Leena Nair, who became CEO of Chanel in 2022 after a career at Unilever, is spearheading the transformation of one of the most iconic names in luxury during an increasingly volatile market environment.

In 2024, Chanel’s revenue declined by 4.3%, falling to $18.7 billion, while operating profit plunged by 30% to $4.48 billion. These results reflect broader headwinds in the luxury sector, including slowdowns in China’s post-COVID recovery, macroeconomic instability, and shifting consumer sentiment in Europe and the U.S.

Instead of retreating, Nair doubled down on strategic capital investments. In 2024 alone, capital expenditure rose by 43%, reaching $1.76 billion. This spending focused on:

• Modernizing supply chain infrastructure to improve resilience;
• Expanding retail operations, especially in second- and third-tier Chinese cities;
• Enhancing sustainability, from materials sourcing to emissions reduction;
• Elevating the in-store client experience in key Western markets.

Chanel has also made bold moves in its creative leadership. The appointment of Matthieu Blazy as artistic director signals a shift toward a more contemporary yet heritage-grounded brand identity.

Nair has emphasized that Chanel is playing the long game: resisting the temptation of short-term metrics in favor of brand integrity, innovation, and customer lifetime value.

Key Takeaways:

• Chanel under Nair is investing aggressively despite market contraction—defying luxury industry norms.
• Strategy centers on Asia-Pacific expansion, tech-enhanced supply chains, and creative evolution.
• Nair’s FMCG background brings a disciplined, systems-focused approach to heritage luxury.