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Yoox Net-a-Porter confident in China

While luxury retail sales have slowed markedly in China, luxury fashion e-tailer Yoox Net-a-Porter CEO Federico Marchetti is confident of strong growth there.
He believes the industry’s continued shift away from physical to online retail will continue to benefit his company, and says its Net-a-Porter and Mr Porter brands are still relatively new in China. In Hong Kong, both brands have been ranked in the top five in terms of sales.
Meanwhile, Marchetti says Yoox has been more successful in China, resonating with the culture of discounted purchase. He feels the market has matured enough, however, to embrace full-price retailers.
Following trials with Mr Porter, Yoox Net-a-Porter is ramping up sales of high-end jewellery and watches across its portals. As people feel more comfortable paying for higher-priced items online, it is becoming easier to target high-net-worth individuals to sell jewellery and watches.
Marchetti  says the company continues to be a disrupter in the luxury fashion industry, and the enlarged group can hit more market segments.
Marchetti founded internet retailer Yoox in 2000, slowly winning over Italy’s fashion brands and running their eCommerce sites. After an aggressive pursuit, he last year formed a merger with online fashion retailer Net-a-Porter.
Now the company has four web portals: unisex retailer Yoox, Net-a-Porter, menswear retailer Mr Porter and outlet site The Outnet. It also has about 40 single-brand internet retail stores for such labels as Armani, Chloe and Dolce & Gabbana.
Yoox Net-a-Porter has released a five-year plan outlining how the group intends to “robustly” grow its business, looking for annual net revenue growth of 17 to 20 per cent, positive cash flow from 2018 onwards, improved profitability, and complete integration of its portals.

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