Swiss luxury giant Richemont has sold a 47.5% stake in Yoox Net-A-Porter (YNAP) to Farfetch, in addition to a 3.2% stake to Symphony Global (one of the investment vehicles of Emirati mogul Mohamed Alabbar), making YNAP a neutral platform with no controlling shareholder.
The deal is said to represent a significant step in achieving the Cartier, Chloé and Dunhill owner’s vision of making YNAP a neutral industry-wide platform.
It also lays a path towards Farfetch potentially acquiring the remaining shares in YNAP, bringing together their complementary businesses, but, in the process, ending YNAP's new status as a neutral platform.
The partnership is further claimed to mark a step change in Richemont Maisons’ omnichannel distribution capabilities; a key feature of the deal is that most Richemont Maisons will adopt Farfetch Platform Solutions for their e-commerce operations and connect their physical boutiques globally.
“Today’s announcement is a significant step towards the realisation of a dream I first voiced in 2015 of building an independent, neutral online platform for the luxury industry that would be highly attractive to both luxury brands and their discerning clientele,” said Richemont’s Chairman, Johann Rupert.
“We knew back then that if we wished to control our own destiny and protect the uniqueness of the luxury industry as it was digitalised, we would need to collaborate as the task was too big to undertake on our own.
“Farfetch's sophisticated technology will enable Richemont Maisons to benefit from the best route to market and realise their Luxury New Retail vision, while implementing a hybrid model at YNAP will greatly enhance its prospects.
“We have adjusted YNAP’s valuation to bring it in line with today’s market environment and will receive, in exchange, shares in Farfetch, further aligning our interests.
“As a supportive shareholder and a Luxury New Retail partner, we will look to build the perfect platform for the future, enabling the luxury industry to flourish in an increasingly digital economy.”
José Neves, Farfetch’s Founder, Chairman and CEO, said: “We are excited to acquire 47.5% of YNAP and partner with Richemont in YNAP’s transformation into a hybrid business model which we believe will drive strong growth and profitability for YNAP.
“This investment and work we will do with Farfetch Platform Solutions for YNAP will pave the way to a potential acquisition by Farfetch, which would create a complementary portfolio of iconic luxury destinations, appealing to different demographics, price points and regions.”
Alabbar, the founder and owner of Symphony Global, added: “I am… confident that our deep understanding of the Middle Eastern luxury market, with its tech-savvy and influential customers, will be of great value to YNAP going forward.”