Insights
Interview with Giacomo Santucci
What skills should a CEO of a subsidiary of a fashion and luxury brand have in a specific country?
When looking for a country head or a CEO, for example in the USA, what competencies should we be searching for?
First and foremost, it’s important that the candidate has built a solid reputation and credibility in the country where he has worked. Their past career should reflect skills that are well-recognized and relevant in the local market. In the field of distribution, a key quality to look for is versatility. A good CEO should be capable of handling omnichannel strategies, not just focusing on retail and e-commerce, but also understanding the broader platform economy. This is critical as the future of the industry increasingly hinges on customer engagement. Strong leadership skills are also essential, including the ability to communicate effectively with their team, provide clear guidance, and yet maintain a level of humility that fosters open dialogue. Political and mediation skills are crucial to building relationships. Lastly, sector expertise, vital experience in the luxury and fashion industry, enables a CEO to grasp business models swiftly without wasting time, providing deeper insights into the company’s operations.
What skills should an evolved CFO possess?
A CFO needs to have a deep understanding of financial analysis, particularly because the retail sector demands strong, detailed management oversight. They will be responsible for the P&L, inventory, and deciphering the market dynamics that impact retail operations. With these skills, a CFO can engage effectively with headquarters and offer valuable insights. However, in today’s environment, such skills are considered commodities. What’s now most important is the ability to anticipate change. Unfortunately, within a subsidiary, these forward-thinking insights aren't always heard, as decisions are often made at the corporate level.
How is the US market characterized?
In the United States, diversity is fundamental, not only in products and stores but especially in terms of social values and inclusion. Diversity as individuality is central to the American story. In this market, both the brand image and the person managing the brand must have strong ethical foundations and unwavering honesty. When selecting someone to run the business, the individual’s reputation and moral integrity become critical factors in the decision-making process.
What about the Japanese market? What kind of profile is ideal for a CEO there?
In Japan, reputation is even more significant, and the country’s unique cultural identity makes it vital to have an in-depth understanding of local customs, traditions, and even the Japanese language. This cultural knowledge is indispensable for successfully navigating the market.
Given that you had the responsibility of managing Gucci in Japan, what were your main challenges and perspectives?
My introduction to Asia came in the 1980s, a time when everything was much more pioneering. The fact that I was curious and could speak the language gave me a significant advantage, especially since very few people spoke Japanese at the time. My first experience in Japan was with Ferragamo, where I introduced the brand to the market, first in Japan and then in China. However, during that period, there wasn’t a strong push to invest in these countries, so I began by setting up master franchise agreements. Early on, companies tended to decentralize distribution, externalizing a lot of value. Speaking the language also helped me tremendously during negotiations, as I could understand everything being said, even inside conversations, which gave me an edge.
What are the financial challenges for publicly traded companies?
Over the past 20 years, we’ve seen that managing dialectics has become one of the most important cultural elements. The challenge lies in balancing the rhetoric of sustainability and circular economy principles with the need to scale and grow. There’s a clear tension between maintaining ethical values and satisfying stock market demands, and this tension often proves difficult to reconcile.
What is your perspective underpinning healthy brand awareness in the luxury world?
If a brand is solely focused on awareness, it risks becoming less exclusive. The key is maintaining a balance between awareness and the brand’s image. The intangible aspects of a brand particularly storytelling is becoming increasingly important, progressively making up a large part of a brand's identity. Today, the focus is shifting away from just the product to the narrative behind it. The traditional role of the designer as the sole figurehead for the brand’s image no longer holds, as the industry is evolving beyond that.
What qualities should a future-oriented CEO have?
CEOs of the future must be well-educated and knowledgeable in multiple fields, including philosophy, art, entertainment, and cinema history. Only by cultivating a broad understanding of the human experience and cultural values can a CEO effectively plan for the future. It’s essential to understand not only the culture of the country where they operate but also have a global perspective on the world.
How is fashion storytelling evolving?
The fashion world is undergoing a significant shift. In the past, the designer was the central figure, and companies invested heavily on their visibility. Today, however, the focus has shifted to the audience, not just the consumer. It’s almost like being in a theater where the audience is much more engaged and participatory. Just look at TikTokers, YouTubers, and everything happening on social media. This new audience expects to see and interact with the product and even contribute to its creation. The role of younger generations is key: they not only represent a large share of the market but also play a major role in shaping this more interactive form of storytelling. Instead of just focusing on the CFO, companies should consider hiring experts in culture, sociology, art history, and media. Essentially, a Chief Culture Manager who can help navigate these communication and product creation processes.
Which creative directors have made history, in your opinion?
I’d highlight three pillars: Miuccia Prada, Tom Ford, and Alessandro Michele. Each of them brought significant revolutions and precise positioning. In the 1990s, Miuccia Prada spoke of minimalism in a world dominated by excess, revolutionizing how brands approached their image and management by focusing on the intangible, becoming one of the first to disrupt the cultural framework. Tom Ford was another significant figure, not only a master communicator of his brand but someone who drew deeply from cinema, not just for inspiration but for the way he communicated through it. He approached fashion with a cinematic lens, creating stories that translated fashion into filmic works. Alessandro Michele, on the other hand, captured the spirit of the Millennials. Instead of offering utopian dreams, he presented a dystopian world, connecting with a misunderstood generation through his "Alice in Wonderland" inspired vision of dreamlike, surreal worlds.
How should brands communicate with Generation Alpha?
Authenticity is one of the most important factors. Generation Alpha is seeking authenticity and can easily spot when a brand isn’t genuine. Through intelligent and interactive storytelling, brands can effectively engage this generation and make them feel like an integral part of the brand experience.
In summary what is your ideal candidate?
Managing a brand and a company is a multifaceted role that demands a blend of artistic, marketing, managerial, economic, and relational skills. To be successful in today’s environment, managers must focus on key areas such as rethinking roles impacted by technology and emphasizing the development of their teams. This shift from traditional management approaches involves moving away from a culture of limitations and instead fostering an environment where decision-making and creative thinking are encouraged. In this way, every team member can unlock their full potential and feel empowered by the trust placed in them.
Innovation is also essential, as it requires moving beyond repetitive methods to explore new ways of improving efficiency and scalability. The competitive landscape is evolving, and while competition remains a central factor, collaboration and the exchange of ideas are becoming increasingly important. Organizations that can integrate diverse perspectives and foster cooperation are better positioned to succeed in the future.
Moreover, emotional intelligence is now a critical component of leadership. Managers must not only focus on achieving results but also on the well-being of their employees. Corporate reputation and a positive work environment will become as important as financial indicators, and understanding and managing emotions will be a key part of effective leadership.
Finally, there is a need to unlearn outdated beliefs that have guided managerial practices. In the face of modern challenges, it is essential to adopt new perspectives and adapt to an ever changing, dynamic business environment.