The finale from Chanel’s Metier d’ Art show in Paris just days before Nair was announced as the new … [+]
In an unexpected announcement Tuesday, Chanel announced new leadership by tapping Unilever’s
This new partnership at the helm of the company, appointed by The Board of Chanel Limited (UK), will further ensure long-term success as a private company, believing in the freedom of creation, cultivating human potential, and acting to have a positive impact in the world.” Chanel said in a press release Tuesday.
Leena Nair will become the new Global CEO of Chanel in January 2022.
While Nair’s background may seem unusual, it’s becoming more and more the case with luxury fashion. Until recently, a more likely candidate was often candidates from the fashion sector, essentially life-long merchants. According to Robert Burke of Robert Burke and Associates, a retail consulting firm in New York, it’s on the way to being the norm.
“Luxury brands are becoming such big businesses in the past few years that we have seen a shift of appointing CEOs from outside the industry,” he notes, referencing Antonio Belloni. The Italian executive was one of the first to kick off the trend. He came to LVMH to be the managing director in 2001 after serving as President of Proctor and Gamble Europe. In 2017 Ralph Lauren plucked P & G Beauty Group Manager Patrice Louvet to become the President and CEO of the classic American fashion brand. Even fashion-centric Dior CEO Pietro Beccari, who has been with LVMH since 2006 when he joined as Executive Vice-President Marketing and Communications for Louis Vuitton, originally worked in General Management at Henkel in Germany, where he was Corporate Vice-President for Haircare.
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“What they are looking for is intensive corporate experience,” Burke continues. “It’s a misnomer that people who don’t come from the fashion world couldn’t understand it. It’s not the case; luxury is consumer goods.”
Jean-Phillipe Prugnaud, CEO of Mint Group in Paris, concurs, noting her appointment meets several goals starting with branching out of the French-run box. “Picking someone from outside of the fashion world proves how serious Chanel is about its diversity. Her lack of knowledge in fashion makes it clear she will not be evaluated in that field; the organization feels it has this covered,” he opines, adding, “However it is a signal that Chanel being a global company is getting serious about its capacity to maintain standards in diversity, parity at all levels of recruitment, management but also creative and communication.” He feels Nair’s experience at Unilever in global product management will contribute to a systematic approach to product life and cycles along with innovative ways to retail both globally and locally.
Burke knows that today’s companies are more than just the product they make. Nair’s background of 30-years at Unilever, culminating in the top HR spot, garnered her a global reputation for progressive and human-centered leadership, delivering significant business impact. She is currently responsible for over 150,000 employees across more than 100 countries globally.
This speaks to diversity which is at the forefront of everyone’s company values,” suggests Burke. “It’s not just about selling product. Kering has done a great job addressing this, which you see in the store’s personnel and environment, the quality of life, and sustainability practices. If Chanel wants to be more known for its core and human values, communicating that with a strong stance is important. Leena has an extensive background in HR, promoting core values and positioning.”
He feels her role signifies a bigger vision to lead Chanel into a new era focusing on people, culture, and message. “It’s certainly about a good product, that is a given, but it’s also about bringing in a new customer and relating to the next generation.
Prugnaud agrees. “I bet she has great views and plans on how to approach and seduce with the next generation of Chane customers from emerging and growing markets in Asia, Africa and South America. Choosing a woman CEO originating from one of the largest countries in the world is a really smart move.” He maintains the move shows the company wants to be 100% inclusive and allow for talents from all over the world to be attracted and grow within the group while remaining true to its French roots. “She will open up the brand to the world so it can create and communicate in an authentic way to its global customer base. And you can’t be credible unless you are authentic in your core organization,” Prugnaud adds.
Having a non-French, non-white female leading the brand has earned the iconic French house a round of applause from other female executives in the industry. Kristin Savilla, CEO of JOOR, an online wholesale selling and buying platform, welcomed the news. “It’s wonderful to see that Chanel has appointed a female CEO as they embark on this next chapter. Diversity of perspective is important in leading a successful global organization. Ms. Nair’s experience as an engineer and human resources leader will position her well to lead and evolve this iconic brand.”
Mindy Prugnaud, Partner at Mint Group, seconds the motion. “It’s great for a house like Chanel to hire a woman who is all about diversity and inclusiveness. Chanel was founded by a pioneering woman and is now being led by such an accomplished and trailblazing woman.”
The move also feels personal for Tina Bhojwani, AERA vegan shoe brand CEO and co-founder, formerly the President and CEO of Dolce and Gabbana. “It’s refreshing to see a major luxury brand hire a woman to run their business. Chanel resonates with so many women globally; hiring someone representing their consumer base makes sense,” she says, noting it wasn’t the first Chanel female CEO hire. “I applaud the company for thinking outside the fashion industry box as it tends to be insular. Seeing an established brand thinking differently about leadership is exciting. I hope this serves as an inspiration to broaden the industry’s approach to female leadership and pedigree, ultimately bringing in a fresh way of thinking. With regards to diversity, I’m proud that the owners of Chanel chose a fellow Indian woman to lead.”
Lastly, Burke wonders if the iconic brand will follow its competitors’ footsteps by becoming more active, socially conscientious, and philanthropic. Chanel had established the Chanel Foundation in 2011 aimed at ‘improving the economic and social conditions of women and adolescent girls around the world,’ according to the company website. They also support the art and young designers through their Culture Fund and Next Prize, respectively but do so quieter than some of their other marketing efforts.
“Million-dollar businesses have to operate differently today. It’s far greater than just selling luxury products. Compared to their competitors, they don’t get into philanthropic efforts publicly or have sustainability conversations. Nair seems to be well-versed in that.”
Peter Arnold, Executive Director of the Fashion Scholarship Fund and former fashion CEO, hopes Nair’s new role will engender more participation in philanthropic programs that focus on equity. “Global brands, especially global luxury brands like Chanel, have a visibility and an attendant responsibility to change the complexion of our industry. Focusing on design talent and making it more diverse and inclusive is a helpful step,” says Arnold adding, “But, the composition of board rooms and senior management is in need of change as well. Leena’s appointment is certainly an encouraging development.”
Chanel also points out that Nair is a ‘highly respected as a visionary leader whose ability to champion a long-term, purpose-driven agenda is matched with a consistently strong record of business outcomes.’ Leena is also a non-executive member of British Telecom, a member of the Board of the Leverhulme Trust, and was a non-executive Director on the UK Government’s Business, Energy and Industrial Strategy department. Leena Nair will begin her new role at the end of January next year.
