Fashion players navigate a new world with contemporary attitudes
Contemporary & Accessible Fashion Spot On
How can fashion players adapt to the seismic shift in the fashion industry provoked by the lockdown? While many companies struggle to find a foothold in the post-COVID-19 market, investors must redefine key performance indicators (KPIs) to spot future stars. In the Oaklins Fashion Spot On we examine the coronavirus emergency’s short- and long-term impact on the sector’s M&A decisions and analyse the challenges presented by emerging trends and recommends actions to convert these into opportunities.
In the post-COVID-19 years, investors will have to reconsider their existing KPIs, looking beyond financial data. Such indicators might include the company’s ability to move to digital and to communicate strategically, and its flexibility to adapt.FEDERICO GIAMMARUSTO, CONTEMPORARY & ACCESSIBLE FASHION SPECIALIST, OAKLINS ITALY
Crises can create new avenues for growth, and we propose questions companies should ask themselves to determine how partnerships or acquisitions could strengthen their market position. And for investors, we identify new indicators that may prove more useful to inform decisions than established financial KPIs.
In this edition we spotlight Milan-based contemporary fashion brand Eleventy. Founder and CEO Marco Baldassari explains how private equity fuelled the company’s growth and shares his opinion on future growth drivers in the fashion industry. Eleventy’s team utilized the quarantine period to focus on new initiatives to reinvent the company’s post-crisis modus operandi, and the brand’s emphasis on comfortable, timeless style as opposed to fast-changing fashion trends aligns well with the change in consumption patterns caused by the current pandemic.
In addition we chart recent M&A activity, predicting a shift to restructuring operations, capital increases and convertible bonds, and list public company valuations, which currently reflect consumer confidence rather than financial performance.
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