Yoox and Net–a–Porter agree in all share merger deal
Say hello to the Yoox Net-a-Porter Group, the latest luxury merger agreed by Net-a-Porter owner, Richemont SA and their Italian rival, Yoox SpA, due to be traded on the Italian stock exchange.
The deal has emerged after the high-end online retailer reported a $14.8 million loss in 2014, occurring as a result of a continuous struggle to sustain profitability since passing control over to Richemont in 2010. The merger therefore hopes to establish a greater online presence in luxury retail – a global issue that carries concern for many designer brands. With the companies combined, they are expected to turn over revenue of $1.4 billion through the executive’s collective expertise in the ever-saturating market.
Johann Rupert, chairman of Richemont, said: “We are proud of Net-a-Porter’s achievements under the leadership of Natalie Massenet, ably assisted by a wonderful team of professionals. Established business models are being increasingly disrupted by the technological giants. It is with this in mind that we believe it is important to increase leadership and size to protect the uniqueness of the luxury industry. The merger of the two leaders will further enhance an independent, neutral platform for a sophisticated clientele looking for luxury brands.”
Natalie Massenet, founder and executive chairman of Net-a-Porter takes pride in the website’s unique notion that it is arranged like a glossy magazine. She feels “It’s just as much of a magazine as it is a store. That really has served us well, because when you’re online you lose the offline experience of walking into a store”. Contrary to this concept, yet still a trader of high-end goods, Yoox offer out of season clothing, often at discounted prices.
Massenet said: “Today, we open the doors to the world’s biggest luxury fashion store. It is a store that never closes, a store without geographical borders, a store that connects with, inspires, serves and offers millions of style-conscious global consumers access to the finest designer labels in fashion. A store that provides established and emerging brands with the greatest interactive shop window to the world. Together, with our world-class teams in technology, logistics, content and commerce we are redefining the fashion media and retail landscape. The best way to predict the future of fashion is to create it.”
Emily Harris
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