After the sharp decline recorded in 2020 due to the Coronavirus pandemic and the gradual recovery of last year, 2022 promises to be the year for the luxury market to return to pre-Covid size and growth levels. This is the scenario that emerged from Deloitte’s Global Fashion & Luxury Private Equity and Investors Survey 2022, a report that analyzes trends and M&A transactions in the luxury market based on market data and interviews with top managers.
“In 2021 the sector recovered in the wake of the new strategies adopted by companies in the field of new technologies and the growing commitment to sustainability issues. In 2022, the luxury market is expected to accelerate further with double-digit growth and reach pre-pandemic levels. ” says Elio Milantoni, Deloitte Partner.
The seventh edition of Deloitte’s Private Equity Survey highlights the main trends in the luxury market by analyzing the point of view of a selected panel of operators in the sector. The pandemic crisis interrupted a solid growth trend in the sector in terms of turnover, which in the five-year period 2015-2019 had recorded a CAGR of + 3.4% (+ 6.5% if limited to the personal luxury goods segment).
2020, on the other hand, was a difficult year for the luxury sector, which recorded a turnaround in revenues and a worsening of margins. Compared to the previous year, sales decreased by -10.5%, with some segments in considerable difficulty, such as the hotel sector (-53.0%) and cruises (-77.7%). The only sectors that recorded positive growth were those of furniture (+ 4.2%) and yachts (+ 3.0%).
According to what emerged from the report, 50% of investors, despite the aftermath left by the pandemic, say they are convinced that they will return to pre-Covid levels within a year, while according to 21%, the sector has already been able to fully recover in 2021.