The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Investors have long seen fashion as a risk. But while the sector benefited from increased interest from both brands and investors in the early days of the pandemic, now, that wariness has returned.
Rising inflation, the crisis in Ukraine and a slowdown in consumer spending has left many brands searching a small crowd for new backers. In the first quarter of 2022, total transaction value in the global M&A market dropped to $725 billion, nearly 23 percent lower than the previous quarter, according to research firm Global Data.
“I think we are entering a new world,” said Elsa Berry, managing director and founder of Vendome Global Partners. “All the rules we know about are no longer there.”
On the latest edition of BoF LIVE, Gary Wassner, chief executive of Hilldun Corp.; Elsa Berry, managing director and founder, Vendome Global Partners; and Pierre Mallevays, Stanhope Capital’s co-head of merchant banking join BoF chief correspondent Lauren Sherman to discuss the fluctuating appetite for fashion acquisitions and how inflation and consumer spending will affect the current climate.
The World Economic Forum in Davos, a retail convention in New York and menswear shows in Paris will command the industry’s attention. Plus, what else to watch for this week.
The owner of Lanvin, Sergio Rossi and other brands is the first fashion company to list on a US exchange in a year. But the tough economy and investor skepticism about money-losing start-ups is likely to keep others from following suit.
Kanye and Adidas, Johnny Depp and Dior: celebrity marketing can be a minefield as well as a goldmine — and social media has raised the stakes.
High-end brands continue to report record sales and profits, even as mass retailers trim their outlooks for the autumn and winter. Can it last?