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Fashion House Chanel Hires Unilever Consumer Goods Veteran as CEO

The logo of fashion house Chanel is seen on a store in Paris, France, June 18, 2020. (Reuters)
The logo of fashion house Chanel is seen on a store in Paris, France, June 18, 2020. (Reuters)
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Fashion House Chanel Hires Unilever Consumer Goods Veteran as CEO

The logo of fashion house Chanel is seen on a store in Paris, France, June 18, 2020. (Reuters)
The logo of fashion house Chanel is seen on a store in Paris, France, June 18, 2020. (Reuters)

French fashion house Chanel named Leena Nair, an executive from Unilever, as its new global CEO on Tuesday, picking a consumer goods veteran to run one of the world's biggest luxury goods groups.

Nair's career at Unilever spanned 30 years, most recently as the chief of human resources and a member of the company's executive committee.

A British national, born in India, Nair is a rare outsider at the helm of the tightly controlled family fashion house, known for its tweed suits, quilted handbags and No. 5 perfume.

The 52-year-old follows US businesswoman Maureen Chiquet, who came from a fashion background and was CEO of Chanel for nine years until early 2016.

French billionaire Alain Wertheimer, a 73-year-old who owns Chanel with his brother Gerard Wertheimer and had originally taken on the CEO job on a temporary basis, will move to the role of global executive chairman.

Chanel was founded in 1910 by fashion legend Gabrielle "Coco" Chanel as a hat boutique on rue Cambon in Paris and grew to become a byword for French chic.

The group said Nair, who at Unilever oversaw 150,000 people, would join at the end of January and be based in London. It added that the new appointments would ensure its "long-term success as a private company."

The recruitment of Nair, who rose through the ranks of Unilever having started out as a trainee on the factory floor, comes as the fashion industry is under pressure to show a more inclusive approach.

Under her watch Unilever achieved gender parity across global management, according to a Harper's Bazaar profile published last month, which also highlighted her commitment to pay the living wage across the supply chain.

Nair serves as a non-executive board member at BT and has previously served as non-executive director of the British government's business, energy and industrial strategy department.

Chanel has fiercely defended its independence and only began publishing financial results in 2018. It said in July it expects to increase sales by double digits this year compared with their 2019, pre-pandemic level of $12.3 billion.

Bernstein luxury goods analyst Luca Solca said Chanel was following a trend of attracting top executives from the consumer packaged goods industry.

"Unilever and P&G stand tall as management reservoirs for the relatively young luxury goods industry," he said, pointing to Antonio Belloni, general manager of LVMH and a former president of Procter & Gamble in Europe, and Estee Lauder head Fabrizio Freda, also a P&G veteran.

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Fashion

As Fast Fashion's Waste Pollutes Africa's Environment, Designers in Ghana are Finding a Solution

Attendees at a thrift and an upcycle show pose for a photograph in Accra, Ghana, Sunday, Oct. 27, 2024. (AP Photo/Misper Apawu)
Attendees at a thrift and an upcycle show pose for a photograph in Accra, Ghana, Sunday, Oct. 27, 2024. (AP Photo/Misper Apawu)
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As Fast Fashion's Waste Pollutes Africa's Environment, Designers in Ghana are Finding a Solution

Attendees at a thrift and an upcycle show pose for a photograph in Accra, Ghana, Sunday, Oct. 27, 2024. (AP Photo/Misper Apawu)
Attendees at a thrift and an upcycle show pose for a photograph in Accra, Ghana, Sunday, Oct. 27, 2024. (AP Photo/Misper Apawu)

In a sprawling secondhand clothing market in Ghana’s capital, early morning shoppers jostle as they search through piles of garments, eager to pluck a bargain or a designer find from the stalls selling used and low-quality apparel imported from the West.
At the other end of the street, an upcycled fashion and thrifting festival unfolds with glamour and glitz, The Associated Press reported. Models parade along a makeshift runway in outfits that designers created out of discarded materials from the Kantamanto market, ranging from floral blouses and denim jeans to leather bags, caps and socks.
The festival is called Obroni Wawu October, using a phrase that in the local Akan language means “dead white man’s clothes.” Organizers see the event as a small way to disrupt a destructive cycle that has made Western overconsumption into an environmental problem in Africa, where some of the worn-out clothes end up in waterways and garbage dumps.
“Instead of allowing (textile waste) to choke our gutters or beaches or landfills, I decided to use it to create something ... for us to use again,” said Richard Asante Palmer, one of the designers at the annual festival organized by the Or Foundation, a nonprofit that works at the intersection of environmental justice and fashion development.
Ghana is one of Africa's leading importers of used clothing. It also ships some of what it gets from the United Kingdom, Canada, China and elsewhere to other West African nations, the United States and the UK, according to the Ghana Used Clothing Dealers Association.
Some of the imported clothes arrive in such poor shape, however, that vendors dispose of them to make room for the next shipments. On average, 40% of the millions of garments exported weekly to Ghana end up as waste, according to Neesha-Ann Longdon, the business manager for the Or Foundation’s executive director.
The clothing dealers association, in a report published earlier this year on the socioeconomic and environmental impact of the nation’s secondhand clothing trade, cited a much lower estimate, saying only 5% of the items that reach Ghana in bulk are thrown out because they cannot be sold or reused.
In many African countries, citizens typically buy preowned clothes — as well as used cars, phones and other necessities — because they cost less than new ones. Secondhand shopping also gives them a chance to score designer goods that most people in the region can only dream of.
But neither Ghana's fast-growing population of 34 million people nor its overtaxed infrastructure is equipped to absorb the amount of cast-off attire entering the country. Mounds of textile waste litter beaches across the capital, Accra, and the lagoon which serves as the main outlet through which the city’s major drainage channels empty into the Gulf of Guinea.
“Fast fashion has taken over as the dominant mode of production, which is characterized here as higher volumes of lower-quality goods,” Longdon said.
Jonathan Abbey, a fisherman in the area, said his nets often capture textile waste from the sea. Unsold used clothes “aren’t even burned but are thrown into the Korle Lagoon, which then goes into the sea,” Abbey said.
The ease of online shopping has sped up this waste cycle, according to Andrew Brooks, a King’s College London researcher and the author of “Clothing Poverty: The Hidden World of Fast Fashion and Second-hand Clothes.”
In countries like the UK, unwanted purchases often end up as charity donations, but clothes are sometimes stolen from street donation bins and exported to places where the consumer demand is perceived to be higher, Brooks said. Authorities rarely investigate such theft because the clothes are "seen as low-value items,” he said.
Donors, meanwhile, think their castoffs are “going to be recycled rather than reused, or given away rather than sold, or sold in the UK rather than exported overseas,” Brooks said.
The volume of secondhand clothing sent to Africa has led to complaints of the continent being used as a dumping ground. In 2018, Rwanda raised tariffs on such imports in defiance of US pressure, citing concerns the West's refuse undermined efforts to strengthen the domestic textile industry. Last year, Ugandan President Yoweri Museveni said he would ban imports of clothing “from dead people.”
Trade restrictions might not go far in either reducing textile pollution or encouraging clothing production in Africa, where profits are low and incentives for designers are few, experts say.
In the absence of adequate measures to stop the pollution, organizations like the Or Foundation are trying to make a difference by rallying young people and fashion creators to find a good use for scrapped materials.
Ghana's beaches had hardly any discarded clothes on them before the country's waste management problems worsened in recent years, foundation co-founder Allison Bartella said.
“Fast forward to today, 2024, there are mountains of textile waste on the beaches,” she said.