Anyone working in the luxury fashion sector would need to have been living under a rock not to see that the industry is in utter disarray, facing more challenges than I can ever remember. And I’ve been through many! A lot of this is self-inflicted, but we are also being buffeted by many external factors.
Global growth is forecast to slow to just 2.3% in 2025. At the same time, the Economic Policy Uncertainty Index recently hit its highest mark this century.
This uncertainty leads to serious tension for employees in the luxury fashion sector as teams start to ask questions.
· Is the company okay?
· Is my job stable?
· What does this mean for me?
It’s no wonder “resilience” has become such a buzzword. In 2024, the use of that word among Fortune 500 companies shot up by 200% in earnings calls. However, just because business leaders are prioritising resilience, doesn’t mean they’re feeling it. Around 84% of companies don’t feel equipped to deal with the uncertainty they face.
The truth is, building team resilience isn’t just about surviving the current economic confusion. It’s about unlocking long-term stability and a competitive advantage by investing in people, transparency, and leadership that leads with heart.
Understanding Team Resilience in an Economic Context
Team resilience in the fashion industry isn’t just about bouncing back from what’s going on right now. It’s about bouncing forward. It’s that rare ability to meet uncertainty with clarity, regulate stress in healthy ways, and move from “What now?” to “Here’s what we’ll do.”
The benefits of that shift are massive. According to Harvard Business Review, companies with resilient cultures outperform their peers by 8% in productivity gains during economic slowdowns. But achieving true resilience is getting tougher in today’s luxury landscape.
Inflation still looms. Banks are being cautious and restricting lending criteria. US tariffs and the suspension of de minimis imports are hitting hard in that major market. Turmoil in the Middle East is also having an impact. In addition, we’re watching an enormous workforce transformation unfold. By 2030, an estimated 92 million jobs could be displaced by AI and automation, though 170 million new ones could be created (WEF, 2025 Future of Jobs report).
Most teams aren’t prepared. Only 23% of employees feel equipped with resilience and adaptability skills, according to research by McKinsey.
So, what’s holding organisations back?
Often, this is the default to short-term thinking: a stress management workshop here, a one-off change management meeting there. But resilience doesn’t work like that. If we expect Fashion and Luxury teams to endure change and thrive through it, we need to start designing for adaptability, not just stability.
Leadership Communication as the Foundation
When things feel shaky in the market, across the industry, or just inside your business, it’s natural for leaders to hold back. You might think, “I’ll wait until I have the full picture before I say anything.”
But here’s the thing: people often imagine the worst without communication because silence isn’t neutral: It’s unsettling. I hear this time and again in the calls I receive.
In the absence of information, people don’t assume the best. They fill in the blanks, which rarely ends with, “Everything’s going great!”
Silence doesn’t calm anyone; it creates a vacuum. And in uncertain times, that vacuum gets filled with anxiety and speculation. Uncertainty doesn’t require perfect answers. What it needs is presence. A steady voice.
That means saying, “Here’s what we know. Here’s what we don’t. And here’s what we’re trying to do about it.” That kind of honesty builds trust and confidence.
McKinsey says employees who feel their company is transparent are 12 times more satisfied in their roles.
Of course, communication isn’t just about updates; it’s also about listening. Some of the most powerful words a fashion leader can say are, “What do you think?” Inviting people to share their ideas and concerns tells them they matter.
Surprisingly, you might uncover a solution you haven’t thought of yet.
Then there’s how you show up. Leaders set the emotional temperature in any workplace. Calm, candid, and compassionate leaders make a difference. When people see their leaders handling pressure with composure, they feel more equipped to do the same.
Finally, great communication needs rhythm and structure. That might mean monthly town halls (virtual or in-person), weekly email updates, or quick check-ins that keep people connected and informed. What matters most is that people hear from you regularly, not just during a crisis.
Employee Wellbeing and Psychological Safety
When the outside world feels unstable, your workplace needs to feel like solid ground. Easier said than done in the fashion industry. That means creating a culture where people feel safe, supported, and genuinely cared for as human beings, not just employees.
Resilience thrives in fashion brands where teams can ask questions, admit mistakes, and speak up without fear. That’s psychological safety.
You can build it by keeping feedback flowing, making room for honest conversations, and treating mistakes as learning opportunities. When leaders model vulnerability and celebrate contributions, big or small, it sends a powerful message: you belong here.
Supporting Mental Health, Every Day
Mental health is now a central part of performance and retention. Studies show stress and burnout are still among the top reasons people leave jobs. Something worth remembering as we approach Fashion Week, yet again, in this ever-hectic fashion cycle.
The good news? Support systems make a difference. Confidential counselling through Employee Assistance Programs (EAPs), trained managers who can spot signs of distress, and a genuine respect for work-life balance go a long way.
Wellness programs don’t have to be complicated or expensive; they need to be relevant. Explore flexible schedules, wellness challenges, meditation apps, and healthy food options. It’s about showing your team that their health matters, not just their output.
The most successful wellbeing programs listen and adapt. Run regular pulse checks. Watch for signs like rising absenteeism or staff turnover. Most importantly, ask your people how they’re doing, then act on what you hear.
Skills Development and Adaptability
The pace of change right now is insane. Every fashion company is exploring new tools, shifting markets, and evolving role requirements. What worked three months ago might be outdated today. That’s what makes talent development such a crucial part of resilience.
Here’s something we know for sure: people want to grow. A growing number of employees are actively asking for more learning opportunities. It is formal training and real skill-building that feels useful, timely, and empowering. Explore:
· Workshops that help people stay ahead of industry shifts or master new technologies.
· Mentorship that connects junior talent with more experienced voices, not just for knowledge sharing but also for confidence-building.
· Flexible access to online learning platforms so that people can learn in the flow of their day, not despite it.
It’s not about turning everyone into an expert overnight. It’s about creating a culture where learning is normal, expected, and fun.
Making Adaptability a Core Skill
Adaptability helps people adjust quickly, think creatively, and stay grounded even when things get unpredictable.
Organizations that invest in adaptability see real results: smoother change management, smarter decision-making, and fewer people feeling overwhelmed when plans shift. Here’s how you build adaptable teams:
· Give people a chance to step outside their silos. Let them join cross-functional projects, try new roles, or shadow a different team for a short spell.
· Reward curiosity. Create space for experimenting, asking questions, and failing sometimes. That’s where growth lives.
· Ensure people have the tools and time to develop new skills. (Stretching without support leads to burnout, not growth.)
Technology Integration
Technology sometimes gets a bad rap; many think it’s out to replace people. But the right tech, used correctly, can improve people’s jobs.
Automation can free up time to focus on meaningful work. Smart tools can help teams stay aligned, make faster decisions, and spot problems early. But the rollout has to be thoughtful.
That means:
· Training, not just announcements. People need to feel confident, not confused.
· Choosing intuitive tools that solve a problem, not just shiny new software.
· Encouraging input from the people who’ll use the tech every day. They know what works (and what doesn’t).
When teams are trained and empowered, technology becomes less intimidating and much more exciting.
Measuring and Monitoring Resilience
Resilience might feel like a “soft” trait, something you see in your team’s attitude or energy, rather than on a spreadsheet, but that doesn’t mean it can’t be measured. And if you want to strengthen it, you need to know where you’re starting from and how you're progressing.
Here’s what you can track:
· Engagement scores: An anonymous survey can allow people to share how engaged they are. If people are staying connected, contributing, and showing up with energy, that’s a strong sign your culture is holding.
· Turnover during tough times: Are people choosing to stay even when things get hard? If so, you’ve built something they trust.
· Recovery Time Objective (RTO): How fast can your team get back on track after a disruption? The quicker the bounce-back, the stronger the system.
· Adaptation speed: How long can people get comfortable with a new process or platform after it is rolled out?
· Innovation metrics: Are employees offering ideas? Are you encouraging them to? Are you tracking how often they’re implemented? Innovation is a powerful proxy for psychological safety and trust.
Remember, this isn’t just about keeping a score. Behind every number is a person; if you want the full picture, you must listen as well as measure.
Run quarterly resilience reviews, where you take time to reflect as a team on what makes people feel supported or overwhelmed. Hold post-crisis debriefs, where everyone gets involved, and invest in ongoing feedback loops that keep communication strong.
Bouncing Forward, Not Just Back
The word “resilience” gets thrown around a lot, but building resilience in the current fashion industry isn’t just about enduring hardship. It’s about learning from it. Growing through it, and using it to create a more stable, human, and future-ready foundation.
Moving forward, the most resilient businesses will lead with clarity, invest in adaptability, and put their people first. They’ll communicate openly, respond swiftly, and support their teams in weathering storms and finding their way through them.
Start with transparent communication, build psychological safety, embed learning into the culture, not just the calendar, measure what matters, and, most importantly, treat resilience with humanity, not as a core business strategy.
Because the economy may be unpredictable, but your culture doesn’t have to be.
LIFE is a search and selection firm that sources talented people for some of fashion’s most respected brands. After twenty years, we are still passionate about the work we do. That is why we only work with fashion and lifestyle brands that light us up, brands that are shaping the industry, and brands that we are proud to represent.
Talk to us about finding the right talent for your brand by emailing info@lifeinfashion.co.uk