By Hilary Milnes.
2017 saw a constant stream of successful mergers and acquisition, rumored buyouts and unfinished deals. The theme of all these fashion and beauty deals: If you can’t beat it, buy it.
Whether that’s a customer set, a technology skill or the label of your closest competitor, fashion and beauty legacy companies are shelling out more in acquisition dollars than ever before, according to a survey by Deloitte that showed acquisition spend increase by 30 percent in 2017 in the fashion and beauty sectors.
“This is the new normal. Brands in this sector can’t make the assumption that any business will grow from 2 to 3 percent a year on its own anymore,” said Antony Karabus, CEO of HRC Retail Advisory. “You have to figure out how e-commerce is cannibalizing your business, how Amazon is cannibalizing your business, and how to make money going forward. That’s absolutely critical.”
Read more at Glossy.