Chanel CEO Leena Nair: Lessons in Leading an Icon | WSJ Leadership Institute

Strategy & Transformation - The biggest challenge is making the pace of change coherent for everyone in the company, ensuring they can take change in digestible ways [1][21][22] - Chanel emphasizes a long-term mindset, focusing on sustainability and inclusion, viewing it as integral to the company's values for the last 100 years [27][30] - The company is committed to being an "island of coherence," leading with integrity and standing for the right things in the world [25][26] Business Performance & Investment - Chanel doubled its business to almost $20 billion in the three years before 2024, experiencing unprecedented growth [39] - Despite a 4% revenue decrease last year, Chanel continues to invest record amounts in retail expansion and client experience, with similar investments planned for this year and 2025 [34][35] - In 2024, Chanel invested $1.8 billion in retail expansion [34] Market Dynamics & Expansion - The personal goods luxury market is a huge sector, greater than $400 billion today, and tripled in size in the last 20 years [35] - Luxury sector experienced explosive growth between 2019 and 2023, growing more than 30% [36] - China is a very important market for Chanel, with over 127 boutiques and continued investment in new openings and client engagement [41][42][43] Sustainability & Social Impact - Chanel is one of the luxury brands that have set a commitment for net zero by 2040 [29] - The company is setting up a B2P hub to encourage recycling and upcycling of leather, Kashmir, wool, and silk for the entire sector [29] - Chanel's corporate foundation dedicates $125 million a year to 267 partners in 50 countries, impacting 9 to 10 million women and girls annually [28] Diversity & Inclusion - Women make up 76% of Chanel's workforce and 96% of its clients, with 60% of the top team being women [28]