Yoox Net-a-Porter to up its game with same-day delivery in Hong Kong
The online luxury-fashion retailer has invested in new shopping apps with the goal of becoming a mobile-only business, and is getting purchases to buyers quicker in key markets
Online luxury fashion retailer Yoox Net-a-Porter aims to be as mobile as its shoppers – and Hong Kong is high on its agenda.
Since the merger of Yoox and Net-a-Porter in 2015, chief executive Federico Marchetti has invested in new technology, added services such as seaplanes to drop off rush orders to the Hamptons, and plans to expand same-day services in key markets like Dubai. Now the world leader in its field, the company has launched a television shopping app with Apple TV and is making a big push into China and the Middle East.
Marchetti expects business from smartphones and tablets will account for three-quarters of total sales by the end of 2020. Today, it’s less than half. And shoppers using mobile devices spend big. Its 2.6 million customers shell out an average of US$366 (HK$2,838) per order.
The global luxury business has become increasingly competitive online. Neiman Marcus bought MyTheresa, a fashion e-commerce site last year, while Saks Fifth Avenue is offering more services for its online shoppers. And sites like renttherunway.com let customers rent designer outfits.
But Yoox Net-a-Porter is optimistic. It’s laid out plans that call for net revenue growth of 17 per cent to 20 per cent every year to 2020. That’s much higher than the 2 per cent to 3 per cent global luxury growth forecast for the period by consulting firm Bain & Co.
Marchetti sees Yoox and London-based Net-a-Porter, both founded in 2000, as complementary. He organised the company into three separate businesses – current season, under Net-a-Porter and the men’s brand Mr. Porter; off season, which is under The Outnet and Yoox businesses; and online flagship sites that include Giorgio Armani and Jimmy Choo.
“Net-a-Porter is becoming a one-stop shop for fashion consumers and a source of editorial content. And Yoox is a force in technology with a deep understanding of brands and websites,” says Robert Burke, president of his namesake New York-based luxury consulting business.
“We have the highest quality in terms of packaging, in terms of presentation, pictures, proximity with other brands,” he said. “We respect their pricing. We respect their markdown strategy.”
The company’s also working to integrate the experience of the physical flagship stores of the brands like Valentino’s Fifth Avenue store with their online presence.