Consumer Goods & Apparel
THE SUCCESS OF BRANDS IS BASED NOT ONLY ON WHAT THEY SELL. BUT ABOVE ALL, HOW.
The transformation of the consumer goods sector is in full swing
Established brands continue to consolidate, while young direct-to-consumer brands are able to address new customer groups and grow extremely quickly. Their success proves them right. Innovative media and sales approaches are accelerating change in the market. This is precisely why you need advisors at your side who help you model and analyze various scenarios as part of an M&A transaction.
An unbroken trend – and its impact on transactions
Online retail continues to grow despite the Covid ups and downs and is putting stationary business under pressure. Omni-channel approaches could be the silver bullet for both sides, but also pose a challenge: D2C brands look for stationary alternatives after saturation of online channels, classic brands often look for direct customer contact through a stronger online presence. Numerous transactions show that established groups have recognized their shortcomings – and are responding to it.
An increasing share of acquisitions of young companies by corporations can therefore still be expected. Even outside of online, the trends are: concentration via acquisition of competitors, focusing and digitization of corporate processes, and divestment of non-core activities. These are all processes that require consulting support.
Not only fashion is changing – but the entire fashion industry
In few other sectors change is as noticeable as in fashion: established brands are disappearing, brick-and-mortar retail is losing importance. Innovative direct-to-consumer brands are entering the market with social selling. You have to be able to understand and evaluate the opportunities and risks of this dynamic in order to prevent your own business model from suddenly being out of vogue.
What shapes the industry – and what we know all about
- New distribution models and omnichannel sales
- Cooperations of startups with SMEs and large corporations
- D2C brands
- Social commerce
True competence is always a combination of experience and vision
In the case of consumer goods companies, an understanding of market mechanisms, trends and suitable strategic combinations is often as important as the financials. In the fashion sector, we use our experience from the sale of several brands from the Triumph Group as well as direct-to-consumer companies to international buyers.
But also in food, cosmetics and digital products we were able to bring together the right partners and implement successful transactions. In each new project, we start again with a detailed analysis of the company and its market environment in order to repeat these successes.