The ceo’s bets for 2024

2024 will be the year of managerial risk. Ceos were the protagonists of a 2023 marked by significant revolutions at the top of the major fashion houses. While some positions have become more stable, next year the knots that still keep the fashion system on edge will be untangled. As 2024 approaches, Andrea Guerra is about to complete his first year as ceo of the Prada group, and in february, it will be time to assess Pietro Beccari’s first year at Louis Vuitton. 2023 was also the year of Francesca Bellettini’s rise from ceo of Saint Laurent to deputy ceo of Kering. This pivotal moment made the Cesena-born ceo the most powerful woman in fashion. However, as new balances are defined, many questions remain open.

Where will Marco Bizzarri end up? And who will succeed him at Gucci, where Jean-François Palus was appointed interim ceo in September? There are many uncertainties and numerous speculations. Who will be the top ceos to observe in 2024, according to the market? «I am eager to see the evolution of family- and founder-led companies, such as Brunello Cucinelli, Zegna, Max Mara, Moncler, Prada, Giorgio Armani, Tod’s, Otb, Dolce&Gabbana, Salvatore Ferragamo, and Benetton, which are not part of major conglomerates like Lvmh, Kering, and Richemont», Chiara Berlendi, principal at Heidrick & Struggles Italia for the luxury, fashion, and design industries, explains to MFF. «In the coming years, their choices will have a significant impact on shaping our country’s fashion and luxury sector for the next decade. The challenge will be to preserve the positive elements of their structures while at the same time embracing influences as needed, bringing in a breath of fresh air and vitality», she adds.

Next year, the eyes of experts interviewed by MFF will remain focused on Prada group’s ceo, Andrea Guerra, who took the reins of Miuccia Prada and Patrizio Bertelli’s company in January, alongside their eldest son Lorenzo Bertelli, to facilitate generational transition. At the MFGS-Milano Fashion Global Summit 2023, in his first interview with MFF since his appointment, the former ceo of LVMH, Luxottica, and Eataly unveiled ambitious plans for the future of the Milan-based company. The main objective is to double revenues in the medium term, considering that the total turnover for 2022 amounted to 4.2 billion euros. «Our portfolio consists of three brands, Prada, Miu Miu, and Church’s, as well as the pastry brand Marchesi». «I believe we can play a proper role in the next 3-5 years, aiming for purely organic growth», the ceo commented, dismissing the possibility of further acquisitions. Therefore, Guerra’s objective is set at approximately 8 billion euros. In the meantime, he has put a temporary halt to the dual listing project in Milan that the Hong Kong-listed Company had been exploring since the previous year. «While the project remains under consideration, it is not currently a top priority», he clarified.

According to a recent investigation involving various analysts conducted by MFF, the strategic priorities for ceos to achieve substantial growth, similar to the exponential success witnessed by competitors like Gucci in recent years, must first and foremost include an increase in production, a goal that can be achieved by strengthening clienteling systems. It will therefore be necessary to rethink the retail network, with fewer but larger stores. Finally, Guerra must increase the importance of the leather goods sector and bet on its new brand, Miu Miu, which contributed significantly to overall revenue, registering a remarkable 49% increase in incomes during the first 9 months of 2023. As for Gucci, the search for a ceo for Kering’s flagship brand, a gem that generated a substantial 10.5 billion euros in revenue in 2022, is still ongoing. Following the end of the collaboration with creative director Alessandro Michele at the end of 2022, the partnership with President and ceo Marco Bizzarri, in office since 2015 and a key figure of François-Henri Pinault’s luxury giant for 18 years, came to an end on September 23. Since designer Sabato De Sarno’s debut show, the position has been vacant and filled on a “transitional basis” by Kering CEO Jean-François Palus. An appointment is thus anticipated in the forthcoming months. However, following the managerial revolution at Kering in June, one candidate is almost certainly out of the running.

«It is very likely that Francesca Bellettini was offered the leadership of Gucci at the time, given her excellent work at Saint Laurent. And it is plausible that she turned down the offer not to give up leadership of the entire group», an analyst who prefers to remain anonymous speculates. With her appointment as Kering deputy ceo responsible for brand development, the Manager, who has been in charge of the renowned Parisian brand since 2013, has also become Pinault’s right-hand person. Industry experts assert that Maureen Chiquet, the former global ceo of Chanel, who has joined the Kering board as an Independent Director and is held in high regard by the Group, is one of the most credible names to rise to the top of Gucci. «There will be a lot of work to do at Gucci, considering its reputation and size. Skilled and competent resources, as well as a highly cohesive and valid managerial team, will be crucial», Giovanna Brambilla, Founder and Managing Partner of Value Search, comments. «Overall, in 2024, attention will be directed towards executives who have demonstrated exceptional results in terms of business and revenue within their respective companies. While there are many brilliant individuals, it is ultimately figures that hold significance».

Marco Bizzarri’s destination is still unknown. In recent weeks, during a charity gala organized by the Ieo-Istituto Europeo di Oncologia-Monzino Foundation, the Bologna-born Executive explained to MFF that his non-compete agreement with Kering will expire in April 2024. From that moment on, various scenarios could play out for the Executive who led Gucci to surpass the 10-billion-euro revenue mark. Possibilities include joining another prominent company in the fashion and luxury sector or pursuing an alternative path. «Bizzarri is passionate about cooking and has passed on his passion to his family. With his son at the helm of the Dalla Gioconda restaurant in Gabicce Monte and his wife managing Osteria del Viandante in Rubiera, he might opt to immerse himself in the restaurant business with his son», speculates the anonymous expert. «It is also true that Bizzarri has tremendous energy and could easily do both. Having been part of several companies, and given his background, which is similar to Guerra’s, it would be interesting to see him in a family-run environment». The analyst also has high expectations for Pietro Beccari, the former ceo of Dior, who, along with Delphine Arnault, is now leading Louis Vuitton, the flagship of the luxury giant Lvmh, with revenues of 20 billion euros in 2022, after taking over from Michael Burke.

Patrizio Di Marco, the former ceo of Celine, Bottega Veneta, and Gucci, is now on the board of Dolce&Gabbana and a Senior Advisor to the Quadrivio Group’s Made in Italy fund. Moreover, for several months, the market has been questioning the future trajectories of two other prominent Italian executives, Marco Gobbetti and Fabrizio Freda, ceos of Ferragamo and Estée Lauder, respectively. The two companies have been showing signs of difficulty for some time, falling short of the expectations set by analysts and investors. In May, the Lauder family, owner of the US beauty giant, intervened with an internal communication sent to all employees to dispel rumors circulating in the American press that Freda was leaving due to pressures exerted by activist investor Nelson Peltz, manager of the Trian Fund Management hedge fund.

The spotlight remains focused on female empowerment

Not only important names. If top executives will continue to capture the industry’s attention in 2024, there is also a new generation ready to carve out its own prominent space in the market’s eyes. In particular, a generation of female leaders who draw inspiration from success stories like Francesca Bellettini, President and ceo of Saint Laurent and now Deputy ceo of Kering, Leena Nair, ceo of Chanel, or Francesca di Carrobio, ceo of Hermès Italy. «I believe there are several promising young Italian managers, especially two women: Benedetta Petruzzo, ceo of Miu Miu, and Francesca Toninato, ceo of 7 For All Mankind», Chiara Berlendi, Principal at Heidrick & Struggles Italia for the luxury, fashion, and design industries, explains. Analysts have high expectations for Miuccia Prada’s Brand, which is growing relentlessly quarter after quarter and reported a 49% increase in sales in the first 9 months of fiscal year 2023. Recently, Miu Miu was named the hottest brand of 2023 for the second year in a row in Lyst’s ranking. As a result, Petruzzo’s outlook appears promising. Despite significant progress in recent years and an increase in the number of women in leadership roles in the fashion and luxury industry, the road ahead is still long.

«Unfortunately, only a limited number of women have attained top positions such as Chief Executive Officer or General Manager. Despite the presence of numerous capable and highly skilled women in the fashion and high-end industry, there is still a sort of glass ceiling», Giovanna Brambilla, Founder and Managing Partner of Value Search, observes. Regardless of gender, ceos of the new generation have some advantages. «The new generations are more digitized and internationalized, frequently possessing firsthand experiences in various countries and continents», Brambilla explains. «While they may still be relatively few in number, they stand out for cultivating a sensitivity that enables them to perceive signals in a different, unfiltered manner compared to their predecessors, owing to their direct understanding of different countries and cultures». Other essential aspects for emerging ceos will be a commitment to sustainable initiatives and the ability to use geopolitical analysis to anticipate the impact that wars and other events affecting a specific area will have on a much broader territory. The keywords that define a modern leader? «Foresight, curiosity, adaptability, resilience, kindness, and geopolitical understanding», Berlendi concludes. «Ceos operate from a privileged position that, in turn, makes them the focus of attention. Therefore, they bear the responsibility of setting an example». (All rights reserved)