Johann Rupert, Chairman of Richemont said:
''Richemont has been a pioneer in luxury e-commerce, first as a minority shareholder of Net-A-Porter in its infancy and then as a controlling shareholder since 2010. We are proud of Net-A-Porter’s achievements under the leadership of Natalie Massenet, ably assisted by a wonderful team of professionals.
Established business models are being increasingly disrupted by the technological giants. It is with this in mind that we believe it is important to increase leadership and size to protect the uniqueness of the luxury industry. The merger of the two leaders will further enhance an independent, neutral platform for a sophisticated clientele looking for luxury brands.YOOX Group is the global Internet retailing partner for leading fashion brands, which has established itself amongst the market leaders with the multi-brand online stores yoox.com, thecorner.com and shoescribe.com, as well as with numerous mono-brand online stores. YOOX S.p.A. is incorporated in Italy and is listed on Borsa Italiana, the Italian stock exchange.''
The new company will be called Yoox Net-A-Porter Group. It will continue to be based and listed on the Stock Exchange in Italy. The combination of the two actors should represent a turnover of € 1.3 billion in 2014 to an adjusted operating profit of 108 million euros.
That sounds to be a new business strategy from the Richemont group witch is diversifying in other territories that the only luxury watches (jewellery+watches = 80% sales revenues 2014). The richemont group already combined the wholesale and retail activities (sales revenues breakdown in 2014: 55% RTL, 45% WS, sales revenues 2014 is €b10.649). It strengthens its retail activities (Net a porter sales revenues 2014 is estimated for €M500 ie 5% of total richemont sales revenues) in complementary sectors to its original business (luxury watches). Is it a response to the arrival of smartwatches? (to diversify). How Yoox suppliers will they agree to see a group, owner of others brands (partly of them in direct competition), have knowledge of own business conditions with YOOX?