Richemont, the Swiss luxury conglomerate which owns YOOX Net-a-Porter Group (YNAP), has announced that they will be selling a 47.5% stake of the loss-making online fashion retailer YNAP to FARFETCH, and 3.2% to Symphony Global, an investment private limited company based in Dubai and run by Emirati real estate mogul Mohamed Alabbar, also known as the founder of Emaar Properties.
The deal between Richemont, FARFETCH and Symphony Global, would also pave the path for FARFETCH to potentially acquire remaining shares in YNAP. Back in November of 2021, Richemont had announced that it was in talks with FARFETCH about potentially selling its stakes in YNAP, but that Richemont was looking for more investors.
According to Reuters, The agreement would allow “Richemont brands and YNAP to switch to Farfetch technology,” a move that is essential for YNAP’s success, “and to boost the watch and jewellery offer on FARFETCH’S own retail site, with the addition of Richemont brands.”
YNAP has been operating at a loss on their balance sheet and adopting FARFETCH’s Platform Solutions -the company’s white-label retail technology offering- would allow them to shift to a hybrid business model and allow for a more profitable future.
In a statement today, Founder, Chairman and CEO of FARFETCH, José Neves announced the news, “Today, FARFETCH and Richemont advanced significantly our Luxury New Retail vision for the digitization of Luxury. This significant partnership unequivocally establishes FARFETCH as a pre-eminent global platform for luxury.” He continued, “The launch of Richemont Maison’s e-concessions on the FARFETCH Marketplace is a step change in our strategy for hard luxury, which represents more than 20% of the Luxury industry globally, but just 3% of FARFETCH sales, and is an area where we see much stronger customer demand relative to the supply we have had to date.”
“Last but not least, we are excited to acquire 47.5% of YNAP and partner with Richemont in YNAP’s transformation into a hybrid business model which we believe will drive strong growth and profitability for YNAP. This investment and work we will do with FARFETCH Platform Solutions for YNAP will pave the way to a potential acquisition by FARFETCH, which would create a complementary portfolio of iconic luxury destinations, appealing to different demographics, price points and regions.”
Mohamed Alabbar also released a statement, where he shared his own expertise on the Middle Eastern market and its potential, “I am also confident that our deep understanding of the Middle Eastern luxury market, with its tech-savvy and influential customers, will be of great value to YNAP going forward.”
Stay tuned for more updates.
