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Global Fashion & Luxury Private Equity and Investors Survey 2023
The fashion and luxury sector remains among the most attractive for investors despite tensions linked to supply chain and logistics costs.
In the 8th edition of the Global Fashion & Luxury Private Equity and Investors Survey 2023, Deloitte presents the latest M&A trends and transactions in the sector.
In 2022, the fashion and luxury sector remained attractive to investors and financial players. Despite a difficult geopolitical and economic environment, it benefited from growing consumer demand.
The luxury sector investment playground for 2023
The segments considered the most attractive by survey respondents are:
Cosmetics & perfumes (63%), Clothing & Accessories - manufacturing (50%), Furniture (50%) and Watches & jewellery (33%). We observe an evolution in the interest shown in different segments of the market compared to last year:
- The Cosmetics & Perfumes and Clothing & Accessories - manufacturing segments show an increase of +10pts and +18pts respectively;
- The Furniture, Watches & Jewellery and Yachts segments gain +9pts, +19pts and +8pts respectively;
- On the other hand, the Hospitality, Automotive, Private Jets and Cruises segments showed a decrease of -9 points compared to the previous year.
3-year projection: investment prospects
Over the next three years, investors expect significant market growth in the Luxury Products, Restaurants, Hospitality and Furniture segments.
Hotels are in first place followed by Watches & Jewellery. The Automotive segment should be the least efficient.
Main conclusions
- In 2022, 292 M&A transactions were recorded in the sector globally with a slight increase (+8) compared to the previous year;
- The Hospitality (+16), Furniture (+15) and Watches & Jewellery segments contributed to this increase, while the Clothing & Accessories and Cosmetics & Perfumes sectors suffered a significant decline;
- Europe is the region with the strongest growth in terms of transactions (+25) while North America recorded the largest decline (-12);
- In the coming years, the Asian and Middle Eastern markets are expected to experience greater growth than those of Europe and the United States.
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