In the 8^th 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.