Changing of the guard: What’s fueling the new faces in luxury?

It seems like every other week, there’s another high-profile chief executive officer (CEO) stepping down in the luxury world — and yes, people have noticed.

The frequent turnover at the highest tiers of some of the largest luxury brands seems less like a random phenomenon and more like a sign of the industry’s shifting tides. 

Just do a quick search and you’ll find an array of headlines: from Donatella Versace transitioning from chief creative officer to chief brand ambassador after 27 years to be succeeded by Dario Vitale of Miu Miu, to Jonathan Anderson’s departure from Loewe after an 11-year reign. Meanwhile, Frédéric Arnault, the 29-year-old former CEO of Tag Heuer and LVMH’s watch division, is now stepping in as CEO of Loro Piana, effective this March.

It’s not just about CEOs deciding to call it a day. As the rules of the game are being changed, the Times of India claims that this turnover marks a significant turning point for the luxury market that calls for new leadership philosophies and innovative strategies.

Consumer behavior, after all, has evolved drastically. The new generation of luxury shoppers — Gen Z and millennials — isn’t impressed by heritage or price tags alone. They’re pursuing brand values that align with their own: a strong commitment to sustainability, ethical business techniques and solid social impact. 

Luxury is no longer only about wealth and status; it’s also about authenticity and responsibility. Based on the Times of India, firms that fail to adapt quickly enough to these ideals risk becoming irrelevant, as younger people now account for the majority of luxury purchasing.

Spending habits

Fashion brands have long courted youthful consumers, as per the Business of Fashion, but the year 2025 might be a watershed moment. As economic constraints intensify, younger customers, who are generally the most financially strapped, may no longer be the dependable growth engine they once were.

More than half of Gen Z customers are concerned about their financial status in the coming year. As a result, young shoppers in the United States are adjusting their shopping patterns, with approximately 40 percent spending less on clothing. When it comes to clothing, 70 percent of Generation Z in the UK prioritizes affordability. In the United States, 73 percent say that rising costs have caused them to change their purchasing patterns.

Gen Z also uses credit more frequently than previous generations. In the United States, 15 percent of Gen Z credit card users have maxed out their borrowing in the first quarter of 2024, more than any other generation. Furthermore, Gen Z is the least loyal fashion consumer generation.

Different skills

Then there’s the money aspect. Luxury behemoths are no longer merely family-run ateliers; they are gigantic, publicly traded enterprises under continual scrutiny from shareholders. According to the Financial Times, with economic slowdowns in key countries such as China and the United States, boards are becoming increasingly impatient, often trying to replace CEOs who aren’t generating quick, tangible results. The pressure is on to continue growing while navigating an increasingly turbulent and competitive market.

It’s also a shift in the kind of leadership companies are looking for. Caroline Pill of Heidrick & Struggles put it plainly, “The types of leaders needed pre- and post-pandemic are different for the next phase, a slowdown. It might require different skills.”

Gone are the days when marketing or merchandising expertise alone was enough.   Now, firms are looking for CEOs with stronger financial acumen and crisis management skills—leaders who can navigate cautious markets while also aligning with the changing expectations of a new luxury client.

Toput things into perspective, WWD reported last December that more than 50 CEOs were appointed across the fashion, beauty and retail sectors just last year alone, touching major names like Gucci, Cartier, Burberry, Estée Lauder and Nike. 

And it doesn’t stop there, new leadership has taken over at Fendi, Givenchy, Moët Hennessy, Berluti, Hublot, Zenith, Tag Heuer, Van Cleef & Arpels, Chloé, Dunhill, Buccellati, Jaeger-LeCoultre, Vacheron Constantin, Saint Laurent, Balenciaga, Balmain, Levi’s, Macy’s, Courrèges, Fred, Aspesi, A.P.C., Fear of God, Ganni, Antonio Marras, Benetton Group, Revlon, Symrise, Proenza Schouler, Ulla Johnson, Bally, Selfridges, Everlane, Wolford, Boohoo, H&M, Santa Maria Novella, Michael Kors, Tod’s, K-Way, Baccarat, Altuzarra, Beyond Yoga, Elisabetta Franchi, Vhernier, Kate Spade, Dr. Marten and Mulberry, among  others.

At the end of the day, this wave of CEO movements reveals a luxury sector in uncertainty stuck between its storied past and a rapidly changing future. 

The question is no longer, “Who’s next?” but “What kind of leader does luxury truly need now?”