to get ready, highlighting the need to support women in expressing their ambition 14m18s.
• To truly achieve gender balance, it is essential to support women in feeling good about expressing their ambition and to take men on the journey, as men are influential and often think that women and men have the same challenges 14m46s.
• Changing the culture happens appointment by appointment, requiring a balanced shortlist of talented men and women for every job, appointment, and promotion, and making decisions based on merit 15m37s.

The Chanel Opportunity and Transition

• Leena Nair spent 30 years at Unilever, a company she considered her family, where she was comfortable and successful, but then she received a call from Chanel that changed everything 16m0s.
• Chanel's call was unexpected, and Leena was initially hesitant to consider the opportunity, feeling loyal to Unilever and unsure about leaving the company 16m46s.
• Leena's husband encouraged her to take the call and consider the opportunity, but it took her nine months to finally say yes to joining Chanel 17m11s.
• The opportunity to join Chanel was compelling due to the brand's iconic status, influence, and impact, as well as its dynamic and growing luxury sector 17m39s.
• Chanel is a legendary brand founded by Coco Chanel 100 years ago, known for creating trousers, cross-body bags, and other innovative products that empowered women 17m56s.
• As the CEO of Chanel, Leena oversees a wide range of products, including fashion, fragrances, makeup, watches, and jewelry, making every day a new challenge 18m12s.
• The luxury sector is a growing market, with the personal goods luxury market tripling in the last 20 years, and Gen Z engaging with the sector, making it an exciting space to be in 18m39s.
• Leena has fallen in love with Chanel and is now fully invested in the brand, enjoying the fun and creative work environment 19m1s.
• Despite not being the obvious choice for the role, Leena has taken on the challenge and is excited to lead Chanel into the future 19m48s.
• Leena Nair navigated a quadruple transition in her career, shifting from a public to a private company, from Dutch to French culture, from looking after people to looking after everything, and from a fast-moving consumer goods (FMCG) company to a bespoke luxury brand 20m4s.
• The toughest transition for Nair was from FMCG to luxury, as the two industries have completely different mindsets, with luxury being about creating rare and unique products that are often handmade 20m33s.
• In the luxury industry, products are made in limited quantities, and the focus is on creating a sense of desire and exclusivity, which is a significant departure from the mass market approach of FMCG 20m50s.
• Nair had to unlearn everything she knew from her previous experience and relearn the luxury mindset, which was a humbling and scary experience 21m32s.
• To adapt to the new industry, Nair relied on her transferable leadership skills and business fundamentals, which she had learned during her time at Unilever, but she also had to develop a new sense of patience and pace 23m43s.
• Nair's onboarding process at Chanel involved immersing herself in the company's history and culture, meeting with artisans and craftspeople, and learning about the brand's heritage and values 21m59s.
• She spent her first week at Chanel listening to stories about the company's founder, Gabrielle Chanel, and learning about the brand's history and legacy 22m11s.
• Nair visited the Chanel archives, which feature 150,000 artifacts and objects from the company's collections, and met with people who work on the brand's iconic products, such as pleaters, milliners, and embroiderers 22m42s.
• Through this process, Nair gained a deeper understanding of the luxury industry and the importance of craftsmanship, quality, and attention to detail 23m32s.

Leadership at Chanel

• Leena Nair had to understand Chanel's factories, designers, and craftsmanship before making changes, with a philosophy of "seek to understand before you seek to change" 24m18s.
• Nair's experience at a company that commoditized retail, such as Unilever, has influenced her leadership at Chanel, a company traditionally admired for its exclusivity 24m57s.
• Nair's principles of leadership are rooted in her perspective of listening to mentors, including Indra Nooyi and Nigel Lindsay 25m18s.
• She believes in being a holistic leader who thinks for the long term, considering all aspects of the business, including brand, clients, people, sustainability, and financial results 25m31s.
• At Chanel, 80% of the annual bonus is based on building the brand, making the world a better place, and looking after people in the business, while 20% is based on financial results 26m4s.
• Nair's leadership is characterized by benevolence, kindness, compassion, and empathy, and she believes in doing tough things in business compassionately 26m24s.
• She values collective intelligence, believes everyone's voice matters, and makes an effort to know people's names and faces, with a goal of knowing all 37,000 employees 26m52s.
• Nair's principles of leadership have not changed, and she aims to set a brand of leadership that is about compassion, empathy, and doing tough things decisively but with compassion 27m22s.
• She believes in being future-fit, listening, and looking outside, and is always curious, taking her team to meet with different companies and talking to founders 27m38s.
• Leena Nair values curiosity and a desire to learn, wanting to be "future fit" and maintain a curious mindset, which she believes is essential for personal and professional growth 27m53s.

Chanel's Strategy and Sustainability

• Chanel is adapting its strategy to engage with a new generation of consumers, particularly Gen Z, who prioritize individualism, personal expression, sustainability, and ethically sourced products 28m10s.
• Gen Z is expected to make up 30% of luxury consumers by 2030 and currently has one of the fastest-growing trajectories in the luxury market 28m28s.
• Chanel aims to encourage a "buy less, buy to invest" mindset, focusing on sustainability and creating products that last for generations 28m42s.
• The company has set a "Chanel sustainability ambition" with a net-zero 2040 commitment, investing in circularity, restoration, and upcycled products 29m15s.
• Chanel's staff uniforms are made from upcycled products, and the company promotes dignity and opportunity for everyone in its value chain 29m37s.
• The Chanel Foundation is a philanthropic organization that supports women and girls worldwide, working on projects that promote safety, social and economic autonomy, and climate resilience 30m17s.
• The foundation supports over 237 projects across 57 countries, including initiatives that provide education and economic opportunities for women and girls 30m31s.
• Leena Nair emphasizes the importance of business making a positive impact on the world, using resources and influence to drive change 31m5s.
• The Chanel Foundation's work includes supporting women who are fighting climate change and promoting climate resilience, such as the Green Brigade in India, which is saving and restoring mangroves 31m12s.
• Leena Nair believes that when women thrive, the world thrives, and encourages everyone to support women's empowerment and climate resilience efforts 31m33s.

Chanel's Vision and Values

• To create a more balanced world, it is necessary to have more women in leadership positions, particularly in business, where the number of female CEOs has remained stagnant at 7-10% for two decades 31m53s.
• Leena Nair believes that supporting women and girls is essential, and it is heartwarming to hear about the work being done by the Chanel Foundation, which is not well-known despite being an iconic brand 32m11s.
• Chanel is not a loud company and does not overcommunicate, but as it has grown larger, becoming a $2 billion company, it is essential to be more transparent about its values and actions 32m50s.
• The company prioritizes integrity and only communicates when it is 100% sure of its actions, but it is now more open to sharing its successes and challenges to inspire others 33m4s.
• Leena Nair's vision for Chanel in 10 years is for the company to continue being a beacon of inspiration for the next 100 years, just like its founder, Gabriel Chanel, who liberated women from restrictive clothing and created iconic pieces like the little black dress 33m59s.
• Chanel aims to have a positive impact on the world by investing in human beings, human creation, and human relations, which will enable the company to stay ahead and remain a source of inspiration 35m0s.
• The company values human skills, craftsmanship, and unique human qualities, which are essential in a world where AI is becoming increasingly prevalent 35m10s.

Personal Reflections and Pressures

• Leena Nair wants to be remembered for how she made people feel, as people tend to remember emotions rather than actions or words 36m4s.
• She also hopes that her 11-year-old self would be proud of the leader she has become, knowing that she has tried to make a difference and break existing norms to uplift and inspire others 36m33s.
• Leena Nair faces pressure as a leader, feeling like she has let down her entire race, women, and Indians, but she balances this pressure by embracing failure and learning from it 37m37s.
• To cope with the pressure, Leena Nair practices gratitude by writing down three things she is thankful for every night, and she also journals to remind herself of her strengths and reasons why she is the right person for a particular role 38m6s.
• She also relies on her community, family, and mentors, such as Nigel Higgins, to provide her with perspective and support when dealing with pressure and failure 39m13s.
• Leena Nair believes that it's essential to acknowledge and process emotions, whether it's through talking to loved ones, going for a walk, or having a good cry, to move forward and focus on the next task 39m29s.

Luxury Market Trends and Chanel's Success

• The luxury market has been experiencing a softening, with brands like Dior, Louis Vuitton, and Gucci seeing slight dips in sales, while Chanel has been successful 40m3s.
• Chanel's success can be attributed to its long-term mindset, as an independent and private company, allowing it to focus on brand building and creating a luxury experience for clients rather than quarterly results 40m40s.
• The company prioritizes brand, clients, and people, and maintains a long-term perspective, which has enabled it to navigate downturns and recessions over the past 100 years 41m38s.
• Chanel does not engage in e-commerce, instead requiring clients to visit stores and interact with fashion advisors to learn about the products and their stories 41m20s.
• The company believes that staying focused on doing the right things for the long term makes a difference, and this approach has contributed to its success 41m51s.
• China has been a significant growth engine for luxury brands, including Chanel, with a large and avid consumer base, particularly among younger generations 42m26s.
• Despite recent macroeconomic challenges in China, the market is expected to continue growing in the long term, driven by increasing sophistication and understanding of luxury among Chinese consumers 43m0s.
• The company is optimistic about the future of the Chinese luxury market and believes it will remain a growth market for luxury brands 43m8s.
• Despite market fluctuations, there is a long-term perspective on investing in China, with ongoing store openings, investments in product ranges, and hiring the right people to build leadership for the Chinese market 43m24s.
• India is expected to be a significant market for luxury in the next few years, as it values heritage and craftsmanship, aligning with luxury brands' focus on these aspects 43m57s.
• Other emerging markets for luxury include Mexico and Southeast Asia, with 141 markets currently being served, but opportunities for expansion into more markets 44m10s.

Mentorship and Inspiration

• Leena Nair emphasizes the importance of having mentors and seeking guidance from people who inspire her, which has helped her throughout her career 44m46s.
• Indra Nooyi, a mentor to Leena Nair, advised her to have confidence in her abilities and recognize her strengths when Chanel approached her for the CEO position 45m19s.
• Paul Polman, former CEO of Unilever, has also been a significant influence on Leena Nair, emphasizing the need to integrate environmental thinking into business decisions 45m53s.
• Leena Nair acknowledges the challenges faced by female founders in raising money and is considering ways to support them, indicating a willingness to adapt and learn 46m14s.

Chanel and the Future of AI

• Chanel is expected to adopt recent changes in AI and robotics, which will likely impact the broader luxury landscape, as AI is becoming increasingly ubiquitous 46m57s.
• Luxury brands, including Chanel, must engage with artificial intelligence (AI) as it is going to be transformative in the world 47m0s.
• Chanel's leadership team visited Seattle in May to learn about AI and its impact, meeting with companies such as Microsoft and Google 47m9s.
• The primary focus for Chanel is to ensure AI supports human creators and creation, rather than taking away from their skills and masterful work 47m27s.
• Ethics and integrity are core to Chanel's approach to AI, with a focus on doing things the right way 47m42s.
• Chanel's organization is predominantly female, with 76% of the organization and 96% of clients being women, which contrasts with the male-dominated AI industry 47m59s.
• Chanel is working to integrate a humanistic way of thinking into AI, with the CEO encouraging other CEOs to do the same 48m24s.
• The company is getting its organization AI-ready by doing the hard work of getting infrastructure, systems, data, and data governance in place 48m31s.
• Chanel is experimenting with AI, trying various things such as chatbots on their website, but is focused on scaling what truly needs to be scaled 48m44s.
• The company values giving its creators the freedom to do their best work, which is an important part of their culture 49m14s.

Personal Favorites and Chanel's Essence

• Leena Nair's favorite city in India is Mumbai, and her fashion icon is Gabrielle Chanel 49m40s.
• The first Chanel item Leena Nair ever owned was a Jumbo 2.55 bag, which she still has and considers one of her favorite possessions 50m19s.
• When thinking of Chanel, the first word that comes to mind is "surprise" and the goal is for the brand to always surprise and evoke a sense of wonder in its customers, whether through a product, event, or interaction 50m51s.
• The ideal setting for a Chanel experience would be having brunch with champagne in Paris, which is a quintessential and luxurious experience 51m14s.
• Leena Nair has been learning French and has acquired around 50 adjectives, which she enjoys using in different combinations to describe positive experiences, such as "magnific" and "incroyable" 51m27s.
• The conversation with Leena Nair has been described as simple yet magnific and incred, with a focus on using big words to convey enthusiasm and appreciation 51m54s.
• Leena Nair expressed her delight in being part of the conversation and thanked the hosts for having her, while the hosts reciprocated their gratitude for her presence 52m9s.