Valentino And YNAP Join Hands To Create A New Full Channel Business Model "New Era"

According to the world clothing shoes and hats net, Italy tradition and Chaoyang

The giants of the industry, Valentino Fashion Group SpA Valentino and Yoox Net-a-porter Group SpA (YNAP.MI), announced strong cooperation to create a new all channel business model "New Era", which opened the world's largest market in early 2018.

Brand stores, online.

The luxury group is accelerating the embrace of e-commerce as the traditional luxury goods industry has entered the new normal of a single digit growth.

The novelty of Valentino Fashion Group SpA cooperation between Valentino and YNAP is that at the present YNAP website for the former operation, Valentino Valentino is set up in all boutiques, warehouses and all over the world.

Site integration with Net-a-porter and Mr Porter two platforms, combined with YNAP logistics advantages in 8 regional distribution centers in Dubai, Shanghai, Hongkong and Milan.

YNAP chief executive Federico Marchetti pointed out that this means that no matter what customers want to do online shopping, picking up goods at stores, or sending goods to other locations, they can achieve them and offer them endless choices.

When Valentino Fashion Group SpA Valentino CEO Stefano Sassi accepts WWD access, it says that it is not feasible to manage customers' needs through phone calls between stores. Future customers will browse to all products in valentino.com and buy them. Federico Marchetti adds, "you will never go into stores but can't find anything you want to buy."

YNAP will use IBM's order management system to provide more fluent checkout process, complete product information and online inventory for customers' online shopping. Once the order is formed, IBM's system will automatically select the most suitable store or distribution center, so the express service will also speed up.

Valentino Fashion Group SpA Valentino can view inventory status through this system, and get important customer data.

This is exactly the opposite of the traditional luxury industry's strategy of maintaining rarity, specificity and brand image.

Customers will not abandon the noble service experience provided by luxury brands in the face of the quick benefits of selecting and receiving goods. It is not a problem for young consumers who are accustomed to the enormous convenience brought by e-commerce, but can attract new customers. Therefore, this mode conforms to the present industry status of luxury goods production and luxury goods group pursuing high growth and thick profits, and will also become a template for the future development of luxury e-business.

Stefano Sassi emphasizes that it is very important to establish an online flagship store in the field of electronic commerce, because even if there are cooperative relationships with multiple online retailers, flagship stores must "be their own, customers must visit our website" to form a "reference point" and even a "reference point" for the whole (luxury) network.

He quipped that other luxury brands are catching up.

Valentino Valentino brand website

For YNAP, strengthening cooperation with Valentino Fashion Group SpA Valentino will also consolidate its leading position in the field of luxury electronics.

Last week, Matchesfashion.com, which evolved from boutique buyer's shop to luxury electric business, announced its first performance. The annual revenue recorded a strong growth of 61%, earning 204 million pounds, and core profit EBITDA increased by 4.5 times, from 3 million 400 thousand to 19 million pounds.

According to the data, the fiscal revenue of YNAP 2016, including Net-a-Porter, Mr Porter, TheOutnet and yoox.com, reached 1 billion 900 million euros, but the annual growth rate was only 12.4%, and net profit fell by 37% to 34 million euros.

The group's revenue for the Armani, Chloe, Moncler, Kering SA (KER.PA) brands and Valentino Valentino's online flagship store is 205 million 300 thousand euros, accounting for 11% of group revenue, up 17.1% over the same period last year.

Valentino Valentino brand entered the Net-a-porter in 2006, opened e-commerce in 2008 with the support of Yoox SpA. In 2015, Yoox SpA and Net-a-porter merged into Yoox Net-a-porter Group SpA.

Federico Marchetti revealed that valentino.com is one of the best performing brands in the online flagship store business. It has been growing all along, including 2016, but neither side has disclosed the specific data of Valentino Fashion Group SpA Valentino online business.

Next, the website will be upgraded. It will not only bring new features on line, but also introduce new functions promoted by AI.

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According to Goldman Sachs Group Inc. (NYSE:GS) Goldman Sachs Research Report, luxury online sales will grow at an annual rate of 15% before 2020, while the overall growth rate of luxury goods industry will only be 1%-4%.

To be sure, the cooperation mode between YNAP and Valentino Fashion Group SpA Valentino will be extended to other brand customers of the e-commerce group. Stefano Sassi disagrees, because they have established the relative advantage of "drinking the soup".

Federico Marchetti confirms that the group is consulting with other luxury brands on this mode of cooperation.

Kering SA Kai Yun group is also likely to taste.

At the same time, the industry is widely rumored that the world's largest luxury group LVMH Mo t Hennessy Louis Vuitton SE (LVMH.PA) road Wilson group will also launch an e-commerce platform this year, which will cover not only the brand of the group, but also other non LVMH brands, covering a wide range of luxury brands, directly competing with luxury e-business such as Net-a-Porter, Matchesfashion.com and raven.

According to the world clothing and shoe net, LVMH SE's e-commerce platform will operate in the name of one of the group's multi brand retail concepts, Paris Le Bon March E department store. It will be operated in April or May this year, and will be launched in July.

According to WWD's report in January this year, the project was called "Project Babylone" in the group. It was led by the group chief digital officer Ian Rogers, Le Bon March E department store and excellent e-commerce Sephora team. It also participated in the team. Last year, the acquisition paction of LVMH's advanced suitcase brand in Japan was gradually beginning to enter the public eye. (also, the chairman of the company and chairman of the company, the son of 24 year old), made a contribution.

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