MADRID, Jan. 30, 2020 /PRNewswire/ -- The amount of analytical experience brought to fashion companies by new CEOs grew by 81% in comparison to predecessors, according to a report just released by Nextail. The report, which examines the professional backgrounds of more than 70 CEOs that began tenures last year in leading fashion companies (€2bn avg. revenue), uncovers new trends in industry talent selection.
Cross-industry CEO turnover reached an all-time high in 2019. While fashion companies changed leadership for a variety of reasons, the report finds that in 26.4% of cases, the main driver of CEO changes was related to fostering growth and digital transformation.
A rise of CEOs with changing professional backgrounds demonstrates that newcomers bring a new mix of skills. In the past, fashion CEO expertise primarily fell within the traditional skill sets of retail operations (Director of Operations, Country Manager, etc.) or product (Brand Director, Designer, etc.). Today, new CEOs are more likely to bring increasing analytical experience (51.4% in new CEOs vs. 28.4% predecessors). Nextail argues that this is a natural result of bringing in leadership with skills to meet new data-driven needs.
"The rise in CEOs with stronger analytical backgrounds reinforces a trend of data-forwardness in the fashion industry. These companies are relying more strongly on analytics and technology to drive digital transformation - a trend we're experiencing with our customers and seeing within the overall industry. In the next 3 years alone, retail investments in AI are expected to triple ," says Joaquín Villalba, CEO of Nextail Labs.
The report also found that 54.2% of the 2019 new joiners had previous experience in the companies they now lead, up 18.3% from predecessors. Across industries, the opposite is happening, as external replacements are outpacing internal replacements for the first time since 2013. This demonstrates a level of caution around hiring fashion "outsiders", and the importance of fashion industry CEOs being fully operational from day one on the job.
Download the full report here.
About Nextail
Nextail is a smart platform for retail merchandising. Developed by retail experts, it predicts localized demand to automate data-driven decisions. With AI and advanced analytics, Nextail lets global retailers like Versace, River Island, and Pepe Jeans transform their core merchandising processes. Within weeks, retailers boost their operational agility and increase their margins.
CONTACT: Rebecca Moy, +34693503070, rebecca@nextail.co
