Swiss luxury goods group Richemont has sold 50.7% of its shares. farfetcha marketplace specialized in designer fashionhas acquired 47.5% of these shares and has stated that it will buy the rest of the shares in the future. The union of the two companies creates one of the biggest brands in the sector, since it will be valued at nearly $4.7 billion (4,724.4 million euros).
Some analysts comment that this has been a very good deal for Farfetch. The Portuguese company has become the main shareholder of Yoox Net-a-Porter (YNAP). While YNAP owner Richemont becomes a Farfetch shareholder and will withdraw from YNAP. Farfetch will now control all Yoox Net-a-Porter brands including: Net-a-Porter, Mr. Porter, The Outnet and discount channel Yoox.
This is not the first time that the two fashion companies have joined forces.. Farfetch and YNAP started out as great rivals, but at the end of 2020 they signed an agreement with Alibaba to grow in the Chinese market.
Farfetch has a market capitalization of 3,630 billion dollars (3,632 million euros) and Yoox-Net-A-Porter He has assets valued at between $870 million and $961 million, according to BNP Paribas Exane..
Who is Yoox-Net-A-Porter?
Ynap born in 2015 when RichemontSwiss conglomerate, joined Yoox, founded by Federico Marchetti, and Net-A-Porterof Natalie Massenet, creating the largest conglomerate of luxury clothing with online sales. The two companies were born in 2000 and have been known for innovating in their sector:
- NET-A-PORTER is the first to enable same-day delivery service.
- YOOX was the first brand to hold a “see now, buy now” event
- NET-A-PORTER and YOOX were among the first companies in the fashion sector to have an app on the AppStore
- YOOX allowed people to buy the clothes that appear directly in a video.
Richemont’s objective when it acquired the two platforms was promote the growth of the platform and achieve a gross operating profit (ebitda) of sixty million euros in 2018.
Farfetch increases your referrals
For the quarter ending June 30, Farfetch reported that its revenue increased 10.7% to $579.3 billion. In the presentation of the results José Neves, Founder, Chairman and CEO of Farfetchsaid: “At Farfetch, our mission is to be THE global platform for luxury. This week we celebrate a major step toward that mission, with a transformational agreement that promotes our association Luxury New Retail (LNR). with Richemont«.
Farfetch will double its referrals thanks to the acquisition of YNAP. And not only that, now the Portuguese company will add to its 3.7 million active customers the 4.1 million YNAP; although we cannot forget that the type of client of each company is different, but they share their taste for fashion and luxury objects.
Neves also explained that the company’s customers are digital natives, while those of Ner-A-Porter and Mr Porter are older people who started shopping online later. This will allow the company to have clients from an age range between 18 and more than 35 years, which brings them closer to their goal of being the luxury platform par excellence.