Luxury e-commerce platform Yoox Net-a-Porter (YNAP), under the ownership of Richemont, has announced its decision to withdraw from the Chinese market.
As a result, all of its online channels in China, including Tmall, WeChat Mini Programs, Xiaohongshu (Little Red Book), and Douyin, will be closed by March 20, 2025. After-sales services will continue until April 22, 2025.
Once one of the world’s largest luxury e-commerce platforms, Yoox Net-a-Porter struggled to keep up with the intensifying competition and evolving consumer demands in the Chinese market, which ultimately led to its decision to exit.
Challenges Faced by Yoox Net-a-Porter in the Growing Chinese Market
Founded in 2015 through the merger of Net-a-Porter and Yoox, Yoox Net-a-Porter was initially regarded as the world’s largest luxury e-commerce platform. By 2017, its annual revenue had reached €2.1 billion, and it continued expanding its global operations.
In 2018, the company partnered with Alibaba to establish the Fengmao joint venture, marking its full-scale entry into the Chinese market. However, the company’s strategy failed to align with the dynamics of the local market, and it struggled to achieve significant success in China’s highly competitive luxury e-commerce space.
Chinese consumers increasingly demand personalized services, fast delivery, and 24/7 customer support, but Yoox Net-a-Porter’s business model was primarily designed for Western markets, making it difficult to meet the specific needs of Chinese shoppers.
Furthermore, Xiaohongshu and JD.com have emerged as major players in China’s luxury e-commerce landscape, transforming consumer shopping behavior. With enhanced offline experiences at luxury boutiques and department stores, many high-end shoppers have shifted their focus away from online platforms. These market changes have significantly influenced Yoox Net-a-Porter’s decision to exit China.
Richemont’s Strategic Restructuring and Sale to Mytheresa
Yoox Net-a-Porter’s exit from China is part of Richemont’s broader restructuring plan on a global scale. The company has struggled with profitability, becoming a financial burden for Richemont. Between 2010 and 2023, Richemont recorded a €1.8 billion non-cash impairment on YNAP.
In August 2022, Richemont announced a plan to sell 50.7% of YNAP’s shares to British luxury e-commerce company Farfetch and a Middle Eastern investor. However, the deal collapsed at the end of 2023 when Farfetch faced a financial crisis. Following this setback, Richemont decided in October 2023 to sell 100% of YNAP to Mytheresa, with the transaction expected to close in the first half of 2025.
Richemont is set to record a €1.3 billion write-down from this sale, further highlighting the significant losses incurred from its luxury e-commerce investments.
Shifts in the Luxury E-Commerce Market
Yoox Net-a-Porter’s withdrawal from China signals a major turning point in the luxury e-commerce industry. In China, consumers are increasingly prioritizing exclusive in-store experiences at flagship boutiques and high-end department stores, prompting brands to strengthen their “digital-meets-physical” strategies.
Moreover, this move is not just about Yoox Net-a-Porter—it reflects the broader challenges facing the entire luxury e-commerce sector. In recent years, platforms such as Secoo and Matches have also encountered financial crises and bankruptcy, highlighting the difficulties of sustaining a profitable luxury e-commerce business.
Moving forward, luxury e-commerce platforms will need to go beyond mere product sales by fostering direct engagement with brands and offering high-value services to remain relevant in an increasingly competitive landscape.
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