MUMBAI: ‘Evidence of recession’ luxurious The industry in India is facing a shortage of leadership talent.
Companies in the fashion, jewelry, real estate, and increasingly so-called ‘luxury experiences’ sectors are aggressively hiring CXOs and niche talent as they scale up their businesses later when growth escalates. This has also led to soaring salaries at CXO levels, executive search firms said.
From what used to be only 2-3 searches per year, Claricent Partners is now handling 7 to 8 searches, including CEOs as well as senior executives, said the managing partner of the executive search firm. suitably qualified with a high degree of expertise. Jyoti Bowen Nath. “Companies are even willing to offer a 100% jump in compensation. Large groups are diversifying into the jewelry sector and existing players are strengthening. Talent for leadership and expertise is scarce,” says Nath.
Sunit Mehrapartner at board of directors and senior executive search service company partner hunting, said, “Covid’s K-curve effect has had a dramatic impact on luxury sales. Business boomed in India, leading to an unprecedented shortage of leadership talent. Hunt Partners has closed a number of senior positions for luxury brands such as Shaze, TBZ, Raymond and Pernod Ricard. Mehta said the numbers for 2022 tripled from the pre-pandemic period.
CXO search company India Agreementhas also seen an uptick in duties this year with consumers spending on luxury homes, cars, paintings, watches and jewelry, as well as luxury experiences like travel calendars, clubs and food. Sonal Agrawal, managing partner at Accord India and global president at AltoPartners, an international alliance of leadership seeking companies, said: “Luxury sales is a lot about perception and experience. as well as product and companies are trying to find people who can appreciate and balance experience with the underlying cost of operations, supply chain and construction.”
Foreign hiring options for CXO roles are also being considered. To attract such talent, Nath said, there is no choice but to shell out huge sums of money and literally roll out the red carpet. “Trades are being sweetened with ESOP plans and specially curated roles. For example, companies are willing to have someone follow a flexible interaction model as long as that individual can add value. Many creative professionals feel extremely limited when working with a single brand, and some of them are entrepreneurs who own their own high-end jewelry brand, which they don’t want to give up, “Nath added.
For the CXO role, search companies are looking for talent across multiple fields. But for specialized positions in retail, design and sales, companies look to hire employees in the same field. Industry estimates suggest that India’s luxury goods market will be worth $8. 5 billion in 2022 compared to $6 billion in 2021. It is expected to grow annually around 8% (CAGR 2021-2025).
A key part of the luxury segment is the roughly $850 million jewelry industry, which is eager to hire professional CXOs to scale operations.