Italy’s fashion group OTB is planning to accelerate its project of creating an Italian luxury hub in the aftermath of the COVID-19 pandemic. In addition to acquiring fashion brands, the company aims to purchase firms in the production and distribution sectors. As part of its long-term plan, OTB recently acquired German label Jil Sander from Japanese retailer Onward Holdings, with the goal of building a portfolio of luxury brands. The company is confident in its resources and capital to move forward with this project.

The fashion and luxury industry experienced a significant decline in sales last year due to the pandemic, as forced store closures and travel bans severely impacted the sector. However, despite these challenges, there has been an increase in investment and M&A deals within the industry. Exor, an Italian holding company owned by the Agnelli family, acquired a 24% stake in shoemaker Louboutin, while luxury down jacket maker Moncler purchased Italian high-end brand Stone Island.

Despite the difficulties faced by the industry, OTB remains optimistic about its future prospects. CEO Ubaldo Minelli expressed confidence in the company’s business plan for 2023, which forecasts annual sales increases of 12% to 13% even without additional acquisitions. This growth is expected to be fueled by strong demand in Asia and the thriving online sales market.

The establishment of an Italian luxury hub by OTB signifies the company’s ambition to achieve a dominant position in the fashion and luxury sector. The CEO highlighted that this has always been a long-term goal for the company, and OTB founder Renzo Rosso is the only individual to have successfully accomplished such a feat.

In conclusion, despite the challenges posed by the pandemic, OTB remains determined to expand its presence in the luxury market and drive growth through strategic acquisitions and its existing portfolio of brands. With its financial strength and ambitious vision, OTB is poised to make significant contributions to the fashion and luxury industry in the years to come.

Useful links:
1. OTB Official Website
2. Italian Luxury Hub Official Website