leena: 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're always the first. you're always underestimated. people don't know exactly what to expect. francine: leena nair is in charge of one of the most exclusive luxury brands in the

world, chanel. the french fashion house known for its iconic designs and fragrances, made the avant garde move to appoint her in the top job. previously a human resources veteran, she spent three decades at unilever before switching from the world of fast-moving consumer goods to haute couture and beauty. the firm's history is legendary, from its founder, gabrielle okechukwu, to its fans, including marilyn monroe. for leena nair, it's a chance to make history. leena: and i want to change the world but look good while doing it. francine: on this episode of "leaders with lacqua," 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 is 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: so what kind of difference do you want to make at chanel? is it on the business? is it longevity? is it what it stands for? is it sustainability? leena: you know, 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 our differentiation, protecting what's unique about us, and by evolving as a scaled, iconic business and brand. you know, it's always important to understand the context we operate in. the context we have externally is very, very dynamic. geopolitical uncertainties, macroeconomic challenges, inflation, complete fragmentation, media channels, ecosystems. i mean, winning hearts and minds of people is so difficult in today's day and age. so we see all of that externally. ai, i mean, there's not a week you don't hear about ai. so all of this is happening externally and internally.

it's been a phase of rapid growth. in the last 10 years, we have more than doubled our revenue, we have more than double the number of people who work for us, we've more than doubled our distribution presence, we've more than doubled the number of countries we have presence in. so that's a lot of growth. so my role, along with my leadership team, is to ensure that we make coherent these changes, that we make sense of these changes and we are constantly shaping what's next. francine: as far as i can remember, chanel was this, you know, beautiful, high end luxury. everybody wanted the products, but it was always quite secretive. and then there's been an opening in the last couple of years through cultural events, podcasts. why is that? i guess, is there, you know, can a can of high-end luxury company no longer be secretive in 2024? leena: you know, for me, never having been in the world of luxury or sophistication or refinement, i didn't know what to expect when i came to chanel 2.5 years ago, but a very humble company. people are truly humble.

and 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. so, high integrity. so we'd rather do things before we speak about them. so some of the shyness has been to do with that. and i think the part of the opening up is also as we've grown larger and i explained some of the internal context we've been through, 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, what we stand for. it's 100-year-old company. it's important to say what we do, to have been a beacon of inspiration all these years and continue to be a beacon of inspiration for the next hundred years. francine: is that because we're buying in luxury differently so that clients and customers now want more of a story than they maybe did 10, 15 years ago? leena: you know, i think there's no typical client and there's no one reason to engage in luxury. truly, we see all kinds of clients. people who are long-time fans of chanel, people who are dedicated

buyers of couture, people who are first time buyers. in fact, first time buyers are 30% of our clients, which is a lot. we see a lot of gen-z and alpha. 35% of luxury consumers by 2030 are going to be gen-z and alpha. it's a hard number to believe, but the vibrancy, the vitality is huge, because each of those kinds has a different set of reasons for why they engage with us. so for gen-z and alpha, they buy because they want to buy less and buy better. they want to buy because they see it's a financially wise investment, but everybody buys for a different reason. 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: but do you have to speak differently to the younger generation? leena: no, not really. our story of savoir faire, our

story of craftsmanship, our story of how many hours goes into making this jacket, like, 100 hours, all handmade, is still the core of our story, our craftsmanship, 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 very, very big reason how people look at luxury, the quality, the savoir faire being part of that, and the story of georgina chanel and the story of her dna and what it means for us, the spirit of constantly innovating in 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. so it was about supporting women to be and become whoever they wanted to be and become. it was about being on this journey of self-discovery with

women. and that core part of our story doesn't change. it is the story of being -- 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 story really doesn't change. how we see it might change. there are more channels than you and i can count today. there's all sorts of things, instagram, tiktok, everything that's coming through the media channels, my genes or the ecosystem in how we engage might change. but the core of our story is still very much who we are as chanel. francine: gabriella chanel was like a pioneer and i feel like when you when you talk about her, it's also maybe telling a little bit about your story. i mean, you have a unique story you grew up in, in a town in india where not many females were educated to a higher level. so what was it? what was that journey like? leena: it was a long journey.

it was i grew up in a small town in the southwest of india, and the world of luxury refinement, sophistication was very far away from where i grew up. it was a small town like any other. most of my memories of me running barefoot in the town or having my little bike and being around. women being ambitious was not the norm. in fact, i remember my mother constantly telling me who would marry you? you're so ambitious, and do you really know what you're going to do with your life? and so very limited access to role models, to opportunities. i did engineering after sort of convincing everybody in my family that engineering was good for girls, which is great. it was electronics and telecommunications and i quite enjoyed, again, being in the minority, but learning a lot more about the world of technology, which we all are now part of. then did my management studies worked all over the country as part of hindustan unilever. i worked -- i had an all-around experience, a hands on experience, worked in the shop floor, worked in front line sales, drove trucks in the morning, going to the trade, selling tea. so, it was a fun experience.

it was an adventure. it meant being constantly underestimated. it meant that you always looked 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're always the first. you're always underestimated. people don't know exactly what to expect. they are suspicious of what your agenda might be. 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 easier for others, constantly championing a more equal world. francine: you like a challenge. is there ever a challenge that you actually shied away from? leena: you know, every single thing i've done, it's almost as if somebody has said it can't be done. i mean, i remember i was in a factory and i said, i want to go in the nightshift. and they said, no, we don't put women in the nightshift.

i said, how will i be a successful production manager, a personal manager of a factory if i never went into a nightshift and knew how a third of my people worked? so in some ways that has fueled some of my determination. it's fueled some of my, ok, i've got to show this is possible, a sense of i'm going to go get on and do it. it also gives me courage because i feel sometimes i'm not just doing it for me, i'm doing it for everyone else who comes after me. so it gives me courage too, it fuels my determination, fuels my courage. but i don't shy away from challenges and i always tell the women who ask me for advice saying, put your hand up for the most difficult job, put your hand up the things that are challenging. you know, go in there and lean in to things that are difficult, that are 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 of what it means to be a chief executive. ♪

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 continue my rare interview with the firm's chief executive, leena nair. do you see that, again, you know, the high-end luxury doesn't even go higher in luxury? that actually there's a lot of players in the fashion world right now in luxury world. and it's really the ones that are very high that will do well. and does that also justify some of the price increases that we've seen at chanel? leena: you know, our prices are related to our cost prices. we use exquisite raw materials and our production, as you know, is very rigorous, laborious, hand-made.

so we raise our prices according to the inflation that we see, so they are really linked to the cost price. we've also 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 that we're seeing more and more in the last four to five years. what does that mean for a company like chanel? leena: you know, we've famously not been on e-commerce. we've always said we want our clients to buy from our beautiful stores because we believe that clients must enjoy the immersive experience, the immersive physical experience, where they build a relationship with the fashion advisor, the beauty advisor, the boutique assistant, which is so magical and so core to the chanel story. francine: and how do you see the china market right now compared to the u.s. market? because it's not that volatile, actually. you kind of have like a base that stays for quite some time. leena: china is a very central market for the luxury ecosystem 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 a bit of ebbs and flows. but if you keep a long-term perspective, we continue to invest. i mean, we just opened our beautiful watches and fine jewelry store on fifth avenue. it is absolutely breathtaking. designed by peter marino with everything that you'd expect in a chanel boutique, great personalization, intimacy, beauty, things that uplift you. so we believe in both these markets and they're important to us. francine: so it's probably tougher being a chief executive in 2024 than it was for the last 20 years because of this constant change.

and we don't really know what ai brings either. leena: yes, it is. it is definitely challenging. 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 that you 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 very important to me that i'm not just listening to the dominant voices in my room, in my meeting room, but listening to all voices around the table. francine: so is that what you also lead by, empathy? you always say, you know, you lead and lift, which is not always easy. leena: i remember in my early days in my career in unilever when i was going to a place in a factory, and i felt if it was not safe for women, i would go back and fight the battle to make sure it was made safer for women who came after me. it was always questioning the

norms, challenging what was happening, so i could make it easier for others who come after me. it's beautiful in chanel with 76% women, 60% of my management team are women. so it's easier to set into place everything to support the development and career of all these talented women and create a more equal world. francine: would you ever go into menswear with chanel? ever go to menswear? [laughter] leena: it's a rare time in our history where we have a female founder, a female ceo, female creative director of fashion. so, it's a rare time, and i think we support women everywhere in such a beautiful way. you know, we do make things for men. blur is one of the largest selling perfume for men, and i hope it stays that way. we really are by women, for women, support women, and we hope to empower and support women on the journey of becoming.

francine: yeah, and you're right, the perfume, i forgot the perfumes. talk to me a little bit. i mean, there's things that people don't understand about chanel. we talk about the foundation because actually for so long it was all kept, you know, in-house. but you also have other brands. like, how do you see all of these, you know, companies working together? leena: yes. you know, we are the world leader in many categories. there is all of fashion, which is well known. we are in fragrances and beauty and skincare. and one of the things as we -- as with my leadership team, which i we started working on what we call a beacon of inspiration for the next 100 years, or we call the 100 year plan, you know, constantly thinking ahead. we started putting some building blocks of it, which is, you know, having a positive impact in the world. and there is sustainability, environmental, social sustainability, and the whole idea of women's empowerment and girls. so we are one of the largest philanthropic organizations dedicated to women empowerment and girls.

francine: it's amazing, because not many people know that. leena: 125 million this year, so 100 million as soon as it came in. and now we've increased that to 125 million. so we are truly one of the largest organizations in the world. we work with 237 partners in 50, 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. ♪ (♪♪)

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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'd 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. so we want to really reduce our carbon emissions. so for example, we are -- in carbon emissions, we are reducing our logistics, transport, and carbon footprint

to do with digital. chanel.com saw an increase in traffic of 30%, but a 16% reduction in carbon footprint. francine: how much of this comes from, i guess, the heart, trying to do good, and how much does this also play with consumers? because in five, 10 years they'll be even more focused on this. leena: yes. you know, francine, i think clients believe luxury is sustainable because they know we make few things and we make them beautifully and we make them with hand. and that a genuine desire by clients to see us continue to sustainable is only going to go up. and i mentioned about more gen-z and alpha buying. they buy because they want to buy less and buy better, which is the right mindset to engage with luxury. so, it is going to be increasingly important. francine: in sustainability, do you need to be a risk taker? like, the idea that as a chief executive, i guess you need to be careful, but do you need to -- is there anything coming where you will challenge, i guess, your risk taking?

leena: you know, i think for all of us, it's the world today is so complex and moving fast that you're constantly adjusting, being a child, ticking. for me, we are a courageous brand because we walk in the footsteps of a courageous woman. gabrielle chanel lived the life she wanted. courageously, passionately. made the choices she wanted courageously, passionately. and one of our values is audacity. you know, so for me, audacity is so important. you call it risk taking, i call it audacity. francine: i actually prefer audacity. it has a certain cachet that i'm sure gabrielle chanel would have loved. what have you learned about yourself as chief executive? so you were in charge of hr for unilever. it's a massive company. it's hundreds, thousands of employees. i mean, is it different actually being in charge of a company

than being in charge of hr? leena: when i was moving to chanel, a mentor told me you're doing a quadruple jump start. so, it's change on so many dimensions. it's public to private. it's fmc to luxury. it's from anglo-dutch to french heritage. i have weekly french classes. so it's been change on all dimensions. luxury is very different for me. some sieges, you know, the preciousness, the rarity. it's not available everywhere. every time. it's the balance between timeless quest for new. it's all of that. it's different. it's 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, multiple kinds. that 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. i must say, 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's taught me to be more patient. it's taught me to appreciate a lot more. and, you know, 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 that i'm 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're 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 had made a few women in the world dream a little bit more about what they could achieve in their lives, i feel very fulfilled in my life and career. francine: do you think you'll ipo chanel? leena: oh, no. an ipo is not on the table. we love the privilege of being an independent company, being able to make long-term decisions 20, 30, 100 years on. francine: the best piece of advice and worst piece of advice you've ever been given. [laughter] leena: the best piece of advice, i'm actually going to do two. one is fall in love with the life -- job you have. don't wait for the perfect job. 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 also tells me a lot, enjoy the journey as much as you enjoy the destination. we are always in a hurry to get somewhere and you get promoted, you are thinking about the next promotion. no, no, no. just enjoy, breathe a bit and enjoy the journey as much as the destination. worst piece of advice? hmm. i think most often when you get a worst piece of advice, you just ignore it and forget about it. but, you know, i've received advice like, you know, when i was in many rooms, the only woman in the room, the only woman in the room so many times in my career, i have received advice like, you know, stay quiet for as long as you can and try and blend in. and, you know, you're already standing out because you look different from the rest. and i think that's terrible advice. i think it's really important to 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. ♪ with so much entertainment out there wouldn't it be great... ...if you could find what you want, all in one place? show me paris. xfinity internet customers can enjoy the ultimate entertainment experience and save on some of the biggest names in streaming, all for just $15 a month. get the fastest connection to paris with xfinity.

david: this is my kitchen table and it's also my filing system. over much of the past three decades, i've been an investor. the highest calling of mankind i've often thought was private equity