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Various engagements in the broad luxury and lifestyle industry demonstrate maconda\u2019s strong sector expertise. For example, we supported the acquisition of a leading specialised watch manufacturer from the Swiss Jura. The company designs and produces watches for traditional watch brands, jewellers and retail chains. <\/p>\n\n
In the Commercial Due Diligence, we comprehensively examined global demand for Swiss watches, its key drivers, and developments across the various price and quality segments. An important module of the analysis addressed the fragile supply chain \u2013 above all, security of supply for mechanical movements and oscillating systems \u2013 against the backdrop of the widely known supply bottleneck on the part of the leading manufacturer, in conjunction with the so-called Swissness initiative of Swiss associations. In addition, we analysed customers\u2019 procurement behaviour and estimated the potential for new business. <\/p>\n\n
The luxury market continues to grow. Rising living standards in so-called emerging markets, increased brand and image awareness combined with the trend towards “affordable” luxury, the growing number of HNWIs (High Net Worth Individuals) and mass affluents \u2013 drivers like these fuel growth, but also create risks. The biggest challenge for luxury brands is to increase reach while maintaining brand and product exclusivity. Exclusivity and expansion must be aligned, based on a balanced strategy, so that growth does not come at the expense of the brand \u2013 the most important asset of a luxury goods manufacturer or retailer. <\/p>\n\n
Luxury providers in particular require a well-considered approach to target audiences and a product, licensing and service portfolio that reflects the brand\u2019s core. In addition, there is virtually a necessity to offer the same product and service quality across a cross-border, often global distribution network \u2013 few industries are as highly internationalised as luxury goods. Many providers also increasingly view horizontal and vertical integration as well as diversification into adjacent luxury segments as an approach to realising growth potential. <\/p>\n\n
This can sometimes increase complexity immensely. And ultimately, a crisis does not stop at luxury goods either, even if downturns are usually less pronounced. A provider of products in the luxury and lifestyle segment \u2013 whether manufacturer, retailer or service provider \u2013 would be well advised to position itself robustly in good time: when business is going well, not only when pressure starts to build. <\/p>\n\n