Fashion & Luxury Private Equity and Investors Survey 2017 Global report

[Pages:56]Fashion & Luxury Private Equity and Investors Survey 2017 Global report

Contents

Preface Methodology Key takeaways Business Performance of F&L Industry M&A Deal Monitor 2016 Private Equity and Investors Survey 2017 ? Fashion & Luxury Market Outlook ? 2017 Exit and Investment Strategy ? Profile of Survey Respondents Glossary Contacts

Fashion & Luxury Private Equity and Investors Survey 2017| Summary

02 03 05 13 21 29 29 33 43 49 50

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Fashion & Luxury Private Equity and Investors Survey 2017| Preface

Preface

In 2016 several global economic and geopolitical trends had a deep impact on the Fashion & Luxury industry. Rising commodity prices, trade stagnation, new monetary policies and their influence on exchange rate dynamics, financial stimulus measures in major economies and continuous digitalization have been the main factors influencing business models in the industry. Key players are now ready to divest and reorganise their underperforming and peripheral brands, diversifying their business models in order to boost or at least sustain profits. Against this background, global investors interested in the Fashion & Luxury industry are reviewing their future expectations and strategies. In order to analyse market trends and expectations with regards to M&A activities, Deloitte has launched the second edition of the "Global Fashion & Luxury Private Equity and Investors Survey".

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Fashion & Luxury Private Equity and Investors Survey 2017| Methodology

Methodology

Contents

Geo Scope

F&L Industry business performance analysis

? Sales performance by sector ? Margins performance by

sector ? Analysis of F&L sectors'

attractiveness for investors

M&A Deal Monitor 2016

? Size of M&A deals by F&L sector

? Target company profiles ? Investor profiles ? Analysis of global deals

Private Equity and Investors Survey 2017

? F&L market outlook ? Exit and investment

strategies in 2017 ? Investors' current

portfolio of F&L assets

Global

Global

Global

? Company annual financial reports and presentations

? Deloitte expertise

Primary data level

? News and reports from major media providers

? Investor press releases

? Company press releases

Primary data level

? Online survey based on Computer Assisted Web Interviewing (CAWI)

? Interviews with Private Equity funds top management

Primary data level

? The study has been conducted with the support of Deloitte offices in: China, France, Germany, Hong Kong, Italy, Luxembourg, Singapore, Spain, Switzerland, United Kingdom, United States

? The survey targeted senior members within investment funds, with a substantial knowledge of the F&L industry

Full secondary data

Full primary data

Sectors covered Personal Luxury Goods

Apparel & accessories

Cosmetics & fragrances

Watches & jewellery

Furniture Private jets

Yachts

Luxury cars

Luxury hotels

Luxury cruises

Digital luxury1

Data source

Remarks

1 Covered only in the Private Equity and Investors Survey chapter 03

Fashion & Luxury Private Equity and Investors Survey 2017 | Key takeaways

Key takeaways

Fashion & Luxury Private Equity and Investors Survey 2017| Key takeaways

Deloitte F&L Market and M&A index

Apparel & Accessories and Watches & Jewellery are the most attractive sectors for F&L investors with strong turnover growth, profitability and increasing M&A activity.

Turnover trend index

Watches & Jewellery

Private Jets

Cars

Furniture Apparel & Accessories

Cruises Cosmetics &

Fragrances Hotels

Yachts

147 119 107 100 96 81 60 46 23

Profitability index

M&A deals index

Apparel & Accessories Watches &

Jewellery Cosmetics &

Fragrances

Cruises

Cars

142

Apparel & Accessories

130

120

Hotels

77

106 94

Watches & Jewellery

Cosmetics & Fragrances

55 32

89

Furniture

16

Hotels

78

Private Jets

14

Private Jets

71

Yachts 10

Furniture

59

Cruises 1

Yachts 12

Cars 0

Note: The Index has been computed as the variance of sectors' value on the F&L industry weighted average

Note: The Index has been computed as the variance of sectors' value on the F&L industry weighted average 05

Fashion & Luxury Private Equity and Investors Survey 2017 | Key takeaways

Overview of M&A deals in 2016 by sector OverviewOovfedrveiaelws ionf2d0e1a6lsbyins2e0ct1o6rby sector

141 141

Deals in 20D1e5als in 2015

211 211+70 +70 Top luxuryTodpealulsxoufry20d1e6als of 2016

Deals in 20D16eals in 201D6eals

DealMs onth

TMarognetth

TaBrigdedter

Value (B$imdd) er

Value ($m)

Sector Sector

2015

33 Apparel & AAcpcepsasroerli&esAccessories

Hotels Hotels

51

15 Watches & WJeawtechlleersy& Jewellery

19 Cosmetics &CoFrsamgreatniccse&s Fragrances

Furniture Furniture

7

Private JetsPrivate Jets

7

Yachts Yachts

9

Cruises Cruises

0

20152016

3369 5153 1538 1922 711 710 97 01

201G6rowth

69+36 53 +2 38+ 23 22 +3 11 +4 10 +3 7 -2 1 +1

GroSwetph.

+3M6ar.

Oct. +2 Jun. + 23 Mar.

+N3ov.

+O4ct. Jul. +3 Aug. -O2ct.

+J1ul.

StarSweopo.d Strategic HoteMlsa&r. Resorts HiltoOnct.

Diamond ResoJurtns.

TumMi ar.

StaMrwaorroidott

Strategic HotAenlsba&ng Resorts

HNA HiltToonurism

DiaAmpoonlldo ResGolrotbsal

M12ar,8ri9o3tt

An6b,5a0n0g HToN6u,A4ri9sm7 AGpl2oo,b2llao2l4

TumSai msonite Sa1m,8s0o9nite

12,893 6,500 6,497 2,224 1,809

TooNFaocve.d TooEsFta?ceeLdauderEs1t?,4e5L0auder 1,450

Goodwood HoteOlct.

GooHdowteol od HotHeol ldings

Ho1t,e3l89 Holdings

1,389

It CoJusml. etics It CLo'Osmr?eatlics L'O1,r2?0a0l

1,200

Whistler BlacAkucogm. b.

WhVisatilleRresorts Blackcomb.

Va1il,0R5e1sorts

RIMOWA GmbOHct.

RIMLOVMWHA GmbH

LVM7H16

1,051 716

DonJnual. KaranDonGn-aIIIKAaprapnarelG- I6II5A0pparel 650

NoNStoeou:ttrehc:eet:haEnelaaalbynsoaisrlyacsNStoiiosonousntciredoco:enentrs:hsiDEedbleeaoalbrtonshoiatbcrltylaeoosttsiiihnsoedtncceolaololnninsgdseeiDaddnneecanlreonosiddutbtnaeaoctnateihnndtocdeulelolnaisglceseeddnducardenineddgaala2stn0ad1nu6oruinngce2d01d6eals during 2016 Source: Elaboration on Deloitte intelligence data

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