The worst days of the luxury goods industry are over. There is a positive outlook in the industry. Now it is not the fight for survival but planning with a long term perspective. Analysts feel that it might result in a trend of consolidation. Luxury group Louis Vuitton taking over Bulgari in a mega deal could just be the beginning of a trend. If it serves the long term interests companies might decide to come together.
In another similar deal online fashion retailer Privalia moved this week to buy Germany’s Dress for Less in an estimated 150-200 million euro ($208 million) deal. Federico Marchetti, Yoox founder and Chief Executive, while announcing strong results of his company said that he is open to acquisitions if it fits his long term plans. He would not consider buying discount retailers as their focus is shifting to full price offerings.
Yoox operates its own multi brand websites and at the same time powers sites for top brands such as Valentino and Roberto Cavalli. They are expecting their in season apparel sales to generate 50% of their revenue by 2015. Marchetti is not really worried about a hostile bid as he sees his company more as a buyer than a target. He has ambitious plans for investments for the coming five years in technology and innovations. They are focusing on their activities in China and it would become their third largest market by 2015 behind Us, which will become their largest market this year and Italy.