Yoox-Net-a-Porter (Ynap) is severing its relationship with Alibaba. The e-commerce company, owned by Richemont, will soon dissolve Fengamo, the joint venture with China’s Alibaba with which it operates in the Asian country. The company’s goal is to focus its business on the most profitable markets, according to Yiting Wu, the company’s CEO. joint project To its employees this Thursday and applied World Water Day.
Repeat It had been operating in China for eleven years after landing in 2013. In 2018, Richemont signed an agreement joint project With Alibaba boosting its e-commerce in the Asian market, it was also a wise decision for the Chinese giant that was looking for credibility among luxury goods players in Europe.
Richemont’s intention to sell Ynap outright could have accelerated this decision, with the aim of canceling any long-term agreement and cleaning up the company’s business before selling it. Last August, Richemont attempted to sell 47.5% of Ynap shares to the American company Farfetch, although the financial problems faced by the company itself thwarted the acquisition.
Yoox-Net-a-Porter has been operating in China for eleven years after landing in 2013
Richemont began exploring a sale of Ynap in October last year, and even then, Farfetch was the buyer with the most votes. The US e-commerce company, Ynap’s main competitor, is seven years younger than Net-à-Porter and has surpassed it in recent years in terms of market share and profitability. For its part, Ynap does not publish its results, so the magnitude is unknown Analyst estimates have put it at a loss for years.
However, given the impossibility of Farfetch retaining the business, other buyers have emerged: Mytheresa or investment funds such as Bain Capital and Permira are also considering buying the company, in a process brokered by Goldman Sachs. At the moment, it is not known whether negotiations have progressed and who is the main operator in the offer.
Richemont ended the last financial year with sales 3% higher than in 2022, reaching €20,616 million. The group’s sales were affected by the slowdown in the fourth quarter, with sales growing by just 1%. For its part, the company’s net profits increased significantly. The company generated profits of €355 million, almost eight times what it achieved in 2022. The group’s sales grew in all markets, except for the online channel. Asia-Pacific led growth at 4% and Japan at 8%.
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