Chanel’s arrival in India back in 2005 could not have been timed worse. Just a few hours before the gala launch party, bombs started going off across the national capital in an apparent terrorist attack. The French fashion house, however, went ahead with the launch, which featured a fashion show and had the crème de la crème of society sipping champagne and nibbling canapés even as death and devastation reigned outside the colonial-era luxury hotel where the event was held.
Nearly two decades down the line, Chanel has made another India decision. This time, it checks all the boxes on the woke-o-meter. The appointment of Leena Nair (Indian-origin; British citizen, though) as its first non-white global CEO is as much an acknowledgement of the emergence of Indian talent on the global corporate stage, as it is a smart move forward for the old-world fashion establishment to show a more encompassing ‘diverse’ face. Nair, who will operate from London rather than Chanel’s headquarters in Paris, joins an elite club of Indian women CEOs of global companies, like former PepsiCo chief Indra Nooyi and Gap’s Sonia Syngal.
“I am inspired by what Chanel stands for,” Nair wrote on LinkedIn after her appointment. “It is a company that believes in the freedom of creation, in cultivating human potential and in acting to have a positive impact in the world.”
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The learning curve will be sharp for Nair, as she makes the transition from a 30-year stint at a consumer behemoth—she was chief of human resources of Unilever till January—to a niche, iconic luxury brand. In fact, one of Nair’s first assignments at Unilever was as a manager on the factory floor, a world away from the upper crust fashion label that exudes stately elegance.
However, Nair, who was born in Maharashtra, does have her secret superpower—her people skills. For a better part of her tenure at Unilever, her responsibilities included employee relations, workplace diversity and organisational development. Humility and empathy are attributes she wears on her sleeve, and those should stand her in good stead in the post-Covid corporate scene where the old rules of engagement do not apply any longer.
For Chanel, the appointment of a self-made woman achiever of Asian descent is equally a strategic move. For a brand that only the affluent can afford, Chanel may punch above its weight with global revenues of a whopping $10 billion, thanks to the enduring popularity of iconic fragrances like Chanel No.5. Yet, that is cold comfort when you realise that its revenues have seen a dip in recent years, while that of the fellow luxury conglomerate LVMH, which has brands like Christian Dior and Louis Vuitton, have gone up.
The brief for Nair seems clear: Take Chanel on its next growth phase, focusing on emerging pockets of affluence in Asia and elsewhere, and broad base the offering through collaborations and acquisitions that will boost the company’s bottom line in the post-pandemic boom years.