5 macro-trends of the luxury industry for 2021 From China's new rise to the upcoming M&As

If there is anything certain that 2020 has made us understand, it is that the pandemic has played an accelerating role for all ongoing processes.
This is perhaps the main positive outcome of a year in which - according to McKinsey's report - the revenues of the entire industry has fallen by 93% compared to 2019 and pre-crisis activity levels are unlikely to return before the third quarter of 2022. In such an extreme and at the same time unpredictable scenario that none of the great fashion players had predicted, it is important to identify the macro trends that characterize the market in 2021 in order to face the challenges of a year perhaps even more full of surprises and twists than the previous one.

Digital first, but with a human touch

Like all economic crises, the one caused by the pandemic will leave a polarized scenario, increasing the economic gap between healthy and struggling companies.  Three acquisitions totaling nearly $20 billion dominated the last quarter of 2020. The deal of the year was finally finaled in October, when LVMH agreed to pay $15.8 billion for Tiffany, the biggest deal ever made in the luxury industry. In November, VF Corporation, which owns Timberland, Vans and The North Face, bought Supreme for $2.1 billion. And finally, at the beginning of December, there was the all-Italian merger between Moncler and Stone Island for $1.4 billion. There is a clash between mega-conglomerates (LVMH and Kering) ranging from fashion to hospitality through food, and instead those focused on a specific area or type of products, such as the New Guards Group. For the future, the eyes will be on the great players that have remained independent so far: Burberry, Prada and Valentino on everyone.