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YOOX Net-a-Porter Group

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YOOX Net-a-Porter Group S.p.A.
Company typeSocietà per Azioni
IndustryFashion and leisure
Founded5 October 2015; 9 years ago (2015-10-05)
FounderNatalie Massenet
Federico Marchetti
Headquarters
Milan
,
Italy
Area served
Worldwide
Key people
Alison Loehnis
ProductsFashion products
BrandsNet-A-Porter
Mr. Porter
YOOX
THE OUTNET
Revenue€1.82 billion (2016)[1]
Number of employees
4,700+[2] (2018)
ParentRichemont
SubsidiariesUnited Kingdom, United States, Japan, France, Spain, China, and Hong Kong
Websitewww.ynap.com

YOOX Net-a-Porter Group S.p.A. is an Italian online fashion retailer created on 5 October 2015 after the merger between Yoox Group and Net-a-porter Group (NAP).

Yoox was originally founded by Federico Marchetti in Milan in 2000, and Net-a-Porter was founded by Natalie Massenet in London in 2000. Beginning in 2003, Richemont invested in NAP. In 2015, Yoox purchased NAP shares from Richemont and merged with Net-a-Porter to establish the Yoox Net-a-Porter Group. In May 2018, Richemont acquired the YNAP Group by purchasing 95% of the company's available shares.[3] The combined company has become a global e-commerce player that serves more than 180 countries.[4][5] YNAP posted a €1.46 billion loss in 2023, and in October 2024 Richemont agreed to sell Yoox Net-A-Porter to Mytheresa.[6]

History

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Net-a-Porter Group

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Net-a-Porter founder Natalie Massenet is an American-born former fashion journalist with Women's Wear Daily and Tatler.[7] She developed the concept of a magazine in website format where users could 'click' to buy while trying to source product online for a fashion shoot.[8] Having raised the £1.2m (approx $2m) start-up costs with the assistance of her then-husband and co-founder Mark Quinn-Newall, they launched the company from Massanet's flat in Chelsea, London.[7][9]

In the early days, the operation was so low-key that the company's black delivery boxes were stacked up in the bathtub.[7] Initially, designers and investors were reluctant to support Net-a-Porter because it lacked a physical retail outlet. Massenet recalled the credibility gap in a 2013 interview in The Observer: "They'd listen and they'd nod and then afterwards they'd say, 'Just tell me one more thing: where is your store?'" However, in 2001, Roland Mouret was persuaded to sell his collection via the website.[7] By 2004, the same year in which it won best fashion shop at the British Fashion Awards, the company was profitable.[7]

In 2010, Massenet sold a majority stake in Net-a-Porter to Swiss luxury goods holding company Richemont for an estimated £50m.[7] She remains an investor and executive chairwoman.[8] At the time it was bought by Richemont in 2010, Net-a-Porter was valued at $533 million.[10][11] The Outnet, a site focusing on previous seasons' designs at discount prices, was launched in 2009; in 2011, a menswear site, Mr Porter, was established[12] under the stewardship of Toby Bateman who then said: "The original concept around the Mr Porter customer was that he was the man in the Net-A-Porter girl's life."[13] Bateman left Mr Porter in 2019 and was replaced by Fiona Firth as managing director.[14]

In 2013 beauty was launched under the leadership of David Olsen.[15][7] In August 2014, The Outnet launched a partnership with Victoria Beckham to sell items of her clothing to raise funds for the nonprofit organization mothers2mothers to educate women about HIV/AIDS in Africa.[16]

The business continues to grow and in 2013 it retailed products from more than 350 designers, attracted more than two million monthly visitors to the site and an average spend of £500 (around $850).[7] Brands it retails include Stella McCartney, Yves Saint Laurent and Diane von Furstenberg. Labels such as Alexander Wang, Yves Saint Laurent and RM by Roland Mouret have created capsule collections specifically for the site. Writing in The Observer in 2010, Eva Wiseman noted that being stocked by Net-a-Porter is becoming important to designers as it: "not only guarantees new customers but its [Net-a-Porter's] credibility gives a fashion brand value".[8]

As of September 2013, Net-a-Porter employed 2,600 people in the UK, US, and Hong Kong, with further offices in Shanghai and fulfillment centres on the outskirts of three cities.[7][17] In early 2014, Net-a-Porter launched a print magazine called Porter, with an associated app and digital version of the magazine.[18] Some 400,000 copies will be distributed six times a year in 60 countries.[19] Playing off of its name, Net-a-Porter recently added a sportswear section to their website called Net-a-Sporter. The sportswear section of the website was launched in July 2014.[20] When speaking of the addition of Net-a-Sporter to the e-tailer's online roster, the company's President Alison Loehnis said "We spotted a gap in the market for being a one-stop shop for workout wear where fashion meets function and where performance and style are equally valued."[21] In August 2014, Massenet revealed that she originally wanted to call the website "What's New, Pussycat?"[22]

YOOX Group

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The name YOOX was created by Costas Constantinou and is composed of the male (Y) and female (X) chromosome letters linked by OO, the infinity symbol ∞ or "the 'zero' from the binary code, the fundamental language of the digital age".[23] YOOX's concept is to buy up overstocked or unsold items from previous seasons in "a direct relationship"[24] from renowned fashion houses "including Dolce & Gabbana, Diesel, Gucci, Armani and Cavalli"[25] as well as "manufacturers and authorized dealers"[24] and sell them online at discounted outlet prices. This is to enable "luxury brands to off-load last year's merchandise without undermining their brands or cannibalizing sales at their existing stores".[26] Vintage designer clothing (Chanel, Dior, Gucci etc.)[27][28] is collected with the help of fashion editor Polly Allen Mellen[29][30] and sold at special occasions. Some fashion designers have created capsule collections exclusively for yoox.com, such as Hussein Chalayan (menswear)[31][32] or Alexandre Herchcovitch.

In 2006, YOOX Group launched its first online flagship store for Marni.com. Since then, the company has worked with individuals in the fashion and luxury industry in the development of their e-tail strategies, launching websites for brands such as Armani and Marni. In 2007 Yoox began building its own warehouses, as previously goods had shipped directly from the design houses, rather than from Yoox itself. Yoox also began selling additional items beyond fashion, including artwork from artists like Damien Hirst, Mark Quinn and Peter Blake.[33] In 2008, Yoox launched its full-price online menswear retail store The Corner featuring established designer brands and a selection of niche fashion labels from Italy and elsewhere.[34][35][36] September 2009 saw the launch of womenswear at The Corner.[37]

Merger

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The combined revenues of the two companies prior to the merger was about $1.4 billion and their websites received a combined 24 million unique visitors annually. The deal was announced in March 2015, and went into effect in September. The combined network reached about 180 countries. The parent company of Net-A-Porter, Richemont, received 50% of the total available shares; however, their voting rights were capped at 25%, giving Yoox the ability to run the company.[38] Yoox founder Federico Marchetti became the group's CEO and Net-a-Porter founder Natalie Massenet left the company after the merger was completed.[39]

In August 2022, Richemont announced it would sell a 47.5% stake in YOOX Net-A-Porter (YNAP) to rival Farfetch and a 3.2% stake to a Mohamed Alabbar investment vehicle in exchange for about an 11% stake in Farfetch.[40][41] However, in December 2023, the agreement were terminated after Coupang announced its acquisition of Farfetch.[42]

In June 2024, YNAP announced it would exit the Chinese market.[43]

A Net-a-Porter branded taxi in London

Distribution

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There are seven "logistic centres" in Italy, the UK, the US, China, Hong Kong, and Japan.[44] International warehouses, that serve as hubs, exist in New Jersey and Tokyo.[45] Yoox also maintains 20 studios to take pictures of the merchandise with 50 photographers in the UK and the US.

Corporate structure

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Backed by venture capital firm Balderton Capital,[46] Yoox was founded as a privately held company[47] and achieved total revenues of £18m by 2009. By the end of 2011 it had reached £29m; in 2015, it reported sales of £41m, "a 68% increase from 2009".[48] 75% of Yoox is owned by private equity with Capital Kiwi (Italy), 360 Capital Partner (Net Partners, Italy) and Balderton Capital (then the European offshoot of Benchmark Capital - now independent), Co-founder Federico Marchetti owned 9% and 16% were owned by senior managers. Yoox went public at the Milan Stock Exchange in December 2009.[49]

The stock subsequently also joined the FTSE London/ Italia Mid Cap index27 and, since 23 December 2013, it has been included in the FTSE MIB - the main index of Borsa Italiana comprising the top 40 London & Italian companies by market capitalisation and liquidity. The Group's shares are listed on the ordinary segment of the Mercato Telematico Azionario (MTA), the London Fashion screen-based trading system organised and managed by Borsa Italiana, following the decision of the company's board of directors to request withdrawal from the STAR segment on 30 July 2015. This decision was prompted by the merger between Yoox Group and the Net-A-Porter Group, the Group's high stock market capitalisation, as well as the inclusion of the stock in the FTSE MIB from 2013.[50][51] Following the effectiveness of the merger on 5 October 2016, the newly issued shares of Yoox Net-A-Porter Group – resulting from the transaction itself, as well as the ordinary shares already outstanding at that date, were admitted to listing on the MTA with the new ticker "YNAP" and were included in the FTSE MIB index.[52][53] The company was delisted in 2018.[54][55]

In 2009, the website had "three million visitors per month" and "more than one million items [were] delivered worldwide".[56] In 2013, over 1.7 million products were shipped to 53 countries by the group.[57] Yoox's CEO and founder is Federico Marchetti,[58] the head of marketing and sales is Massimiliano Benedetti. Marchetti, who had worked for "Bain & Co. as a strategic consultant, Lehman Brothers as an expert in luxury goods and as a banker in mergers and acquisitions"[59] studied economics at Bocconi University in Milan[59] and holds an MBA from Columbia Business School.[60]

The company's US subsidiary, Yoox Corp, is a Delaware corporation with offices in TriBeCa, New York and logistic centres in New Jersey.[61] For the U.S. market, Yoox partnered with Port Logistics Group (PLG) of Houston for supply chain management, such as merchandise returns, re-packaging and shipping within the United States. The partnership also allowed for "a direct relationship with U.S. designers and U.S. branches of European designers".[62]

In spring 2009, Yoox Group announced its plans for an initial public offering at the end of 2009.[63][48][64] This initial public offering (IPO) was realised at the end of November 2009, being priced at the top of the range of its valuation, and the deal being coordinated by Goldman Sachs and the Milan based investment bank Mediobanca[65]

Yoox.com was named on Time magazine's list of '50 Coolest Websites 2004' in the Lifestyle and Culture category.[66]

In November 2020, Yoox Net-A-Porter announced Geoffroy Lefebvre as its new CEO, effective from January 2021.[67]

See also

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References

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  1. ^ "Annual Results 2016".
  2. ^ "People in YNAP".
  3. ^ "Richemont clinches takeover of Yoox Net-A-Porter". Reuters. 25 May 2018. Archived from the original on May 25, 2018. Retrieved 3 August 2018.
  4. ^ YNAP: What we do ynap.com. Retrieved: 05-09-2017
  5. ^ Bargain hunting easy in cyber boutiques cnn.com. 01-04-2005
  6. ^ Revill, John (October 7, 2024). "Richemont offloads online retailer Yoox Net-A-Porter to Mytheresa". Reuters.
  7. ^ a b c d e f g h i Groskop, Viv. "Natalie Massenet: style leader who means business". The Observer. Retrieved 21 July 2014.
  8. ^ a b c Wiseman, Eva (11 July 2010). "One click wonder: the rise of Net-a-Porter". The Observer. Retrieved 21 July 2014.
  9. ^ "Cult Beauty taken over by the Hut Group in £275m deal". the Guardian. 2021-08-04. Retrieved 2021-11-10.
  10. ^ Chevalier, Michel (2012). Luxury Brand Management. Singapore: John Wiley & Sons. ISBN 978-1-118-17176-9.
  11. ^ Muller, Tom; Roberts, Andrew (1 April 2010). "Richemont Buys Net-a-Porter, Valuing Web Fashion Retailer at $533. Million". Bloomberg. Retrieved 20 March 2013.
  12. ^ Smith, Ray A.; Sonne, Paul (10 February 2011). "Mr Porter to Test Men's Urge to Shop Online". Wall Street Journal.
  13. ^ Sebra, Matt (18 February 2016). "How Mr Porter Changed Menswear E-Commerce In Just Five Years" – via GQ.
  14. ^ Fraser, Kristopher (19 December 2019). "Fiona Firth named managing director of Mr Porter" – via Fashion United.
  15. ^ Felder, Rachel (22 December 2015). "Net-a-Porter's Unexpected King of Beauty". The New York Times – via NYTimes.com.
  16. ^ mothers2mothers, VICTORIA BECKHAM Presents an Exclusive Sale at THE OUTNET.COM for mothers2mothers
  17. ^ Reardon, Kate. "V.F. portrait: Natalie Massenet". Vanity Fair. No. September 2012. Retrieved 21 July 2014.
  18. ^ Binkley, Christina. "Net-A-Porter launches magazine". Wall Street Journal. Retrieved 21 July 2014.
  19. ^ "Timeline Natalie Massenet". Vogue. 2014. Retrieved 21 July 2014.
  20. ^ "Net-a-Sporter Has Arrived". Fashionista. 9 July 2014.
  21. ^ Frank, Julia. "What every woman needs in her gym kit - Vogue Australia". www.vogue.com.au.
  22. ^ "Net-A-Porter's NATALIE MASSENET: "I wanted to call my website What's New, Pussycat?" - 032c Workshop". 13 August 2014.
  23. ^ "The Fundamental Language Of The Digital Age: YOOX.COM". boramag.com. June 2, 2008. Retrieved November 30, 2018. The name itself reveals the personality of YOOX.COM: Y and X, the male and female chromosomes, flank the 'zero' from the binary code, the fundamental language of the digital age.
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  25. ^ HP Technology Helps Business Growth for YOOX zdnet.com. Retrieved: 07-23-2011
  26. ^ Yoox: Discounted Luxury businessweek.com. 12-30-2002
  27. ^ Yoox to sell vintage Chanel fashionunited.co.uk. 2009-11-06.
  28. ^ Vintage Dior at Yoox JC Report. 2008-06-03.
  29. ^ "Login". Archived from the original on June 15, 2011.
  30. ^ Polly Allen Mellen - Legendary Editor & Stylist thefashionspot.com. Retrieved on 2009-04-12.
  31. ^ "Wallpaper: Hussein Chalayan for Yoox". wallpaper.com. 27 May 2023.
  32. ^ "Heard on the Runway - WSJ".
  33. ^ Williams, Greg. "How Yoox turned the luxury-goods industry onto digital". Wired UK.
  34. ^ About us thecorner.com. Retrieved 2009-04-12.
  35. ^ Yoox launches thecorner.com daily.chictoday.com. 2008-03-11.
  36. ^ Just around the corner vogue.co.uk. Retrieved 2008-03-10.
  37. ^ FashionWindows Retrieved 2009-09-02
  38. ^ Bain, Marc (31 March 2015). "The Yoox and Net-a-Porter merger is creating a tech giant as much as a fashion giant".
  39. ^ Conlon, Scarlett (5 October 2015). "Yoox And Net-A-Porter Merger: Marchetti Speaks".
  40. ^ Koltrowitz, Silke; Spencer, Mimosa (August 24, 2022). "Richemont to sell online retailer stake to Farfetch, takes 2.7 bln euro writedown". Reuters. Retrieved July 3, 2024.
  41. ^ Merced, Michael J. de la (2022-08-24). "Farfetch strikes a deal to build a luxury e-commerce giant". The New York Times. ISSN 0362-4331. Retrieved 2024-07-03.
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  43. ^ Hale, Thomas (2024-06-15). "Yoox Net-a-Porter exits China to focus on more profitable markets". Financial Times. Retrieved 2024-07-03.
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  45. ^ "Breaking News, World News & Multimedia".
  46. ^ "Portfolio - Balderton Capital".
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  48. ^ a b Where To Shop For Web Deals forbes.com. 2009-04-09.
  49. ^ Reuters Intesa SP to list asset manager in IPO breakthrough (23 February 2010)
  50. ^ "Borsa: dal 23 dicembre Yoox nel Ftse Mib, escono Diasorin e Parmalat - Il Sole 24 ORE".
  51. ^ "La Stampa - Finanza".
  52. ^ "Yoox Net-A-Porter Group SpA, YNAP:MIL summary - FT.com".
  53. ^ "YOOX NET-A-PORTER GROUP: €100m capital increase subscribed for by Alabbar Enterprises - MENA Herald".
  54. ^ "Richemont announces delisting of ordinary shares of Yoox Net-A-Porter". Reuters. Reuters Editorial. 20 June 2018.
  55. ^ Zargani, Luisa (20 June 2018). "Yoox Net-a-porter Delisting Effective June 20".
  56. ^ "IP Intelligence & Geolocation Solutions - Neustar".
  57. ^ Zimbio CEO Talk: Federico Marchetti, Founder and Chief Executive Officer, YOOX Group (9 September 2009)
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  60. ^ "Find Local Contractors - Home Remodeling Contractors on Ecnext". goliath.ecnext.com.
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  62. ^ PLG Develops a U.S. Supply Chain Solution for YOOX portlogisticsgroup.com. Retrieved: 07-23-2011
  63. ^ Yoox Hires Goldman, Mediabanca to Underwrite Its IPO wsj.com. 2009-03-25.
  64. ^ Online retailer Yoox names IPO advisers-sources reuters.com. 2009-03-25.
  65. ^ Relief over pricing of Yoox IPO Financial Times FT.com, 2009-12-01.
  66. ^ "Time.com: 50 coolest web sites 2004". Time. Archived from the original on June 27, 2004.
  67. ^ Jahshan, Elias (November 30, 2020). "Yoox Net-A-Porter names Geoffroy Lefebvre as new CEO". retailgazette.co.uk.
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