The Future of Leadership in Fashion: What Types of Leaders Do the Next Generations Want?

As Generation Z (born between 1997 and 2012) and Generation Alpha (born from 2013 onwards) enter the workforce, fashion and luxury companies are prompted to ask themselves: do they have the means to attract, motivate, and retain this new talent?

With the sharp increase in job hopping in certain sectors, companies are facing a high rate of employee turnover. Therefore, to find solutions that allow them to retain their employees and collaborators, they must consider what promotes their long-term engagement.

Farewell to Hierarchical Leadership, Welcome to Collaborative Leadership

According to a McKinsey & Company study (2023), 78% of Generation Z employees prefer a collaborative work environment and reject authoritarian structures. If, until now, centralized and hierarchical decision-making was the norm, horizontal systems are now becoming essential:

• Transparency: Generation Z values honesty and wants to understand what is happening within the company. According to LinkedIn (2022), 73% of young employees prioritize clear communication from their leaders.

• Flexibility: Hybrid or remote work models have become a requirement. Companies like LVMH and Kering have adopted flexible policies to attract digital talent.

• Authenticity: Employees seek accessible leaders. In a Deloitte survey (2023), 80% of Generation Z workers stated that their commitment to the company increased when they perceived their leader as authentic and approachable.

• Collaboration: Several companies are rethinking their internal structures to facilitate the co-creation of ideas between teams from different departments.

Values-Based Leadership: Fashion with a Purpose

A good salary is no longer the only determining factor: candidates want to work for companies with a clear mission. Diversity and well-being influence their choice to stay with a company. According to the Fashion Transparency Index 2023 by Fashion Revolution, 71% of young people prefer to work for brands with clear policies on sustainability and labor ethics.

Here are some initiatives implemented by companies in the sector to demonstrate a real commitment:

• Sustainability: Companies like Patagonia offer bonuses to employees who use eco-friendly transportation or participate in environmental initiatives.
• Diversity and Inclusion: Balenciaga and Chanel have developed mentoring programs to promote female leadership and diversity in the industry.
• Well-being and Mental Health: In 2022, Nike implemented "Wellbeing Weeks," rest periods for its employees to improve their mental health and reduce stress.

What Skills Will Be Essential for the Leaders of the Future?

• Be Innovative: Leaders will need to be open to change and encourage experimentation.
• Have Digital Skills: Many brands are already presenting virtual collections or implementing new in-store experiences, which requires leadership capable of understanding the potential of digital.
• Focus on Continuous Learning: Skills evolve rapidly, and many houses invest in internal training. Farfetch, for example, offers programs dedicated to new technologies, as well as management and communication.

The Leader of Tomorrow: A Facilitator of Change

The leader of the future in fashion will no longer be a traditional manager but rather a facilitator of change. They will need to be someone capable of inspiring, motivating, and fostering creativity in an environment where rigid structures will no longer have a place. Companies that can transform their leadership culture to adapt to new generations will benefit from a competitive advantage.