Numbers confirm the success of the luxury sector.
Specifically, according to estimates reported by Deloitte’s Global Fashion & Luxury Private Equity and Investors Survey, 2021 saw global growth of 1,140 billion euros, a figure that served to calm 2020 losses, approaching the pre-Covid 1,268 billion.
The reopening of stores and borders plays an important role in this game. The enthusiasm for newfound freedom after so many restrictions has, in fact, prompted many people to rediscover the pleasure of shopping, and, again according to industry analysts, the global luxury market has had an attractive 135% growth over 20 years ago, contributing 7.4% to Italy’s GDP.
Although global shortages in the supply of raw materials are an obstacle for the Fashion & Luxury industry, companies have still been able to meet a significant rebound in consumer demand. During the pandemic period, companies gave a boost in adopting new strategies: digitization, disruptive technologies, strong sustainability commitments and opening up to foreign markets.
The sector continued to prove a prosperous target for mergers and acquisitions, recording a slight increase in deals in 2021 compared to 2020. In particular, the Apparel and Accessories, Cosmetics and Fragrances, and Furniture sectors showed the largest increase in transactions, mainly made in Europe and North America.
In fact, the cosmetics sector is growing strongly, especially the luxury sector, which is worth more than $47 billion globally (2021 data). It is a thriving business, set to grow at an average annual rate of +5.3% over the next five years: according to Research & Market, the market will reach a value of $64.55 billion by 2027.
There is a strong concentration of cosmetics manufacturing and marketing companies in Italy. In 2021, the sector had a turnover of nearly 12 billion euros, 8.2 of which came from the Lombardy region, which concentrates 55.1% of companies (Annual report Cosmetica Italia).
It is a solid and strategic sector that represents Made in Italy in the world and is very attentive to product, packaging and raw material innovation, always with an eye on the environment.
Roncucci&Partners teams up with MILANESI Skincare, a young niche cosmetic brand from Lombardy region, which tells us about its industry experience: “MILANESI Skincare was born with the desire to create a collection of effective, natural and safe products that respond to the current needs of a skin increasingly exposed to climate change, external aggressors, urban pollution and stress. For this reason, MILANESI Skincare has designed innovative, high-performance, anti-pollution formulas that make the most of the benefits of organic and natural, 100% Italian raw materials.
MILANESI Skincare’s target audiences are two: the first is the end consumer who, through retail or e-commerce channels, looks for top-quality products for their beauty routine and appreciates brands with a focus on eco-sustainability and the search for special and effective raw materials. The second is the B2B channel with hotellerie and luxury spas, to whom we offer Amenities & Toiletries items for in-room reception and professional product lines suitable for all facial and body treatments in the cabin.
In addition to Italy, the geographical areas we focus on are Europe, the United Arab Emirates, Asia and the United States. These are countries that appreciate Made in Italy and the quality of the products, and this is also seen in the numbers.
In recent months, MILANESI Skincare together with Roncucci&Partners, has developed a development strategy targeted at some key foreign countries, proposing to them innovative products and solutions for both the retail and hotellerie channels.
Up to now, we have contacted several distributors in Turkey, Greece, UK, Ireland and Portugal who have appreciated the brand values and the quality of the products offered.
These results have helped us estimate substantial brand growth for the next 5 years, targeting luxury and niche hotel chains, and major Department Stores in Europe, Asia and the US.”
Agnès Randriamaitso
