Italy Trade Bureau To Cooperate With E-Commerce Platform Yoox To Develop Online Business

For a long time after Farfetch acquired Jingdong investment, the former maintained strong growth momentum and the only one that could compete with it.

Electric giant

Net-a-Porter's leading position is no longer obvious. In the face of competition pressure, Yoox Net-a-Porter's response is somewhat slow.

According to the world clothing shoes and hats net, recently, the Italy Trade Bureau (ICE) announced its luxury with Italy.

Platform Yoox has reached a year of cooperation, hoping to help develop 100 small and medium-sized Italy brand online businesses through the platform of Yoox. These 100 brands are mostly fashion accessories and art design brands that have entered the US or Chinese market.

Yoox and the Italy government's cooperation plan will include a new e-commerce platform specially developed for these new brands -- "Italian Hidden Gems (Italy hidden gem)", which will be launched in the middle of 2018 and is subordinate to Yoox Net-a-porter group.

Michele Scannavini, President of the Trade Bureau, said the idea of cooperation stems from two considerations: on the one hand, the aim of the trade bureau is to help SMEs to globalized and attract overseas investment in the process.

For small and medium-sized brands, channel support is very important. They need to be able to reach important retailers to enhance their resources and visibility.

"This is not just the product and brand word of mouth can do, more cases are determined by the channel."

Scannavini says.

The government's investment in the platform will reach 3 million euros per year. From the date of release, the funds will be allocated equally to the four quarters of the US and China markets for communication and online offline activities, which will lead to a substantial increase in traffic volume.

The fashion industry has always been the gene and pillar industry of Italy. Only after the European economy suffered heavy losses, most of the fashion brands in Italy failed. Fortunately, since 2017, the Italy Trade Bureau's investment in the fashion industry fund has increased by 45%. The Yoox project is also a new form of the first attempt of the Italy government. Scannavini said it is likely to become a rudiment model for more similar investments in the future. It also revealed that the trade bureau is consulting with the Alibaba, hoping to cooperate in promoting 140 food and wine brands.

Compared with China, the electricity and commercial digitalization level of European countries is far behind.

It is reported that Italy can only accept 10% of the total number of online orders, which is 21% and 27% respectively in France and Germany, which is exactly the opposite of China's already overwhelming business scenario.

Scannavini also realizes that since the Trade Bureau strengthened its online business over the past year, it has underestimated the complexity of the online world.

This is another reason for this cooperation: "outside the channel, traffic and exposure require a lot of investment.

We should not only enter the Chinese market, but also more importantly, increase the exposure rate, so that the products can really be sold out.

So Scannavini believes that a partner who has experience in the local market can play a role in polymerization. "We do not risk building our own platform, but we are building a platform for the brand and the right cooperation platform."

Scannavini said.

Yoox has established business in more than 100 countries. The US and Chinese markets occupy the vast majority of the business share, and in 2003 and 2010, two branches were established.

Since the mid 2015, 90% of Italy's Trade Bureau's brand marketing campaigns have landed in American stores, with more than 3000 companies and 800 new partners. These activities have increased revenue by 250 million euros. Seeing the good results on line promotion, Scannavini naturally wants to do the same thing online. "That's why we need a partner with global coverage, and have a strong organizational structure in the US and Chinese markets."

It can be seen that Yoox hopes to win more share in the US and Chinese market where the electricity supplier consciousness has been popularized. When the electricity supplier is crowding to grab the luxury brand resources, Yoox uses a small brand to find another way.

Alessandra Rossi, chairman of Off-Season Yoox and The Outnet, also explains the complexity of converting brand online business to actual sales.

Just being online is not enough. If consumers do not understand your brand and products, it will be like putting the store into a dead end.

Therefore, in understanding consumers, marketing activities and social media are all necessary means of publicity.

Rossi said that this project is consistent with Yoox's long term brand incubation strategy. In order to develop specific new brands, Yoox has a dedicated team responsible for brand story design and product editing.

It is reported that the seasonal products of this brand will only be visible in the US and China, and then enter the outlets of the whole website after the season.

On the upcoming "Italian Hidden Gems" website, 100 brands will be divided into six categories, including 40% fashion, 25% shoes, 23% bag accessories, 6% non jewellery, and 6% household accessories.

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