>> you always look different because you're the first woman, the first brown person, the first person of color to lead a global luxury brand. people don't know what to expect. francine: she's in charge of chanel. the french fashion house known for its iconic designs and

fragrances made the avant-garde move to a pointer of the top job. previously a human resources better and, she spent three decades at unilever before switching from consumer goods to hot could tour and beauty. the firm's history is legendary from its founder to its fans, including marilyn monroe. for lena nair, it's a chance to make history. on this episode of leaders with laqua, i speak to lena nair about her professional and personal journey. how it defines her leadership style and her unique approach at the top of luxury. thank you so much for joining us here on bloomberg. lena: delighted to be here. francine: what's it like being the chanel chief executive? lena: it's creative, energetic, vibrant, the sectors doing well, it's a great place to be. francine: what difference do you want to make at chanel, on the business, 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 is unique about us. and by evolving as a scaled iconic business and brand. it's always important to understand the context we operate in. the context we have externally is a very dynamic. macro economic challenges, inflation, complete fragmentation, ecosystems, winning hearts and minds of people is so difficult in today's day and age. we see all of that externally. ai. there's not a week you don't hear about ai. 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,

we have more than double the number of people who work for us, we have more than doubled our distribution presence, we have more than doubled the number of countries we have presence in. that's a lot of growth. my role, along with my view leadership team is to ensure we make coherent these changes, that we make sense of these changes and they are constantly shaping what's next. francine: chanel was this beautiful, high-end luxury, everybody wanted the product but it was always secretive. there's been an opening the last couple of years through cultural events, podcasts, why is that? can a high-end luxury company no longer be secretive in 2024? lena: never having to bid in the world of refinement, didn't know what to expect when i came to chanel, it's 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 say things unless we really done then. high integrity. 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 opening up has been as we grow larger and i explain the internal context, we've been through let -- rapid growth, being in so many markets and having people work for us, it becomes important to be clear and open about who we are, what we stand for. it's a 100-year-old company. it's important to be a beacon of inspiration for the next 100 years. francine: it is up because we buy luxury differently so that clients and customers want more of a story than they did 10, 15 years ago? leena: i think there is no typical client and no one reason to engage in luxury. we see all kinds of clients. people who are longtime fans of chanel, people who are dedicated buyers. people who are first-time

buyers. first-time buyers are 30% of our clients. which is a lot. we see a lot of gen z and alpha. 35% by 2030 will be gen z and alpha. that the vibrancy, the vitality is huge because each of those clients has a different set of reasons for why they engage with us. they buy because they want to buy less and by better. they want to buy it because they say 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 a story and engaging in a ways to also see clients. francine: you have to speak differently to the younger generation. leena: not really, our story of craftsmanship and how many hours goes into making this jacket, like a hundred 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. that is still a big reason how people look at luxury, the quality being part of that. in the story of gabriel chanel in the story of her dna and what she means for us. her spirit of innovating in radical ways. when she designed close, it was about the freedom of movement. it was about creating cross body bag so that women could ride bikes and ride horses. it's about supporting women to be and become whoever they want to be and become. it's about being on this journey of self-discovery with women in 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. that story still engages, no matter what age we are. the core of our story doesn't change. how we see at my change. the more channels we can count, there's all sorts of things, instagram, tiktok. the media channels might change, the ecosystems might change, but the core of our story is still very much who we are as chanel. francine: if you like when you talk about her, it's talking about a little bit of 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. the world of luxury refinement and sophistication was very far away from where he grew up. it was a small town like many

other, most of my memories are of me running barefoot in the town and having my little bike and running around. women being ambitious was not the norm. i remember my mother constantly telling me who will marry you, you are so ambitious, do you know what you're going to do with your life? very limited access to role models, opportunities, i did engineering after convincing everybody in my family that engineering was good for girls. again, being in the minority, but learning a lot more about the world of technology, which we are all now part of. the management studies worked all over the countries. i had an all-around experience, hands-on experience. worked in frontline sales. it was a fun experience, it was an adventure. it meant being constantly

underestimated. it meant you always look different because you are the first woman, brown person, asian, the first indian, the first person of color to lead a global lecture bullet -- brand. you are always underestimated. people don't know what to expect. along with a comes a responsibility of making it easier for those who come after you. i feel a tremendous privilege, tremendous sense of responsibility to make it easier. which means questioning norms, being a role model, mentoring is many people as i can, trying to make it easier for others. francine: is there ever a challenge you actually shied away from? leena: every single thing i've done, it's almost as if every single things that it can't be done. i was in a factory and wanted 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.

i knew how a period of my people worked. in some ways it has fueled some of my determinations. it has fueled, i will show this if possible. it also gives me courage, and i'm doing it for everyone else who comes after me. it fuels my determination and encourage and i don't shy away from challenges and i always tell women who asked me for advice saying, put your hand up for the most difficult job. put your hand up for things that are challenging. go in and lean into things that are difficult and challenging. francine: coming up, chanel's leena nair on the long-term outlook for lecturing in the changing role of what it means to be a chief executive. ♪

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francine: chanel is behind the most recognizable designs and fragrances. 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. do you see that the high end luxury, does that even go higher and luxury? there's a lot of players in the fashion world and luxury world. it's really the ones that are very high that will do well. does that also justify the price increases we see action known? leena: our prices are related to our cost prices. we use exquisite raw materials in our production, as you know, is very rigorous, handmade. 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: a secondhand market is something we see more and more in the last 4-5 years. what does that mean for a company like chanel? leena: we have not been in e-commerce. we always said we want our clients to buy from our beautiful stores because we believe clients must enjoy the immersive experience, immersive physical experience with the build the relationships of the fashion advisor, the boutique assistant, which is so magical -- francine: how do you see the china market. you have a base that stays for quite some time. leena: china is a central market because of the fast adoption of luxury because of the appreciation of refinement and sophistication.

it's a very important central market for us. 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 invest in china for the long term. similar in the u.s., i see u.s. is a long-term market for luxury. designer peter marino with everything we expect initially. intimacy, beauty, things that uplift you. we believe in both these markets that are important to us. francine: it's probably tougher being a chief executive in 20 24 because of constant change and we don't really know ai brings either. leena: it is.

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 i margin one individual, no matter how bright or experience they are can have answers to all the questions, no chance. diverse perspectives, go around the room, listen to every voice. it's very important to be i'm not just listening to and dominant voices in my meeting room but all voices. francine: is that why you always lead by empathy? you lead and lift, which is not always easy. leena: in my early days in my career at unilever, when i was going to a place, in a factory and i felt it was not safe for women, i would fight the battle to make sure it was safe for women who came after me. always questioning the norms and challenges that are happening to make it easier for others who

come after me. it's beautiful and chanel has 60% of my management team are women. it's easier to set into place everything to support the development and career of all these and create a more equal world. francine: would you ever go into menswear, which chanel ever go into menswear? leena: it's a rare timer we have a female founder, female ceo, female creative director. it's a rare time. i think we support women everywhere in such a beautiful way. we do make things for men, fleury is one of the largest selling perfumes for men and i hope it stays that way. we are really by women, for women, support women and we are here to empower women on the journey of becoming. francine: there are things that people don't understand about chanel. for so long, it was all kept

in-house. how do you see all of these companies working together? leena: we are the world leader in many categories. the fashion is well known, we are in fragrances, beauty, skincare. we started working on our beacon of inspiration for the next 100 years or what we call the hundred year pant -- plan. we start putting some building blocks are just having a positive impact with the world. their sustainability and a leader of women's empowerment and girls. so we are one of the largest philanthropic early and earth stations dedicated to women empowerment and girls. francine: not many people know that. leena: 120 5 million. we have increased it. we are truly one of the largest

organizations in the world. we work with 237 partners in 50 plus countries in beautiful programs that support women to be free to shape their destiny. francine: coming up, how chanel is trying to change luxury and how her background in hr is helping to shape her mindset as a chief executive. ♪ -what've you got there, larry? -time machine. you gonna go back and see how the pyramids were built or something?

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francine: she's used to breaking convention and changing norms, including her transition from unilever and human resources to becoming the chief executive of one of the most prestigious names and 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 big luxury company to be sustainable. 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. one of the few luxury players that has set a goal of net zero 2040, so we want to reduce our carbon emissions. for example, in carbon emissions we are reducing our transport and carbon footprint to do a digital. chanel.com saw an increase in traffic at 30% with a 16

reduction in carbon footprint. francine: how much comes from hard, trying to do good, and how much is this play with consumers, because in 5, 10 years there will be more focus on this. leena: i think clients believe luxury is sustainable because we know we make a few things and we make them beautifully and we make them with hand, and that genuine desire my clients to see us. sustainability will only go up. they want to buy less and by better, which is the right mindset to engage with luxury. so it is going to be increasingly important. francine: and 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 -- what challenges risk-taking? leena: for all of us, the world

today is so complex and moving fast that you are constantly adjusting scene get ticking. for me we are courageous brand because we walk in the footprint of a courageous movement. gabriel chanel live the life she wanted. courageously passionately making the choices she wanted. one of her values his audacity. for me, audacity is important. you call it risk-taking, i call it audacity. francine: i actually prefer audacity. it has a certain cachet that i'm sure she would of love. what if you learned about yourself as chief executive? you were in charge of hr unilever, that's a massive company, hundreds of thousands of employees. is it different being in charge of a company than being in charge of hr? leena: when i was moving to chanel and a mentor told me you are doing a quadruple jump. it has changed on so many

dimensions. it's public to private. it's from anglo dutch to french heritage. i have weekly french classes. it's hr chart is seo's. is been changed on all 10 dimensions. it's been all dimensions. in luxury is very different. all the preciousness, the rarity is not available every time. it's a 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 or transferable across sectors. had he run a business across multiple countries and multiple product categories and multiple geographies in multiple cultures. how to galvanize and inspire teams across 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 and engage in a particular way. being in chanel has taught me to be more patient, more long term. the 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: 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. the biggest thing is, 100 years are now people look back and say that we had chanel did stuff today that inspires them, that help them question norms about what they are doing and these

are just 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: francine: do you think you would ipo chanel? leena: no, 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'm going to do too. one is, fall in love with the 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. the other is, which my husband tells me a lot, enjoy the

journey is much as you enjoy the destination. breathe a bit and enjoy the journey is much as. the worst piece of advice, i think most often when you get the worst piece of advice you just ignore it and forget about it. when i was in many rooms, the only woman in the room so many times in my career, i received advice like, stay quiet for as long as you can and try to blend in and you're already standing out because you look different from the rest. i think it's really important you feel safe to be who you are and it takes courage to be who you are. any change by being who you are. francine: thank you for joining us today. ♪

jason: she stopped playing, she moved on to being a business person. it reminds me a little bit in her ambition of somebody i know he used to play baseball. alex: i really connected with her. i felt ke