The luxury conglomerates
After the pandemic, the luxury industry had to think about their supply chain due to stores closures and production stoppages. Fashion brands were forced to rethink their model and accelerate digital and sustainable developments. Many of them have had no choise but to open up to new inverstors or partners. There has been new agreements announced between brands and in recent years. Luxury conglomerates join forces.
Some example of theses luxury conglomerates is the Moncler Group that acquired the brand Stone Island in December 2020. Thanks to partnerships like this, Moncler increased sales by 46% in the first half of 2022. LVMH Group also acquired part of the brand Off-White in 2021.
In general, competition has increased, while investments have also increased in terms of distribution, product, communication, digitization and production chain. This atomization of the market is a reality which must be watched as strategic moves in order to guarantee the control of the Supply Chain.
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