The last few years have seen the fashion and retail sector undergo a number of fundamental shifts, driven by changing consumer demands, the decline of the high street, and most recently and significantly, the Covid-19 pandemic. Fashion and retail leaders are asking fundamental questions about the evolving dynamics of the sector: what adaptations could enable more agile decision-making? What new approaches might supersede traditional buying and merchandising? How can we rejuvenate fashion?To investigate these questions further, we recently hosted a virtual roundtable with senior leaders to discuss the changes needed in the sector. The session provided crucial insights into the industry trends you need to know about, whether you are an industry professional, starting your own business, or seeking a role in fashion and retail. The roundtable brought together a varied group, including creative heads, merchandise directors, heads of buying, and a former retail executive who has recently stepped down from a major role to establish her own brand, Patricia Stanley Watches. All had different views on the topics discussed and the debate was lively, bringing to light several key issues for the sector to grapple with.Retail must change - but how will it happen?One of the first topics the group touched upon was the need for greater agility in decision-making to enable companies to adapt in a fast-changing market. The panellists agreed that before the onset of the Covid-19 pandemic, leadership in retail had been defined by slow decision-making and excessive deliberation, both of which had negatively impacted both product quality and sales. The consensus among the group was that now, with the pandemic driving such enormous changes in the industry, there is an opportunity to rethink company structures and commercial strategies. Several participants commented that two important facets of this transition would be the flattening of hierarchies within companies and a new and different approach to buying and merchandising. Breathing life back into fashionThis discussion led naturally into another crucial point: how can leaders create a greater level of excitement and energy in fashion? Some panellists admitted to having lost their way the past year, pointing to a wider loss of direction in the sector. Many fashion professionals are currently unsure of where to look for inspiration, and the urgency of this problem is only growing as customers become increasingly confused and disengaged by brand inconsistencies. The challenges of the ‘new normal’The group also debated the impact of virtual interviews on retail and its candidates. Many members of the panel had participated in virtual interviews over the past year and were able to relate their experiences; consistent themes emerged, reminding us of the limitations of the new normal and the virtual interviewing experience. Some had been asked to present commercial strategies during interviews, but received either poor feedback, or none at all. It is always a good idea to provide feedback to unsuccessful candidates, as failure to do so can harm employer brands, especially in the age of social media and review sites. Other panellists reported that the interviewing companies had proceeded to adopt the strategies they had presented on, then hire a more junior candidate to execute it, a practice which is unfortunately enabled by the convenience of virtual interviewing. At Michael Page, we wholly oppose this tactic and strongly discourage its use, especially considering the significant damage it can do to employer brand and reputation. The group also noted that the pandemic has accelerated the digitalisation of consumer behaviours, something which is validated by numerous studies. Research from Statista recently indicated that by 2024 e-retail sales would constitute as much as 21.8% of all retail sales worldwide.The roundtable participants all agreed that major changes are underway in the retail sector, and both strong leadership and new talent strategies will be essential in adapting to them. The need for more experienced leaders is intensifying, and the recent trend of saving costs on leadership hires will prove unsustainable if it negatively impacts sales. Similarly, evolving customer behaviours are intensifying the pressure on retailers to develop more compelling digital offerings, underscoring the need for senior creative talent. If you are a retail leader and would like to discuss these topics, and others, at one of our future events, please get in touch using the contact details below: Kerry May, Senior Consultant - Fashion and Retail, Michael Page[email protected]If you are looking for your next role in the fashion and retail sector or seeking top talent to help grow your business, reach out to one of our expert consultants for an introductory conversation.
