YNAP Group'S Five Year "Great Leap Forward" Is In Progress.

Net-A-Porter finally leveraged Italy.

The Prada of the real world is skeptical of online sales.

It will soon touch the net since July 15th.

In view of this, the five year "great leap forward" of Net-A-Porter parent YNAP (YooxNet-a-Porter) group is in progress.

Since last year, Net-a-Porter and Yoox have become the world's largest luxury goods.

After the giant YNAP, their every move has always attracted much attention.

Not long ago, YNAP came up with an average annual revenue growth of 17%-20% of the five year plan, aiming to achieve a profit margin of 11%-13% in 2020.

If three years ago, the plan was not a bit odd.

With the decline in tourism and department stores, 17%-20%'s growth goal is ambitious.

After all, the growth of the luxury market predicted by Bain will only linger between 2%-3% in the next few years, and the "healthy" electricity supplier will increase by about 15%.

YNAP CEO FedericoMarchetti

"We have more confidence than the average growth rate of online luxury goods, because the mobile terminal."

FedericoMarchetti, chief executive of YNAP, said he stressed that the company is strengthening its mobile terminal investment to generate new consumption habits. "The turnover of smart phones has surpassed other devices in the past five years".

Before becoming a YNAP palmtop, FedericoMarchetti's identity was the founder of Yoox, a luxury electric business founded in Italy in 2000.

An important business of Yoox is regarded as a luxury brand developing electronic business platform, such as BottegaVeneta, SaintLaurentParis, Balenciaga and SergioRossi of Kai Yun group.

In contrast, the London based Net-a-Porter is featured by its content: hard shooting, fashion list, holiday strategy, beauty makeup, and page decoration.

After integrating into a family, YNAP obviously intends to continue to display its advantages in content.

Based on user data, Net-A-Porter and men's fashion business MrPorter will provide VIP customers with private "shopping guide" and attach recommendations.

Users in various countries will also get more localized content.

Following the entry of Chanel, Prada and other luxury brands into the electricity supplier, YNAP is trying to further expand its product lines, such as high-end jewelry and watches.

In addition to providing the platform, it has also begun to brew its own brand. MrPorter men's clothing and Iris&Ink of discount website TheOutnet have been placed high hopes, hoping to capture more market share.

Whether Yoox or Net-a-Porter is flowing in Europe.

But in terms of geographical distribution, North America, which is keen on online shopping, is currently the primary market for luxury electric providers.

YNAP's public figures at the end of last year showed that North American revenue accounted for 30% of the total, followed by Europe, Asia and the Middle East.

In this regard, it is not difficult to understand its decision to enter the Middle East market.

In April, YNAP announced the sale of a small stake to AlabbarEnterprises, a retail giant in the Middle East, in exchange for $100 million in cash (about 668 million yuan).

A deeper level of cooperation is at the strategic level: as a new shareholder, AlabbarEnterprises will provide guidance and support for YNAP to deepen the Middle East development.

The former holds franchise rights for luxury brands such as OscardelaRenta and RolandMouret in the Middle East and Southeast Asia.

EmaarPropertiesPJSC, the parent company, is the operator of several shopping malls in Dubai, including the world's largest shopping mall, Dubai Mall, which contributes 50% to the local luxury market.

Nevertheless, the ambition of YNAP still brought a doubt.

Bloomberg retailer columnist AndreaFelsted analysis said that although Yoox now contracts more than 40 luxury goods business, it is difficult to guarantee that one day it will be forced to hand over the agency.

Moreover, luxury goods on Yoox and Net-a-Porter platforms, after all, are expensive, and their growth targets are likely to be like a favorite product on the show. Although they can win the first round of applause, they have to struggle to find buyers.