- Italian Design Brands is seeking acquisitions and planning an IPO in 2023.
- Ultra-expensive brands continue to thrive despite the economic crisis.
- Strategies of exclusivity, scarcity, aspirational marketing, and focus on the Asian market are key to the growth of ultra-expensive brands.
The luxury housewares holding company called Italian Design Brandswhose sofas sell for more than $50,000, is looking for new potential acquisitions with the idea of reaching a planned IPO in mid-2023 in the best possible way.
Italian Design Brands expects demand for ultra-expensive furniture to rise further, despite the high selling prices of most of its products.
The company, which is backed by private capital, has in its portfolio luxury sofa manufacturers Meridiani and Gervasoni, the lighting brand Davide Groppi and Cubo Design luxury kitchens.
The decision to go public has already been made and it will be done even if market conditions are not the best.
Are $50,000 sofas in demand? Of course
Counterintuitive as it may seem, in times of economic uncertainty and financial hardship, one industry has managed to defy the odds and thrive like never before: the market for ultra-expensive brands.
Despite the global crisis, sales of ultra-expensive brands have continued to rise, leaving many amazed by the phenomenon.
While the rest of retail struggles to adapt to changing consumer behaviors and a volatile economy, luxury brands have found a way to maintain their sales momentum.
As? The main reason: inequality in the world continues to grow (even more in times of crisis), which means that there is a market for this class of products because the demand continues to be sustained.
Another major reason behind the growth of ultra-expensive brands your unique sales strategies. These brands have long relied on exclusivity, scarcity, and aspirational marketing to create a sense of desire among consumers.
By positioning their products as a status symbol, luxury brands tap into the emotional and psychological needs of consumers, creating a sense of “must have” among their target audience.
And one more fact: with funds to do it, the ultra-expensive brands they have embraced digital transformation and e-commerce to reach a wider audience.
With the rise of online shopping and social media, they have taken advantage of these platforms to connect with consumers and create a seamless online shopping experience.
And a key detail: its focus on the Asian market, particularly China. China has become one of the main driving forces behind the growth of luxury brands, with a growing middle class.
Italian Design Brands sale a bolsa
Going back to Italian Design Brands, according to Financial Timesalthough the price range of the IPO and the volume of capital exposed are not agreed with the investors, The idea is to place at least 25% of its share capital by selling current shares and issuing new ones for a value of about 80 million dollars.
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