Welcome!

News Feed Item

UPDATE: Fashion and Luxury Companies Struggle to Find Top Talent, Say Industry Experts

Almost 70 Percent of Fashion and Luxury Companies Struggle to Hire Creative Directors, and Many Have Inadequate Talent Pipelines; Those Are Two of the Most Surprising Findings From a New Study by BCG and The Business of Fashion

NEW YORK, NY -- (Marketwired) -- 04/30/14 -- Executives in the fashion and luxury industries are very concerned about finding, developing, and retaining the talented professionals they need to compete today. That is the stark conclusion of The Race for Talent: Fashion and Luxury's Greatest Challenge for the Next Decade, a new State of the Industry report published today by The Boston Consulting Group (BCG) and The Business of Fashion.

"One of the biggest challenges facing luxury and fashion companies today is finding, developing, and retaining great creative and business talent," says Jean-Marc Bellaïche, a partner at BCG. Sarah Willersdorf, a principal at BCG, agrees.

Drawing on extensive research by BCG and The Business of Fashion, the report finds that 50 percent of respondents lack access to the best creative talent. And executives are not only concerned about creative roles; they are also anxious to acquire the skills needed to support a wide range of functions.

Although it's encouraging that industry leaders realize they must do more to attract and hold on to skilled employees, it is worrying to learn what's still needed to improve employer branding. Fully 40 percent of those polled admit that they still have no systematic approaches for developing an employer value proposition. Yet many have clearly invested energy and resources to build powerful consumer brands.

It's also clear that there is far to go before fashion and luxury companies tap the full potential of today's digital tools. As many as 62 percent of those polled said that their organizations do not actively use online and social forums for recruiting purposes.

Perhaps most worrying of all: companies do not put adequate emphasis on maintaining a strong talent pipeline and succession pool for their top executives. The study found that 60 percent admitted to substandard performance in this area. This weakness appears to affect large companies as much as it does small independent organizations.

Key Findings

Recruiting challenges exist across the entire spectrum of roles:

  • Design and Product. Top-notch creative directors are scarce; nearly 70 percent of survey respondents said that these professionals are "impossible" or "very difficult" to find. Technical design is another underserved area: 42 percent said that pattern makers are in very short supply.

  • Technology and Digital. It is hard to hire database managers, Web developers, and technical managers -- roles that, in a digital era, could make a big difference to a company's effectiveness. A third of the companies surveyed find it "impossible" or "very difficult" to hire an e-commerce manager.

  • Business and General Management. It is becoming more difficult to find chief executives and general managers who combine analytical and creative skills; retail, product, and brand expertise; and international experience.

  • Employer Branding. The study underscores the fact that too few companies invest enough effort in employer branding. It's something of a paradox because most of the industries' players appear to believe that substantial commitments of time, money, and resources to the branding of their offerings will create a bright halo effect that will serve to attract and retain great talent.

  • Digital Channels. The fashion and luxury industries are still heavily dependent on headhunters and recruiters, with about 40 percent of all new hires sourced via those channels. Companies must pursue digital and social channels much more eagerly.

Key Recommendations

The report confirms that companies must launch active initiatives in five areas:

  • Invest in an employer brand. An employer brand must be built and nurtured as carefully as any product brand. Every company has to find ways to tell its story and be clear about what differentiates it from others as an employer. Then the company must take those stories and messages out to current employees and potential candidates through the right channels -- and keep doing so.

  • Consider strategic workforce planning. This rigorous, systematic approach to talent defines the capabilities that a business needs to succeed in the context of its strategic objectives. It also maps the current availability of the required capabilities. By comparing the data for demand and supply, companies can then quickly see where their most crucial talent gaps lie.

  • Reinforce the use of digital and social media to source the best candidates. To create a portrait of the company that will help bolster its employer brand, companies should use all digital channels and platforms -- from Google+ and Pinterest networks to targeted e-mail programs. To augment their recruiting strategies, companies must increasingly reach out through their websites, job forums, and social media.

  • Get to know the schools (personally). Companies can get closer to pools of fresh talent by forging closer relationships with educational institutions.

  • Focus on identifying and building tomorrow's leaders. Companies need to identify both prospects and current employees who combine creative know-how with business acumen and then develop customized programs to hire, develop, and retain them.

The full findings of the report will be available by early June.

To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or [email protected].

To arrange an interview with Imran Amed, founder of The Business of Fashion, please contact Emma Clark at +44 7950 301 479 or [email protected].

About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 81 offices in 45 countries. For more information, please visit bcg.com.

About bcgperspectives.com
Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed by PC, mobile, iPad, Facebook, Twitter and LinkedIn.

About The Business of Fashion
The Business of Fashion (BoF) is a next generation fashion media company conceived for today's global and hyper-connected world. Founded in 2007 by Imran Amed, BoF is known for its authoritative, agenda-setting point of view on the global fashion industry and is an indispensible resource for fashion executives, creatives, students and entrepreneurs in over 200 countries. It has been described as "The Economist of Fashion," "A Daily Destination for Fashion's Power Players" and "The Industry Bible." www.businessoffashion.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...