Chanel has appointed Leena Nair, a 30-year veteran of client items group Unilever, as international chief government, turning to an outsider to the luxurious sector because it seems to bounce again from the coronavirus-induced hit to income.
The privately held firm managed by France’s billionaire Wertheimer household stated on Tuesday that Nair, Unilever’s chief human sources officer for the previous 5 years and a member of its government committee, would assume her new function on the finish of January 2022.
She replaces Alain Wertheimer, who owns Chanel alongside his brother Gerard and took over the function from Maureen Chiquet when she left the label after “variations of opinion about strategic path” in 2016. Wertheimer will now take the function of worldwide government chair.
Nair and Wertheimer “will additional guarantee [Chanel’s] long-term success as a non-public firm”, the luxurious model stated in a press release on Tuesday.
Nair, who joined Unilever in 1992, was accountable for greater than 150,000 staff throughout greater than 100 international locations as international head of HR. However she has little expertise in luxurious vogue the place advertising and marketing ways differ drastically from mass-market merchandise.
Alan Jope, chief government of Unilever, stated Nair had been a “pioneer” and a driving pressure on its fairness, variety and inclusion agenda.
“Nair has constructed a worldwide popularity for progressive and human-centred management, delivering vital enterprise impression,” Chanel stated.
Since it’s not publicly traded, Chanel releases few monetary figures, however in June its chief monetary officer stated it was on observe to extend revenues by “double digits” this 12 months in contrast with pre-pandemic ranges of $12.3bn, with gross sales propelled by customers in China and the US.
Alongside different massive luxurious teams, like LVMH and Hermes, it has largely shrugged off the impression of the pandemic as prosperous folks proceed to splash out.
Its ready-to-wear gross sales have continued to climb underneath Virginie Viard who grew to become artistic director in 2019 after the retirement and subsequent loss of life of Karl Lagerfeld.
“Chanel has made essentially the most of excessive desirability and has materially elevated costs to beef up margins through the pandemic,” stated Luca Solca, analyst at Bernstein. “It is crucial for Chanel to comply with up with product innovation to maintain excessive desirability [in the] medium time period.”
The unfold of the Omicron variant of coronavirus might damage gross sales throughout the sector, he added.
Nair’s appointment follows an trade development of attracting prime expertise from client items into the luxurious market.
“Unilever and P&G stand tall as administration reservoirs for the comparatively younger luxurious items trade,” Solca stated. “The circumstances of Toni Belloni at LVMH and Fabrizio Freda at Estée Lauder are a benchmark on this respect.”
Antonio Belloni, managing director of LVMH, joined the corporate from Procter & Gamble in 2001. Fabrizio Freda, one other P&G veteran changed William Lauder, grandson of Estée Lauder, as chief government in 2009.