A limited offering and excessively high prices. These are two of the causes for the tough juncture the luxury sector is experiencing, according to Marco Bizzarri, ex-CEO of Gucci and co-founder of advisory firm Forel, one of the firms consulting for Faro Alternative Investments (FAI), an alternative investment umbrella fund.

“It’s a supply-side issue more than a demand one, in the sense that the offering by luxury labels is so flat that people are reluctant to buy, also because of the price increases,” said Bizzarri, interviewed at FAI’s market presentation. “Because of this, there is room for investment in the sector. Market gaps have opened up and, if a brand has the right narrative and is well-positioned, I think the ideal space is there,” he added.