MILAN, June 16 (Class Editori) — Within four years, half of the luxury market will be absorbed by China. The country is the main driver of the industry's recovery. "From a geographic point of view, Asia and the US are driving the market recovery with Chinese consumers confirmed as the most active ones in 2022, thanks to a dynamic domestic market," Tommaso Nastasi, Partner at Deloitte, explained.
The health of the luxury industry and its resilience from the shock caused by COVID-19 pandemic are showing in the M&A market. In 2021, the number of M&A deals was slightly higher compared to the previous year and the Personal Luxury Goods segment recorded an interesting increase, especially in the Apparel & Accessories category.
Financial investors were particularly active: they were bidders in 58% of deals and sellers in 46% of cases. Private equity and venture capital funds experienced the most pronounced increase in terms of number of deals compared to the previous year and appear as the buyer involved in the largest number of deals. In terms of geography, the most significant growth was in North America (+24 deals), while the Asia-Pacific region experienced the largest decrease (-31 deals). The main indicator, however, is the record number of companies that listed during the year: nine.
According to Deloitte's survey, 50% of investors, despite the aftermath of the pandemic, are convinced that the sector will return to pre-COVID-19 levels within a year, while according to 21% it has already been able to recover fully during 2021. However, the heavy impact that the pandemic emergency has had on tourism-related segments such as hotels, cruises and restaurants —which will also be affected in 2022— still remains. Nevertheless, COVID-19 also marked a change in business strategies, such as the decision to opt for an e-commerce sales channel. Investors are confident for the year 2022 and there is a unanimous willingness among funds to invest in assets belonging to the Fashion & Luxury world, with a particular preference (53%) for the Cosmetics & Fragrances segment.
(Source:Class Editori)
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