- Wendela van den Broek |
Online retail group Yoox Net-a-Porter has unveiled ambitious plans for the run-up to 2020. The Italian company’s Chief Executive Federico Marchetti claims it intends to grow faster than the online retail market by ‘leading through mobile’.
YNAP says it expects to increase its adjusted core profit margin to 11 to 13 percent by 2020, up from 8 percent last year, as it focuses on selling via mobile devices, a channel with great potential. Net revenue growth is projected at 17 to 20 percent. The group also expects to generate free cash flow from 2018 onwards.
Prada joins the fray
Not only does the group rely on mobile to generate growth. An enriched product offering is also set to contribute significantly to its growth. YNAP predicts that the newly launched fine jewellery and watches division, offered via Net-a-Porter and Mr Porter, will grow to 100 million euros, while private label sales via Yoox and TheOutnet nearing 10 percent of the division’s sales by 2020.
Net-a-Porter and Mr Porter are rapidly adding to their assortment of exclusive luxury brands. A deal with Prada to sell the brand’s ready-to-wear collection, bags, shoes and small leather goods via the two sites was announced just ahead of the publication of the group’s growth plans and is regarded as a particular coup. The only other luxury online retailer to pull this off is MyTheresa, which will launch on the same day.
Net-a-Porter also managed to get Chanel on board, another brand that long resisted selling online. The French brand launched a shop-in-shop on the site, where it sells a capsule collection of fine jewellery called Coco Crush.
Brexit not an impediment
Despite much being made of the impact of Brexit on retail, YNAP says it ‘remains fully committed to its presence in the UK’ and, in fact, intends to expand its London headquarters and hire new staff in the UK.
”The Group enjoys well-balanced GBP-denomited costs and revenues, and therefore the impact of a depreciation of the the GBP again the Euro on profitability is expected to be neutral in 2016 and onwards,” YNAP said in its statement. “YNAP remains confident in the strengths of its Brands: the Group expects to outperform the markt thanks to its highly diversified geographical spread and well-balanced business mix.”
YNAP was formed last year through the merger of Yoox with Net-a-Porter. The group not only has its own multibrand online retail sites Net-a-Porter, Mr Porter, The Outnet and Yoox, but also runs the online stores of luxury brands like Valentino and Giorgio Armani.
Image 1:CEO Federico Marchetti, Image 2: UK Headquarters, Images courtesy of YNAP