Fortune India exclusive: In a world of algorithms, I hope Chanel stands as a counterforce, says Leena Nair

Luxury brand stores in India are mostly restricted to high-end malls and prized high-street addresses. But French luxury brand Chanel’s strategy seeks to democratise luxury, at least when it comes to beauty and fragrance. Not only do all the major airports in the country have a Chanel beauty and fragrance store, the brand is also available on e-commerce platforms. But isn’t luxury all about rarity? The $19.3 billion luxury conglomerate’s India-born global CEO, Leena Nair, in an interview with Fortune India, emphasises the importance of embracing change and innovating for the continuously evolving consumer without meddling with its core — the craftsmanship. Edited excerpts: As AI has made its way into every business,how important is it for a luxury brand like Chanel to be digital-first? How are you using technology to your advantage? Bold curiosity and a spirit of innovation are in our nature; we have always embraced new ideas. Even as we continue to advance our approach to digital, we never lose sight of what makes Chanel singular. My role is to make sure we do not keep up with change but help shape it. In a world of algorithms, I hope Chanel stands as a counterforce. A celebration of human creation, craftsmanship, and connection. We approach technology thoughtfully and creatively, always guided by enhancing the experience of our people, our clients, and the communities we operate in. Our Open Innovation team constantly explores emerging trends, technologies, and new ideas, ensuring we stay ahead and harness their potential to strengthen our work across the house. We also work closely with startups and leading academic institutions such as the MIT Media Lab, and recently launched the CHANEL Open Lab, designed to accelerate concepts and prototypes in co-creation with external innovators and students. You have spoken about your commitment to protecting Chanel’s legacy of human creation, craftsmanship, and relationships, while also driving innovation and adapting to a changing world. How you are driving this strategy? Human creation is the soul of our house, the foundation on which everything at Chanel is built, and something we are unwavering in protecting. Championing the artisans and creative minds whose savoir faire defines us, is the driving force behind all that we do. In fashion, at le19M in Paris, we bring together 700 artisans with centuries-old skills — embroidery, featherwork, pleating, and goldsmithing — ensuring these crafts continue to thrive for future generations. This spirit extends to fragrance and beauty, where over a century of expertise, partnerships with our flower field growers in France, and five global innovation hubs keep us constantly reimagining our fragrance and beauty creations. In watches and fine jewellery, we work with over 800 specialists in expert watchmaking craftsmanship. Last year, we celebrated the 25th anniversary of Chanel J12 with the launch of the unique J12 BLEU watch after five years of R&D. At the same time, adapting to a changing world means embracing the future. Last year, we invested over $180 million in R&D, including new manufacturing techniques, the development of new ingredients, and research into future trends. You have set a target of being net zero by 2040. How do you plan to achieve it? Luxury is all about rarity. Will it be easier for a luxury brand like yours to meet the net-zero target? We are focussed on creations that inspire and the responsibility we have to respect and nurture the people, skills, materials, and communities that make this possible. Not only within Chanel, but across the world. We are proud to be one of the first in the luxury sector to set net-zero targets for 2040. Reaching this commitment goes beyond setting targets. It’s about transforming our operations into a sustainable business that can thrive for generations to come. Our transition requires a collective effort — collaborating with our people, partners, and communities to increase our learning, share ideas and innovations, and take practical action together. While this journey is always evolving, we are committed to using our influence to drive lasting positive change. In which stage of evolution is the Indian luxury market? How do you plan to drive the Chanel story in India over the next two to three years? India is a market close to my heart, fast-growing, full of energy, and brimming with possibilities. It is one of the world’s most dynamic economies, with a culture that genuinely values craftsmanship, heritage, and savoir faire, principles that sit at the heart of Chanel. India’s luxury retail landscape continues to evolve, and retail infrastructure is expanding. Chanel currently has one fashion boutique in New Delhi and seven fragrance and beauty boutiques across India: four in Delhi-NCR, two in Mumbai, and one in Bengaluru. We have several airport locations nationwide, with a few more scheduled to open this year. Mumbai remains a priority city for us in the near future. India’s luxury market has seen strong growth in recent years, especially post-pandemic. In 2024, we launched our e-commerce business for fragrance and beauty, as well as eyewear. The market presents significant potential, and we look forward to continuously fostering the relationship. At a time when volatility, uncertainty, complexity, and ambiguity have become a way of life, how does a leader’s mindset need to change to build a business that would last the test of time? I believe leadership today is about intentionally shaping how we see and respond. Rather than framing this era as chaotic or turbulent times, I see it as a defining time, full of possibilities. Even in uncertainty, we have the agency to lead, create, and inspire. That sense of purpose is vital. For me, leadership is about clarity and conviction — knowing who we are, standing by our values, and having the courage to do things long-term. Staying relevant means engaging deeply with culture, technology, and people, and always balancing our timeless identity with an openness to evolve. Most importantly, I believe in leadership rooted in kindness and empathy, drawing on the collective wisdom of our teams and lifting others as we move forward. Business can, and should, be a force for goodness… and creation a constant source of inspiration. This belief guides me and gives me hope for the future.

Fortune India exclusive: In a world of algorithms, I hope Chanel stands as a counterforce, says Leena Nair

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