YOOX Net-a-Porter Group

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YOOX NET-A-PORTER GROUP S.p.A
Public company
Traded as BITYNAP
Industry Fashion and leisure
Founded 2015
Founder Federico Marchetti
Headquarters Milan, Milano, Italy
Key people
Federico Marchetti, CEO
Products Fashion products
Revenue 1.7 Billion Euros (2015) [1]
Number of employees
3,901 (2015) [1]
Subsidiaries UK, US, Japan, France, Spain, China, Hong Kong
Website www.ynap.com

Yoox Net-A-Porter Group, stylized as YOOX NET-A-PORTER GROUP S.p.A (MTA:YNAP) is an online fashion retailer created on 5 October 2015 after the merger between Yoox GROUP and THE NET-A-PORTER GROUP. The company runs multi-brand in-season online stores (Net-A-Porter and Mr Porter) (both fully capitalized in their stylization), multi-brand off-season online stores (Yoox and The Outnet) (both fully capitalized in their stylization), as well as several online flagship stores for singular brands. Yoox was founded by Federico Marchetti,[2] in Zola Predosa near Bologna in 2000 and has become an e-commerce company that serves "more than 100 countries worldwide".[3][4]

Yoox Net-A-Porter Group history[edit]

Yoox Group history[edit]

The name, Yoox, is composed of the male (Y) and female (X) chromosome letters linked by OO, the infinity symbol ∞ or “the ‘zero’ from the binary code, the fundamental language of the digital age”.[5] YOOX’s concept is to buy up overstocked or unsold items from previous seasons in "a direct relationship"[6] from renowned fashion houses "including Dolce & Gabbana, Diesel, Gucci, Armani and Cavalli" [7] as well as "manufacturers and authorized dealers"[6] and sell them online at discounted outlet prices. This is to enable "luxury brands to off-load last year's merchandise without undermining their brands or cannibalizing sales at their existing stores".[8] Vintage designer clothing (Chanel, Dior, Pucci etc.)[9][10] is collected with the help of fashion editor Polly Allen Mellen [11][12] and sold at special occasions. Some fashion designers have created capsule collections exclusively for yoox.com, such as Hussein Chalayan (menswear) [13][14] or Alexandre Herchcovitch.

The company was founded by Federico Marchetti. In 2006, Yoox Group launched its first Online Flagship Store for Marni.com. Since then, the company has worked with individuals in the fashion and luxury industry in the development of their e-tail strategies, launching websites for brands such as Armani and Marni. In 2007 Yoox began building its own warehouses, as previously goods had shipped directly from the design houses, rather than from Yoox itself. These warehouses started to use Radio Frequency Identification for its goods in 2010, which had until this point only been used in the grocery industry. Goods were also photographed in house by 60 photographers in 55 in-house studios, producing about 15000 photographs per day in order to represent their stock online. Yoox also began selling additional items beyond fashion, including artwork from artists like Damien Hirst, Mark Quinn, and Peter Blake.[15] In 2008, Yoox launched its full-price online menswear retail store The Corner featuring established designer brands and a selection of niche fashion labels from Italy and elsewhere.[16][17][18] September 2009 saw the launch of womenswear at The Corner.[19]

Net-A-Porter Group history[edit]

Net-a-Porter founder Natalie Massenet is an American-born former fashion journalist with Women's Wear Daily and Tatler.[20] She developed the concept of a magazine in website format where users could 'click' to buy while trying to source product online for a fashion shoot.[21] Having raised the £1.2m (approx $2m) start-up costs with the assistance of her then-husband, Massenet launched the company from their flat in Chelsea, London.[20]

In the early days, the operation was so low-key that the company's black delivery boxes were stacked up in the bathtub.[20] Initially, designers and investors were reluctant to support Net-a-Porter because it lacked a physical retail outlet. Massenet recalled the credibility gap in a 2013 interview in The Observer: "They'd listen and they'd nod and then afterwards they'd say, 'Just tell me one more thing: where is your store?'" However, in 2001, Roland Mouret was persuaded to sell his collection via the website.[20] By 2004, the same year in which it won best fashion shop at the British Fashion Awards, the company was profitable.[20]

In 2010, Massenet sold a majority stake in Net-a-Porter to Swiss luxury goods holding company Richemont for an estimated £50m.[20] She remains an investor and executive chairwoman.[21] At the time it was bought by Richemont in 2010, Net-a-Porter was valued at $533 million.[22][23] The Outnet, a site focusing on previous seasons' designs at discount prices was launched in 2009; in 2011, a menswear site Mr Porter was established[24] and in 2013 a small beauty website was launched.[20] In August 2014, The Outnet launched a partnership with Victoria Beckham to sell items of her clothing to raise funds for the nonprofit organization mothers2mothers to educate women about HIV/AIDS in Africa.[25]

The business continues to grow and in 2013 it retailed products from more than 350 designers, attracted more than two million monthly visitors to the site and an average spend of £500 (around $850).[20] Brands it retails include Stella McCartney, Yves Saint Laurent and Diane von Furstenberg. Labels such as Alexander Wang, Yves Saint Laurent and RM by Roland Mouret have created capsule collections specifically for the site. Writing in The Observer in 2010, Eva Wiseman noted that being stocked by Net-a-Porter is becoming important to designers as it: "not only guarantees new customers but its [Net-a-Porter's] credibility gives a fashion brand value".[21]

As of September 2013, Net-a-Porter employed 2,600 people in the UK, US and Hong Kong, with further offices in Shanghai and fulfillment centres on the outskirts of three cities.[20][26] In early 2014, Net-a-Porter launched a print magazine called Porter, with an associated app and digital version of the magazine.[27] Some 400,000 copies will be distributed six times a year in 60 countries.[28] Playing off of its name, Net-a-Porter recently added a sportswear section to their website called Net-a-Sporter. The sportswear section of the website was launched in July 2014 and hosts athletic wear from a variety of high end luxury brands. Net-a-Sporter features 10 different sections for activities such as the gym and cross train, run, yoga and dance, tennis, equestrian, swim and surf, sailing, après sport, and golf.[29] When speaking of the addition of Net-a-Sporter to the e-tailer's online roster, the company's President Alison Loehnis said "We spotted a gap in the market for being a one-stop shop for workout wear where fashion meets function and where performance and style are equally valued."[30] In August 2014, Massenet revealed that she originally wanted to call the website, "What's New, Pussycat?"[31] The current name is a play on the French expression "pret-a-porter," or "ready to wear."[32]

In March 2014, Net-a-Porter engaged ceft and company new york to celebrate the 1 year anniversary of their beauty division. The agency worked with key clients to create, design, and produce an interactive and on-brand environment that entertained, educated, and encouraged conversations in the press and on social media channels. The agency approach was to distill a singular message and to blast that message across all media. That message was: “Net-a-Porter is going to do for beauty what it has so successfully done for fashion, turn the business of beauty on its head” by offering international access to a rigorously curated selection of brands. The 2 day invite-only event was attended by editors of Vogue (Sarah Browne), Teen Vogue (Elaine Welteroth), W Magazine (Katie Jayne Becker), Nylon (Katie Dickens), InStyle (Kahlana Barfield) and their peers, and generated over 13 million impressions in 3 days[33] just on social media alone. This accounts for only those posts tagged with #netabeauty,[34] the full impact was far more broad. In August 2014, CEO Mark Sebba stepped down. His employees produced a video that went viral as an "Epic Sendoff."[35][36]

Merger[edit]

The combined revenues of the two companies prior to the merger was about $1.4 billion and their websites received a combined 24 million unique visitors annually. The deal was announced in March 2015, and went into effect in September. The combined network reached about 180 countries. The parent company of Net-A-Porter, Richemont, received 50% of the total available shares, however their voting rights were capped at 25%, giving Yoox the ability to run the company.[37] Yoox founder Marchetti became the group’s CEO and Net-a-Porter founder Natalie Massenet left the company after the merger was completed.[38] In 2017, the company will bring all of its technology staff under a single roof with a new headquarters in London, UK.[39]

Fashion house websites[edit]

In addition to its eponymous web site, the company, through Yoox Services (formed in 2006),[40] operates the full-price online stores of fashion houses Marni (launched in 2006), Emporio Armani (2007), Diesel (2007), Stone Island (2008), C.P. Company (2008), Valentino SpA (2008), Miss Sixty (2008), Costume National (2008), Energie (2008), Emilio Pucci (2008), Dolce & Gabbana (2009), Moschino (2009), Jil Sander (2009), DSquared² (2009), Bally Shoe (2009), Roberto Cavalli (2009), Napapijri (2010), Coccinelle (2010), Giuseppe Zanotti Design (2010), Alberta Ferretti (2010), Zeis House (2010), Maison Martin Margiela (2010), Ermenegildo Zegna (2010), Y-3 (2011), Brunello Cucinelli and Dirk Bikkembergs (2011), all of which are referred to as "powered by Yoox".[3][41][42][43]

A Net-a-Porter branded taxi in London.

Distribution[edit]

There are 7 "logistic centres" in Italy, UK, USA, China, Hong Kong, Japan.[44] “Each item is tagged with a radio frequency identification (RFID) tag, and is tracked to its exact location using a barcode detector”.[45] International warehouses, that serve as hubs, exist in New Jersey and Tokyo.[46] Yoox maintains "20 studios to make pictures [of the merchandise] with 25 photographers" in Italy and the US.[47]

Corporate structure[edit]

Backed by venture capital firm Balderton Capital,[48] Yoox was founded as a privately held company [49] and achieved total revenues of $26m in 2004. By the end of 2005 it had reached $70m.[50] In 2008, it reported sales of $138m, "a 48% increase from 2007".[51] 75% of Yoox were owned by private equity firms Capital Kiwi (Italy), 360 Capital Partner (Net Partners, Italy) and Balderton Capital (then the European offshoot of Benchmark Capital - now independent), founder Federico Marchetti owned 9% and 16% were owned by senior managers. Yoox went public at the Milan Stock Exchange on December 3, 2009, generated 95m in revenues from the IPO and was valued at €217m that day.[52]

The stock subsequently also joined the FTSE Italia Mid Cap index27 and, since 23 December 2013, it has been included in the FTSE MIB - the main index of Borsa Italiana comprising the top 40 Italian companies by market capitalisation and liquidity. The Group’s shares are listed on the ordinary segment of the Mercato Telematico Azionario (MTA), the Italian screen-based trading system organised and managed by Borsa Italiana, following the decision of the Company’s Board of Directors to request withdrawal from the STAR segment on 30 July 2015. This decision was prompted by the merger between Yoox Group and the Net-A-Porter Group, the Group’s high stock market capitalisation, as well as the inclusion of the stock in the FTSE MIB from 2013. ][53][54] Following the effectiveness of the merger on 5 October 2015, the newly issued shares of Yoox Net-A-Porter Group – resulting from the transaction itself, as well as the ordinary shares already outstanding at that date, were admitted to listing on the MTA with the new ticker “YNAP” and were included in the FTSE MIB index.[55][56]

From its beginnings in 2000, the Yoox internet platform was powered by Hewlett-Packard.[7] In 2007, the web site had "three million visitors per month" and "more than one million items [were] delivered worldwide".[57] In 2008, over 1.7 million products were shipped to 53 countries by the group.[58] Yoox’s CEO and founder is Federico Marchetti,[59] the head of marketing and sales is Massimiliano Benedetti.[60] Marchetti, who had worked for "Bain & Co. as a strategic consultant, Lehman Brothers as an expert in luxury goods and as a banker in mergers and acquisitions"[61] studied economics at Bocconi University in Milan [62] and holds an MBA from Columbia Business School.[63]

The company's US subsidiary, Yoox Corp, is a Delaware corporation with offices in TriBeCa, New York and logistic centres in New Jersey.[64] For the U.S. market, Yoox partnered with Port Logistics Group (PLG) of Houston for supply chain management, such as merchandise returns, re-packaging and shipping within the United States. The partnership also allowed for "a direct relationship with U.S. designers and U.S. branches of European designers".[65]

In spring 2009, Yoox Group announced its plans for an initial public offering at the end of 2009.[43][51][66] This initial public offering (IPO) was realised at the end of November 2009, being priced at the top of the range of its valuation, and the deal being coordinated by Goldman Sachs and the Milan based investment bank Mediobanca [67]

Yoox.com was listed among Time magazine’s list of '50 Coolest Websites 2004' in the Lifestyle and Culture category.[68]

See also[edit]

References[edit]

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  3. ^ a b Yoox: The Group yoox.com. Retrieved: 07-23-2011
  4. ^ Bargain hunting easy in cyber boutiques cnn.com. 01-04-2005
  5. ^ The Fundamental Language Of The Digital Age: YOOX.COM boramag.com. 06-02-2008.
  6. ^ a b The International Business Awards: Yoox SpA Stevie Awards. Retrieved: 07-23-2011
  7. ^ a b HP Technology Helps Business Growth for YOOX zdnet.com. Retrieved: 07-23-2011
  8. ^ Yoox: Discounted Luxury businessweek.com. 12-30-2002
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  19. ^ FashionWindows Retrieved 2009-09-02
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  22. ^ Chevalier, Michel (2012). Luxury Brand Management. Singapore: John Wiley & Sons. ISBN 978-1-118-17176-9. 
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  25. ^ mothers2mothers, VICTORIA BECKHAM Presents an Exclusive Sale at THE OUTNET.COM for mothers2mothers
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  35. ^ VIRAL VIDEO: Epic sendoff for beloved boss ABC
  36. ^ News, A. B. C. (1 August 2014). "Staff Treats Outgoing CEO to Best Goodbye Party of All Time". 
  37. ^ Bain, Marc. "The Yoox and Net-a-Porter merger is creating a tech giant as much as a fashion giant". 
  38. ^ Conlon, Scarlett. "Yoox And Net-A-Porter Merger: Marchetti Speaks". 
  39. ^ Rogers, Sam. "YOOX Net-A-Porter Unveils Plans For New Technology Hub". 
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  63. ^ Goliath: Profile Federico Marchetti - Dressed to impress
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  68. ^ Time.com: 50 coolest web sites 2004