Luxury Groups Began To Embrace E-Commerce Channels. It Seems That Li Feng Regretted Buying YNAP.

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The group began to embrace e-commerce channels.

It seems that the luxury goods group, which is detrimental to the uniqueness of luxury brands, seems to regret it.

According to the world clothing shoes and hats net, Cartire's parent company, peak group and Italy luxury.

Yoox Net-a-Porter of e-commerce group has reached an agreement that it will purchase all the remaining shares of Yoox Net-a-Porter at a price of 38 euros per share, which is 23.4% higher than the current share price and the total paction volume is about 2 billion 800 million euros.

According to the agreement, after the completion of the paction, the Yoox Net-a-Porter shares of the group will be increased from 49% to 90%, and Yoox Net-a-Porter will be delisted from the Milan stock exchange.

Johann Rupert, chairman of the group, said the move is aimed at further strengthening the group's leading position in the luxury fashion business, and Yoox Net-a-Porter will continue to operate independently by the existing team.

Up to now, neither Yoox nor Net-a-Porter has responded to the news.

The peak group was founded in 1988 by the South African billionaire Anton Rupert. It was listed on the Swiss stock exchange in 1995. It owns Cartire, Van Cleef & Arpels, count, Vacheron Constantin, Lang Ge, Jaeger-LeCoultre, pan Na Hai, IWC, MontBlanc, Dunhill, Lancel, Chlo and so on. It is the third largest luxury group after LVMH and Kai Yun group.

Net-a-Porter was founded in 2000 by British Fashion Editor Natalie Massenet, inspired by the work experience of its fashion magazine editor.

Unlike other electronic platform selling products simply, Net-a-Porter will launch an electronic magazine consisting of fashion blockbusters every week, attracting many young consumers and stimulating it to grow rapidly to become one of the most successful luxury electronic business platforms in the world.

In 2010, Net-a-Porter was bought by the whole group and valued at about 350 million pounds.

Natalie Massenet's inspiration for the creation of an e-commerce website directly comes from its work experience in fashion magazines. She clearly puts forward the magazine's presentation of e-commerce.

Yoox, like Net-a-Porter, was founded in 2000. It was once regarded as the "Amazon of the fashion industry". Its founder was Federico Marchetti. In 2015, it bought Net-a-Porter from the peak group. Although the specific paction amount has not been disclosed, some analysts expect that the group will earn about 317 million euros from the merger of Yoox.

Because of the differences in business philosophy, Natalie Massenet decided to leave the company one month before the merger of the two companies. In accordance with the agreement, she managed to cash in 140 million euros.

In October 5th of the same year, the combined Yoox Net-a-Porter was listed on the Milan stock exchange, and its share price rose 6.7%, and its market value reached 3 billion 700 million euros.

Under the management of Federico Marchetti, Yoox Net-a-Porter began to lay emphasis on the luxury market in recent years.

In April last year, the group launched the 2018 Next Era program with the luxury brand Valentino of Italy, aiming to enable the brand to categorize online products freely, while further strengthening logistics services and creating more brand specific shopping experiences for consumers.

Driven by strong performance in the Greater China region, sales of Yoox Net-a-Porter Asia Pacific region surged nearly 18% last year.

In July of that year, Yoox Net-a-Porter signed a four year global agreement with Ferrari S.p.A., which will be responsible for the establishment and management of the new online flagship store for Ferrari. It is scheduled to be launched in the first quarter of 2018.

At the same time, the group's core businesses, Net-a-Porter and Mr Porter, continue to cooperate with luxury brands.

Following the launch of the Porter x Gucci series last year, Balenciaga will also release two exclusive capsules on Net-a-Porter and Mr Porter tomorrow.

Thanks to the correct market strategy of Yoox Net-a-Porter, group performance began to accelerate.

In the 2017 fiscal year ending December 31st, Yoox Net-a-Porter sales rose 11.8% to 2 billion 100 million euros, the first time to break through 2 billion euros, the organic growth rate was 16.9%.

Group's fourth quarter revenue grew 6.9% to 575 million euros.

Federico Marchetti said that last year, the group's total website visits amounted to 842 million times, and the sales of mobile terminals exceeded 50% of revenue for the first time.

It is noteworthy that after three years, the Net-a-Porter has no control over its holding power.

With the popularity of smart phones and social media, luxury consumers are gradually shifting to the online market, and the field of e-commerce is becoming an increasingly important market for luxury brands.

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According to German media statistics, the total sales volume of the global luxury goods industry increased by 5% to 1 trillion and 200 billion euros last year, a record of the past, of which 1/3 came from the electricity supplier channel.

Among them, LVMH is the largest luxury group in the world.

In June 6th last year, LVMH group launched a multi brand e-commerce platform 24Sevres formally launched on a two-year basis. Not only did it sell the brand products of the group, but also the competitive brands such as Gucci and Prada, directly to the standard Net-a-Porter.

In addition, LVMH group's most conservative luxury brand C e line officially launched online shopping service in France last December 5th.

At the same time, LVMH group rival Kai Yun group also began to accelerate the layout of the luxury electric business market. The core brand Gucci and Saint Laurent launched the online shopping service in China's market respectively last year, respectively, in China's official website and the third party luxury business platform Jingdong Toplife.

In the Chinese market, the competition for luxury goods continues to be fierce. Not only Tmall, Jingdong, vip.com and other three giants have been competing for luxury brand resources, WeChat has officially opened the electricity supplier channel this year.

It is noteworthy that after Jingdong invested $400 million in Farfetch, there was news that Alibaba would cooperate with Yoox Net-a-Porter and did not rule out takeover actions.

Last year, the group began recruiting and planning to follow the example of LVMH.

However, because of its brand business, mainly based on jewellery, watches and other hard luxury goods, its price is generally high. It is not easy to build an e-commerce platform like LVMH group.

Therefore, the repurchase of Yoox Net-a-Porter is clearly the fastest way for the group to recapture its share in the field of luxury electronics.

In addition, as Yoox Net-a-Porter's performance is in a period of high growth, the group decided to buy back this would help stimulate its revenue growth.

According to fashion headline data, in the third quarter of December 31st, the group's sales increased by 7% to 3 billion 120 million euros on a fixed exchange rate, up 1% from real exchange rates.

However, the behavior of the group has triggered controversy.

Vanessa Friedman, a fashion critic, thinks in social media that after breaking up the Net-a-Porter 50% share to the Yoox group three years ago, the group said its aim was to protect the uniqueness of its luxury brands. Now it sees the rise of luxury electric business and repurchase huge sums of money, which means the strategic mistakes of the year.

After the release of the news, the group's share price fell 1.2% to 89 Swiss francs per share, while Yoox Net-a-Porter jumped 24.4% to 37.62 euros per share, with a current market value of about 3 billion 430 million euros.

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