Luxury fashion brands are expected to increase their supply chain acquisitions in 2023 for better control, margins and faster market access.
The recent global supply chain disruptions led to nearshoring and vertical integration as brands sought to ensure supply. Most of the M&A deals were in Italy, known for its high-quality craftsmanship. Examples include LVMH acquiring a majority stake in Heng Long Italy and a minority stake in Robans, Chanel buying a majority stake in Paima, and Fendi taking a majority stake in Maglificio Matisse. The trend is likely to continue as brands aim to differentiate and strengthen their competitive edge by acquiring unique materials, production techniques and capacity. This supports their storytelling around provenance and craftsmanship.
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