Yoox Joined The Scramble For Luxury Electric Business Net-A-Porter

Net-A-Porter, the world's largest luxury goods supplier, has become an object for buyers to compete for. Following rumors of Amazon's intention to buy it last week, Italy luxury electric supplier Yoox announced in March 30th that it is consulting with Net-A-Porter on possible future business combinations.

Unlike in the past, when the takeover was launched, "no comment" was made. Net-A-Porter's parent company, the peak group, confirmed it this time. The Reuters is quoted by people familiar with the matter as saying that the single deal is likely to be finalized and published this week.

In 2010, the world's second largest luxury group came to Net-A-Porter with a total of 350 million pounds (about 3 billion 225 million yuan), while analysts estimated that it could now reach 1 billion 500 million pounds (about 13 billion 800 million yuan).

As early as 2013, there were rumors about the merger of Yoox and Net-A-Porter in the industry, but Yoox founder, chief executive Federico Marchettih and Li Feng group both denied it. Last November, Gary Saage, the group's chief financial officer, also publicly stated that Net-A-Porter was "not for sale".

The scale of Yoox is smaller than that of Net-A-Porter. The luxury business operator, founded in Italy in 2000, has a revenue of 524 million 300 thousand euros (3 billion 530 million yuan) in 2013, less than Net-a-Porter's 532 million pounds (about 4 billion 903 million yuan). The name of Yoox is quite interesting. "Y" and "X" represent men and women respectively, while the two letter "OO" represents infinite symbols in mathematics.

These two Online retailers It is not yet clear which form to join. Yoox In the statement, there will be no further information at this stage. But coincidentally, they were born in the same age as in 2000. In addition, the valuation of Yoox is also very close to Net-A-Porter: 1 billion 320 million euros (about 12 billion 120 million yuan). Another advantage that it admired is that the founder Federico Marchettih has led the company to complete its listing in Milan in 2009. In addition to capital injection, Yoox also used this way to enhance brand image and exposure.

Today, Yoox orders are pouring in every 11 seconds. Background of e-commerce 。 Another important business of Yoox is to develop an e-commerce platform for luxury brands. For example, the luxury giant Open Cloud group manages the online stores of its many brands, including Bottega Veneta, Saint Laurent Paris, Balenciaga and Sergio Rossi.

Despite being one of the biggest sellers of luxury goods, Net-A-Porter has had to build up distribution centers around the world in order to expand, so it has to work hard to increase sales. This is also a major reason why the outside world has speculated on the Net-A-Porter division.

The same insider told Reuters that in recent weeks, the Swiss luxury group has rejected the offer of informal takeover by at least four companies. Other sources also said that they did not want to sell Net-A-Porter for cash, but rather to strategic partners like Yoox.

In the eyes of Net-A-Porter, Yoox has first-class skills in digital sales of luxury goods. At the same time, if the spanaction is successful, Yoox will provide funds for Net-A-Porter to make it go further, and it can avoid positive cash pressure. In its balance sheet, the cash flow exceeds 4 billion euros (about 26 billion 920 million yuan).