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    YNAP Builds New Retail Online Platform With Middle East Enterprises

    2017/1/3 16:26:00 67

    LuxuryFashionYNAP

    In China and Russia Luxury goods When the market continues to decline, the Middle East becomes fashion The next hot spot in the industry.

    In early December 2016, the luxury electric giant Yoox Net-a-Porter group (YNAP) announced the establishment of a joint venture with the Mohamed Alabbar Symphony Investments company in the Middle East to establish a new luxury retail online platform for the Middle East. YNAP The group will hold 60% of the joint venture company, while Symphony Investments will own the remaining 40% shares. The joint venture will be headquartered in Dubai and will manage Net-a-Porter, MrPorter, Yoox, TheOutnet and other fashion e-commerce websites in 2018 and 2019.

    In addition to cooperation with YNAP, Mohamed Alabbar also invested $1 billion in Saudi Arabia's sovereign wealth fund and launched an e-commerce website Noon to create "Amazon" and "Alibaba" in the Middle East. E-commerce in the Middle East is on the rise.

    The strong purchasing power of the Middle East tycoons is certainly the reason for attracting YNAP to enter. The constantly open fashion environment in this area is more important for long-term development. With the influence of Dubai Fashion Festival and Dubai fashion week gradually expanding, on the one hand, Dubai has strengthened the image of the global fashion capital. On the other hand, it has constantly excavated the local design power in the Middle East.

    In September 2016, Vogue launched the Arabia version. Although Vogue Arabia is not the first international fashion magazine to be stationed in the Middle East, the Arabia Princess Deena Aljuhani Abdulaziz is the editor in chief, which means more possibilities for the future development of the Middle East.

    Imagination from "baby" to "magnate"

    In 2015, Italy luxury electric business YOOX merged with the Net-a-Porter of its group to become YNAP group. In April 2016, Alabbar Enterprises, a Middle East retail giant, bought a $one hundred million stake in the YNAP group. So the news of the establishment of a joint venture at the end of the year is not surprising.

    YNAP CEO Federico Marchetti disagrees with the decline in the luxury industry. He told the Daily Telegraph of the UK: "luxury online consumption has maintained a 15% growth rate, while 80% in the Middle East are shopping with mobile phones."

    For the establishment of a joint venture, Federico Marchetti said: "local partners are very necessary. The joint venture can ensure that the delivery service delivered on the same day in Dubai will also launch a local language Arabia website.

    According to the world clothing and shoe net, LucaSolca, head of Paris banking luxury department, said the joint venture would be a blueprint for YNAP group to go deeper into some markets. "YNAP has certain global ambitions, but it lacks the ability to acquire resources in every independent market. A joint venture like this can portray a blueprint for YNAP to go deeper into those markets so that its business models can be brought into play and get more attention.

    "This is consistent with Richemont's idea of holding shares in YNAP, which will enable more strategic partners to join. In this way, the regional advantages of Alabbar's Symphony/Eimaar and the physical retail platform can give YNAP additional impetus to enter the strategic market such as the Middle East.

    According to the world clothing and shoe net, the luxury electric business platform currently covers member states of the Gulf Cooperation Council, including Arabia, the United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Bahrain and Oman, and is likely to expand in the future. At the same time, the headquarters will be located in Dubai and establish logistics centers locally, providing unique services to Middle East customers and supporting payment in local currency.

    Of course, this is not done overnight. YNAP's office and logistics centre in Dubai will be opened by the end of 2017. The group's Yoox and The Outlet will be launched in 2018, and Net-a-Porter, MrPorter and online flagship stores will be followed by 2019. YNAP group has set an ambitious five year plan for itself. Besides the above layout, it also includes sales growth of 17% to 20% per year before 2020.

    According to the world clothing and shoe net, 3% of the global luxury consumption comes from the Middle East. The consumption growth rate in this region is 10%, which is 5 times that of the global market. "By 2020, the luxury market in the Middle East is expected to reach US $12 billion, and the proportion of high net worth people in this region is the highest in the world." Federico Marchetti indicates. In the Middle East, as a market with strong potential for development and high consumption of luxury goods, the joint venture will make a great contribution to the realization of the goal of YNAP.

    Mohamed Alabbar, the big money maker of the joint venture luxury business platform, is the chairman of Emaar Properties, a London listed company, and owns the world's tallest building, Harry tower and Dubai Mall. Alabbar is confident of developing luxury electronics business in the Middle East: "e-commerce is still something new for the Middle East, accounting for only 1.5% of the retail industry, but still in infancy. But the growth of Emaar to the scale of today is also from scratch. We have to make Emaar in the next electricity supplier field.

    {page_break} The princess has a bright future in fashion.

    In fact, the fashion giants are much more popular in the Middle East than the luxury group. In 2013, "Karl Lagerfeld", together with the Italy edition Vogue editor in chief Franca Sozzani, helped to launch the "Dubai modern fashion festival". The financial support behind this activity is still the imal real estate group. So far, it has held three sessions, attracting dozens of first-line brand display clothing series including Valentino, Chanel and Dior. Among them, the "looking for the future Dubai new star" design competition is a great support for the local design strength.

    Elle, Marie Claire, Harper 's Bazaar have already entered the Middle East market, and the international fashion magazine, which lingered outside the door, has finally chosen to launch the Arabia version in Vogue2016 year.

    In September 2016, Vogue Cond, Kangtai, and Nervora, an electronic media and advertising agency in the Middle East, agreed to issue an English and Arabia bilingual magazine version on the website and issue a paper version next spring, and the Deena Aljuhani Abdulaziz of Saudi Arabia became the editor in chief of the Vogue.

    Deena1998 married in the royal family, worked in the luxury retail industry, co founded the Riyadh fashion concept store D 'NA, and became a fashion buyer. "There are 250 million women in the Arabia world. The Arabia world has ties to each other, but there are many different regions, and I understand the specific factors at these cultural levels. Nudity and religious symbols are inappropriate. This is common sense. In an interview with the financial times, the publishers also announced that they would avoid naked, religious symbols and discuss sexual orientation with gay designers.

    According to the world clothing and shoe net, less than ten years ago, Jonathan Newhouse, chairman and chief executive of Nash, Kangtai, had cancelled the decision to launch the Middle East version of Vogue because the region refused to accept Western values such as freedom of speech, equality of women's rights and sexual expression.

    JonathanNewhouse now says: "interest in high fashion brands and products has grown significantly over the past 10 years. This is what we heard from advertisers of Nash International Group, Kangtai. It also points out that the region has successfully organized international fashion events and opened more and more luxury shopping shops, such as Dubai Mall, Rubaiyat Department Store in Riyadh, and Place VendomeQatar, Qatar, Qatar, Abdul Aki and Azee Laban, which will open in 2017.

    According to the world clothing shoes and hats net, the MENA (Middle East North Africa, Middle East and South Africa) area's personal luxury consumption market scale is estimated at US $9 billion. Under the background of the slowdown of China and Russia, the Middle East market is very attractive to advertisers. "Vogue Arabia will make a strong noise. I hope that even women in the Arabia area would want to own this magazine. Deena says.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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