PUBLISHED:

Published: June, 2018

Leadership Models in the Fashion Industry:

Which Leadership Style is Most Stylish in Today’s
Market?
Aleeza Manucot
Peter Lougheed Leadership College, University of Alberta, Edmonton, Alberta
Corresponding author: [email protected]

ABSTR ACT

The influence of fashion is inevitable in our everyday lives. With the rise of social media, anyone can
now be a trendsetter. As such, the fashion industry has become a rapidly changing industry, and many
companies are struggling to keep up with changing consumer demands. Part of the problem may be that
fashion executives continue to lead companies with a classical, hierarchical approach that is conducive
to a lack of flexibility and creativity. What should fashion companies do to stay competitive?

The purpose of this essay is to examine the importance of leadership within fashion companies and
to explore which leadership style fits best in a rapidly changing fashion market. I argue that to stay
competitive in this field, fashion company executives should consider a transformational leadership
approach in order to avoid biases thriving in hierarchies that limit their flexibility and creativity.

Ultimately, although it is difficult to completely abandon hierarchies within fashion companies, even
implementing aspects of the transformational style into a classical approach could help companies stay
relevant in today’s fashion industry.

Introduction
From neon in the 1980s to oversized sweaters in in 2013, amassing 490 million dollars in revenue that
the 2000s, fashion trends are constantly changing, year (Petro, 2017). However, by 2017, the company
and it is difficult to predict how long a certain had lost nearly 80 million dollars and consequently
design will stay in style. Some companies have filed for bankruptcy protection. How did a
survived through the volatile fashion industry for company selling products that were once status
decades. Others flourished for a short period of symbols become so unpopular in only 4 years?
time but then eventually became obsolete. For
example, True Religion reached its peak popularity The answer lies in the desires-based, as opposed

Spectrum | Interdisciplinary Undergraduate Research 1

Citation: Manucot, A. (2018) Leadership Models in the Fashion Industry: Which Received: Dec. 1, 2017
Leadership Style is Most Stylish in Today’s Market? Spectrum Issue No. 1
Accepted: Mar. 8, 2018
doi: 10.29173/spectrum37 Published: June 1, 2018
 PUBLISHED:
Published: June, 2018

to needs-based, nature of the fashion industry best fits in the current fashion industry. These
itself. Especially in the age of social media, sources were chosen because magazines and
consumer desires are constantly being influenced newspapers are targeted towards the general
by celebrity culture and peer groups. Thus, the population, who are, in turn, the consumers within
styles in demand are also constantly changing, the fashion industry. Additionally, the target
making fashion companies more prone to audience of magazines and newspapers was similar
collapse, if they are unable to adapt quickly. to that of this paper. Capturing the perspective
of consumers was essential, considering that
To avoid collapsing, it is up to company executives fashion is so prevalent in everyday life. Finally, a
to understand the demographic of their consumers case study approach was taken to study three
and to capture what these consumers truly companies that displayed either one or more of
want in their products. However, the flexibility the 3 leadership styles because their rise and fall
of a fashion company’s leadership style often spanned several years and was progressive. With
determines how easily this adaptation can be a case study approach, the type of leadership (and
achieved. Ironically, many fashion companies changes, if any) that ran the companies during this
follow a top-down, hierarchical approach under period were analyzed. As the fashion industry is
a classical style where ideas stem only from rapidly changing, case studies are effective ways
company executives. With only a small group to show progress, whether growth or decline.
of individuals holding decision-making power,
biases may arise, which can limit the ability of Three styles of leadership
a company to grow and evolve (Berman, 2017).
The classical style has historically dominated
More than ever, there is a need for alternative
organizations, for its highly structured, hierarchical
styles of leadership in fashion companies that can
approach makes it one of the most stable and
unify a group’s vision, promote risk-taking, and
reliable forms of leadership (Avery, 2004). Under the
motivate followers at all levels of the company.
classical style, one leader or group of leaders holds
In this paper, I will argue that to be competitive
the majority of decision-making power. Followers
in a rapidly changing field like the fashion
comply to the leaders’ demands out of fear or
industry today, fashion company executives
respect, but do not have much input on how decisions
should consider adopting a transformational
are being made (Avery, 2004). This is sometimes
leadership approach in order to avoid biases
beneficial, for decision-making is fast and ideas are
that ultimately limit their flexibility and creativity.
consistent. After all, there is little opposition from
external perspectives since control is centralized
Methods
at the top of the organization’s hierarchy.
The characteristics of three leadership styles:
classical, transformational, and organic, were Over the past 30 years, however, new styles of
explored, followed by an analysis of the benefits leadership have started to emerge. For example,
and flaws of each style with respect to the transformational leadership, otherwise known as
fashion industry. To provide background on these “visionary leadership”, revolves around one shared
leadership theories and concepts, a combination vision between leaders and followers. Components
of books, academic journal articles, and video of transformational leadership include influence
lectures accessed online were utilized. News through charisma, inspirational motivation,
articles from popular magazines and newspapers individualized consideration, and openness to
detailing the rise and fall of three major companies questioning and feedback (McCleskey, 2014). Under
were analyzed to explore which leadership style this style, followers are not just included, but are

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also expected to participate in the decision-making for clothes to move from catwalk to consumer has
process. Transformational leaders are receptive decreased from at least six months to, at most,
to input and must use this to maintain follower several weeks (Joy et al., 2015). Thus, flexibility
engagement and to uphold the group’s vision. was not as much of an issue for Hilfiger. In fact,
Hilfiger’s signature “preppy look” designs thrived
The newest leadership style – organic leadership until the mid 1990s, so design changes were not
– does not actually have a formal leader. Rather, actually needed to sustain company success until
there are several smaller groups, each led by at least a decade after its formation (Fox, 2010).
a leader, that work together to achieve the
organization’s goals. This style is built upon Furthermore, his classical style was likely
the idea that individuals will interact and share successful because he was already respected
ideas within their groups, then subsequently in the field for his designing skills (Belkin, 1986).
work with other groups to make decisions Hilfiger was outstandingly innovative and unique
(Zhang et al., 2014). There is no hierarchy; with his designs at the time. This likely made it
therefore, the values and overall culture that easier and more natural for followers to follow
drive decisions within these organizations are Hilfiger’s commands, which is ideal within
almost entirely determined by their small groups. a classical leadership model (Avery, 2004).
Decision-making was likely easier as well, as his
Historical prominence of classical authority was unchallenged within the company.

leadership in fashion
Counterarguments against classical
Until recently, having a classical leadership model leadership
in mega fashion companies was inevitable, and
its flaws did not harm companies. Historically, The fashion landscape since Hilfiger first built
most brands have been established around the Tommy Hilfiger has changed dramatically. With the
ideas of one person who was simultaneously the rise of low-cost, ready-to-wear fashion brands like
brand’s designer, chief executive officer (CEO), H&M, consumers are now, on average, browsing
and founder. This naturally created a hierarchy, fashion stores every three weeks in search of
which placed said person at the top. For example, new designs (Barnes and Lea-Greenwood, 2006).
Tommy Hilfiger launched Tommy Hilfiger in 1985
using his own clothing designs (Belkin, 1986). He The classical model is much too inflexible to
also managed the first advertising campaigns accommodate such quick demand. If this model
and decided what would be showcased at centralizes authority at the top of the hierarchy
fashion shows. Unrivaled at the top, how was and gives almost no power to the bottom, how can
Tommy Hilfiger highly successful in the fashion it truly capture how the consumer is changing and
industry despite being a classical leader? what the consumer wants? After all, while creative
directors have full control over the designs of
Firstly, fashion companies did not really have to collections, and marketing managers handle
adapt according to rapidly changing consumer the company’s image, store managers and retail
interests until after the late 1980s (Bhardwaj, 2009). employees at the bottom of the hierarchy have
Previously, companies could forecast consumer no input in what they sell. Ironically, they may
demands years before and subsequently design actually know more about consumers because
products that would be competitive in future they are the ones who regularly interact with
markets (Guercini, 2001). Now, the standard time them. Regardless, employees continue to follow

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directives, as high-standing executives are viewed As a result, the company was able to grow quickly.
as the most knowledgeable. Eventually, this
hierarchy may lead to authority bias, which is the However, as was seen shortly afterwards, too
tendency to agree with the actions and decisions of much centralized authority may eventually lead to
someone perceived as an expert (Wernars, 2017). employee dissatisfaction, since those at the bottom
are simply forced to follow on command. Within
In a more severe example of failed classical such toxic environments, employees become less
leadership and authority bias, former CEO Dov engaged, less productive, and less likely to voice
Charney was fired from American Apparel their thoughts (Pfeffer, 2015). In an industry like
after being accused of workplace harassment fashion where consumer desires can change within
and excessively using his power to control the weeks, maintaining the satisfaction of store or
company (Lewis, 2014). According to employees factory-level employees is crucial, for they are the
and company executives, all members of ones with the most customer interaction. Having
American Apparel were expected to regularly call a hierarchy restricts the potential flow of ideas
Charney directly, not just for concerns, but also for between them and company executives, so authority
general meetings and updates. Charney was also bias cannot be extinguished. As a result, a fashion
an infamous micromanager and used aggressive company like American Apparel, which is strictly
treatment against employees to influence led under a classical approach, remains inflexible
workplace decisions (Lewis, 2014). For instance, in the face of the changing consumer. This makes
concerns were raised about his treatment of it less competitive in today’s fashion industry.
factory-level employees amid disagreements
on a store’s inventory system (Kim, 2012).
Alternative styles of leadership: a
Unfortunately, employees were restricted from
transformational approach
voicing their workplace concerns because of an
“At Will Employment Confidentiality Agreement” Though the centralization of power in
they signed as a condition of employment (Kim, classical leadership does have some
2012). Employees therefore had no choice advantages, its inflexibility is just not
but to agree with Charney’s directives, for ideal in the fashion industry today.
he was the one with authority. Shortly after Fashion companies like Juicy Couture have failed
he was fired from the company, American in part because their classical leaders continued
Apparel filed for bankruptcy (DiNapoli, 2016). to make decisions based on their own biases
while disregarding customer and employee
In spite of the outcomes in this case study, input. They lacked a vision that was relevant to
it would be unrealistic to say that classical their present audience and, therefore, could not
leadership had no benefits at all for American adapt to changing demands. Developing a vision
Apparel. After all, decisions under this style can is characteristic of transformational leadership,
be made quickly because power is centralized and without this vision, fashion companies
within a small group (Avery, 2004). This was will struggle to adapt in today’s market.
helpful when American Apparel was first founded.
With little opposition, Charney was able to For example, Juicy Couture became famous for
design, produce, and distribute the company’s their unicolored velvet tracksuits in the early
iconic “simple t-shirts” at a staggering rate of 1 2000s (Lutz, 2014). After several years, competitor
million t-shirts per week (Business Wire, 2006). Lululemon emerged with more versatile apparel

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that targeted the same demographic and became Though it is important to acknowledge that Tommy
more popular. Despite evidence that the “ultra- Hilfiger still has a hierarchy in terms of how roles
girly” vision for Juicy Couture was no longer and tasks are distributed, the transformational
sought after, CEO Bill McComb refused to let his approach has given individuals more agency to
brand evolve design-wise (Sherman, 2013). Driven lead or at least contribute to discussions in their
by confirmation bias, he blamed the dropping Juicy areas of expertise, which is characteristic of
Couture stocks on the global recession. His vision shared leadership (Washington, 2015). Sharing
for the company was clearly outdated, but he was responsibilities has been conducive to creativity
unwilling to accept feedback from employees and and flexibility, which was previously lacking
customers. However, because he held the most under classical leadership. For instance, Hilfiger
authority, Juicy Couture maintained the status quo. gave model Gigi Hadid the power to design the
Consequently, the company continued to plummet company’s current clothing line, Tommy x Gigi,
in revenue and popularity (Sherman, 2013). even though she was not an executive. Hadid
simply had to uphold the company’s vision in her
To compete in today’s fashion industry, it may be designs. Unrestricted by a hierarchy, she was
in a company’s best interests to try a more flexible able to create a novel clothing line that was still
model like transformational leadership, otherwise youthful, positive, and sustainable. The clothing
known as “visionary leadership”. Because this line led to double-digit company sales growth
style is based on a shared vision between leaders for two consecutive seasons (Lockwood, 2017).
and followers, the company’s strategy can be
tweaked depending on what followers want, in Counterargument against
order to match present market conditions. For
transformational leadership
instance, while the Tommy Hilfiger company
was founded upon a classical leadership model
over 30 years ago, Hilfiger has re-invented A major argument against the need for

himself into a legitimate transformational leader transformational leadership is the observation

to fit today’s markets. Hilfiger has now moved that luxury companies like Gucci, among others,

past a fixation on design innovation and has seem to be doing fine under the same classical

transitioned into social innovation. After all, part leadership approach they were founded upon.

of being a transformational leader today requires Many luxury companies do still follow a strict

the ability to unify a team with a responsible, hierarchy wherein a CEO leads a small group of

socially-conscious, and inclusive vision that creative directors and marketing managers to

benefits the greater good of the company design and sell merchandise (Lerévérend, 2018).

and the world. Fittingly, Hilfiger has unified Under the full control of company executives, these

the company with a socially-conscious vision products are consistent throughout every store

of sustainability, positivity, and youthfulness and change simultaneously each new season.

through Tommy’s 3 Principles (Tommy Hilfiger

Licensing, 2015). Furthermore, the company now Though I do agree that management in these

has a separate creative director, many fashion fashion companies is more “classical” than many

designers, and has established a program others, a clear vision is actually even more integral

called “TED @ Tommy” that gives associates to luxury brands because their products are so

of any level a platform to express their ideas symbolic. After all, consumers tend to purchase

or opinions (Tommy Hilfiger Licensing, 2015). luxury merchandise because of a brand’s history,
prestige, and the way wearing such items projects
affluence (Okonkwo, 2009). Gucci, for instance,

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was founded in 1921, and has since become one founder of fashion company, RVDK, uses an
of the world’s most successful manufacturers of organic leadership style in that RVDK’s design
high-end leather goods (Kering, n.d.). Although and production happens throughout several small
Gucci has followed a classical leadership style ateliers in the Netherlands (Mower, 2018). The
since its formation, the leader’s vision has always idea behind having several ateliers stems from
been critical to the company’s success. In fact, van der Kemp’s vision of providing talented Syrian
Gucci struggled in the early 1990s under Domenico and African refugees the opportunity to showcase
De Sole’s leadership (Conti, 2011). De Sole’s vision their skills and to earn income (Mower, 2018). In
was to make Gucci’s merchandise more accessible these ateliers, employees hand-craft their own
to the public, but this consequently caused Gucci designs. As a result, almost all of RVDK’s products
to become overexposed and its image was are limited edition, which has distinguished
cheapened. When Tom Ford took over in 1994, it from other European fashion companies.
he instilled a new vision of glamor and sexuality
(Solamatina, 2016) to appeal to Gucci’s younger The organic style of running the company
audiences. He also restored the prestige of its enabled the implementation of van der Kemp’s
merchandise by eliminating cheaper, secondary transformational approach. Both styles
product lines (Conti, 2011). Consequently, Gucci’s work synergistically to instill new energy
sales dramatically increased (Solamatina, 2016). into the company that makes it stand out
and potentially renders it more competitive.
Thus, in the case of luxury brands, classical
leadership is still followed, but the incorporation Because the company was only created in
of certain elements from the transformational 2015, there is still limited data to support the
approach makes companies adaptable and effectiveness of van der Kemp’s style. This being
more competitive in the fashion industry. said, the rising prominence of RVDK on red carpets
and social media suggests that it is competing

Alternative styles of leadership: well in today’s fashion industry (Berrington, 2018).

organic leadership combined with

Limitations
the transformational approach
There are also other leadership styles like
Although classical and transformational transactional leadership and servant leadership
leadership are most common in fashion, that this paper does not explore. Though the three
the organic approach to leadership also has styles discussed (classical, transformational,
promise, especially when used in conjunction and organic) are the most pertinent to the
with the transformational approach. fashion industry, further research into how
other leadership styles could influence the
As one of the newest leadership models, organic functioning of other fashion companies may
leadership – or the “small group approach” – is help broaden the scope of this research.
more difficult to apply in the fashion industry by
itself. This may be because communication under There was also limited information on exactly
a small group approach is too difficult when how Tommy Hilfiger ran his company in the 1980s
there are many people in an organization (Avery, beyond what is included in this essay. Though
2004). Organic leadership is, therefore, usually some information about the company was
applied in combination with transformational available in archived articles from The New York
leadership. For example, Ronald van der Kemp, Times, testimonials from staff or other people

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who worked with Hilfiger at this time could not

be found. Additionally, because followers are so
fundamental to leadership, further examining
employee and customer satisfaction amid
leadership changes in companies like Juicy Couture
and Gucci would provide additional evidence on
the effectiveness of certain leadership styles.

Finally, because many of the examples used

in this paper are relatively recent, much of
the evidence provided was anecdotal and
not statistical. Perhaps in several years,
there will be more concrete numbers that
can attest to the effectiveness of different
leadership styles within fashion companies.

Conclusion

Ultimately, it is unideal for fashion companies to

continue relying on pure, classical leadership.
Although it is difficult to completely abandon
hierarchies within fashion companies, even
implementing aspects of the transformational
style into a classical approach could help
companies stay relevant in today’s fashion
industry. Embedding other leadership styles
like the organic approach to transformational
leadership may also increase its effectiveness.

I personally believe that fashion is art, and that the

fashion industry is built on a premise of creativity,
innovation, and risk-taking. A transformational
approach is flexible enough for these qualities to
thrive, while also promoting a unified vision that
makes a brand unique and sets it apart from its
competitors. Whether we accept it or not, fashion
culture is an integral part of our lives, and it is
in a company’s best interest to offer consumers
the products that they want. However, these
companies cannot survive today’s rapidly changing
fashion industry without learning to adapt. By
abandoning the status quo of classical leadership,
they are one step closer to competitiveness,
and one step further from a tragic collapse.

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