As the fashion and retail landscape continues to evolve at warp speed, “old guard” vendors and newer digitally native e-commerce companies are rapidly converging at an M&A intersection of mutual need. While online players offer the right combination of technology, data-driven consumer insights and social engagement as well as aesthetics, established, traditionally rooted firms bring operational excellence, product development and sourcing capabilities, in addition to sorely needed working capital.
Veteran brands and labels would be wise to find a next-gen partner to intelligently enter the digital fray as it is often cheaper to buy it than to build it.