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It is a common practice for companies to hire high-profile executives
with a track record of success in order to replicate that success
within their own brands. These executives are often sought after for
their leadership skills, expertise, and ability to drive growth and
innovation. This expertise is meant to deliver deep industry insight,
savviness in trend, and the recipe for tackling hurdles all in one
package.
This may be one of the reasons Kering put Saint Laurent’s trusted
chief, Francesca Belletini, in charge of the
group’s brand development of its portfolio, as deputy CEO of Kering.
Ms. Belletini, who has a 10-year track record and has shown the
ability to lead Saint Laurent through challenges such as navigating
Hedi Slimane’s exit and stabilising the business in its design
transition under current creative officer Antony Vaccarello,
subsequently charted a serious path to growth. Saint Laurent’s revenue
has surged by around fivefold, reaching 2.52 billion euros in sales
under the leadership of Ms Belletini.
Growth is also central to the Rihanna-founded lingerie brand Fenty,
which saw the company recently appoint Hillary Super. During her tenure at Urban
Outfitters group, which is also the parent company of Anthropologie,
she boosted its omni-channel presence to over 1 billion dollars in
digital sales. With the experience of managing a diverse portfolio of
brands with different categories, from Anthropologie’s popular A+
line, its plus-size range, to driving retail and communities around
its core customers, Ms. Super is a leader that can navigate expansion.
“We have a highly engaged customer base with our DTC model and also
recognize that there is an opportunity for us to expand further by
meeting customers where they are and offering other avenues of
accessibility,” Fenty told Vogue Business when the appointment was
announced.
It is precisely the reputation and networks of high-profile executives
and their standing within the industry that can open doors to
partnerships, collaborations, and resources that might otherwise be
difficult to access. When Lanvin announced award-winning American rapper
Future to develop new ideas and concepts for the French house
it was a triad of networks, reputation, and influence that may open
doors to untapped realms for the brand. This is especially valid when
companies are looking to revitalise their collections and build a
distinct culture with their audiences. Certainly Future’s Instagram
following of 25 million (at the time of writing) will bring a decided
buzz to the brand.
Lanvin. Image: Lanvin
Securing investor confidence
The recent shake-up at Gap saw Richard Dickson, a veteran from Barbie’s
parent company Mattel, takeover the reins at the US-based retailer.
Mr. Dickson’s appointment will have in part been due to the investor
and stakeholder confidence that comes paired with hiring a well-known
executive, boosting board confidence and potentially leading to
increased investment, if not positive media coverage. The phenomenon
of the recent Barbie film, having grossed over 1.28 billion dollars at
the global box office, means Gap is hoping he will restore the same
growth for its brands as Mr. Dickson executed at the toy company.
Here, shareholders are more focused on how sales can be driven over
direct experience with fashion and fashion product. “Richard has
invaluable expertise in areas critical to the work Gap Inc. is doing
to strengthen the company for the long term,” Mayo A. Shattuck, III,
Gap’s Lead Independent Director said in a release announcing the
appointment. “And we are thrilled to have his visionary leadership as
the company redefines the future potential of Gap Inc. and its
renowned American fashion brands.”
Gap has both the PR disaster of its Yeezy collaboration to overcome, in addition
to dwindling sales. “Gap has lost its brand relevance with its core
consumer,” Jonathan Reid, director of retail and consumer at Fitch
Ratings, told The New York Times. “It’s unclear where the brand sits.
That was Mattel a few years ago.”
Delivering confidence
When it comes to turnaround situations, where a brand is facing
challenges or underperforming, hiring an executive known for turning
around struggling companies can signal to investors and the market
that the company is taking proactive steps to improve its situation.
In today’s fashion landscape, successful CEOs often need to have a
well-rounded skill set that includes understanding not only management
principles but also marketing and product development. This is
especially true in industries like fashion where consumer preferences
are constantly evolving, and effective marketing and product
strategies are essential for sustained growth.
At Gap, Mr. Dickson replaces Sonia Syngal, who was fired in 2022 as
its stock took a beating and the business faced increasing costs. But
previous hires at Gap also ended badly. Gap Inc. has long struggled
with declining sales and shifting consumer preferences. CEOs such as
Art Peck and Glenn Murphy left the company after facing challenges in
turning the business around. It may be more of a case of finding Gap’s
‘pink’ moment, like Barbie. Yet in fashion, it
will take more than one season of growth and great product to skew
consumer sentiment and make a positive dent in sales.
And herein lies the crux. Not all past successful track records
guarantee future replicas of success. In 2013, Lululemon’s founder and CEO, Chip Wilson,
stepped down amid controversies over product quality issues and
insensitive remarks. Laurent Potdevin, an LVMH veteran who grew sales
at Toms Shoes and Burton, succeeded Wilson yet abruptly left the
company a few years later following allegations of misconduct and
lagging sales.
Past track records? Not all gold guarantees future gleam
At Ralph Lauren, Stefan Larsson was brought in as its new CEO in 2015
to help turn around the company’s declining sales and brand image. Mr.
Larsson’s impressive CV from H&M to adding one billion dollars of
sales at Old Navy was not enough to replicate the success at America’s
best-loved luxury house. Creative differences with the company’s
founder and executive chairman, Mr Ralph Lauren himself, saw Mr.
Larsson leave the company just two years later.
Changes in leadership are as common in the fashion industry as they
are in the rest of the business world and can happen for various
reasons. But each business is unique, influenced by a complex
interplay of internal factors (such as leadership, culture, and
resources) and external factors (such as market trends, competition,
and economic conditions). There is no formula that will guarantee
growth or that can replicate past successes. Good leaders learn from
the past and apply the same principles and strategies that align with
a business’s unique context and goals.
But the secret sauce? It is likely an unreplicable blend.
