How to achieve the perfect alliance between the fashion industry and luxury and finance? How can investment funds enhance brands without losing their identity and creativity? These are some of the questions that have been answered by the participants in the Milan Fashion Global Summit, held on November 23 in Milan.
The entry of a financial partner in the capital of a luxury brand can be a real accelerator of growth, but sometimes it can result in negative dynamics, for example if the company lets itself go to unwanted and too rapid investments if related to his abilities.
"It is undeniable that, if well managed, the entry into the capital of an investment fund or the listing on the Stock Exchange are synonyms of great added value for fashion companies. Just see the amazing successes recorded by Moncler, Valentino or even Golden Goose in recent years, companies that have doubled, if not tripled their turnover, with increases in double-digit margins, "said Emanuela Pettenò, Partner PwC . "This type of operation has allowed these companies to accelerate their international expansion, strengthen the retail network, expand the range of products and implement appropriate communication strategies".
"We must be careful not to run too much," said Roberta Benaglia, founder and CEO of Style Capital sgr, who successfully accompanied in their first phase of growth brands like Twinset and Golden Goose. "In the first years of expansion, SMEs have many challenges to face. A quotation on the Stock Exchange that is too premature risks paralyzing them a bit, especially if they are not used to communicating with the world of finance ".
For their part, investment funds can not face the world of fashion and luxury like all other sectors. "The funds have a unique model, which they tend to apply to everyone. But fashion is different, it's a world apart. To enter this business, it is preferable to already have skills in this field ", commented Andrea Morante, Chairman of QuattroR sgr, a management company promoted by Cassa Depositi e Prestiti. "It is not a generalist market".
"In the moment in which we enter these small realities of the made in Italy, more often than not we are faced with a family management, with the father to the Management, the mother to the Administration, the brother to the Commercial, etc. We must first understand the balance within these family businesses, manage relationships with people and create an organization around this core group. It is a complex alchemy ", summed up Roberta Benaglia, who also recalled that:" Investing in luxury can be very interesting and generate excellent returns, but if the investment is badly managed it is also possible to obtain big flops ".
The success is therefore conditioned by the way the funds manage to integrate a new, more managerial organization within the company, without ruining its momentum, as pointed out by Andrea Ottaviano, L Catterton's Managing Partner Europe. "The most difficult thing is to keep the imagination of the company and the entrepreneur, while making it more managerial".
In this context, the human factor is decisive. "The investor must have the ability to choose the right people, that is, managers who also know how to be entrepreneurs, able to gain the confidence of the founder and his support, in order to transmit the company's values and savoir-faire" , Ottaviano continued.
"To get this confidence, we start working with entrepreneurs right away, sometimes even two years before concluding the operation," confirmed Roberta Benaglia. "We make ourselves known and, little by little, appreciate, giving advice and help. It is a long-term approach ".
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