Ok it’s a big call, but it’s nice to see competitors coming together to create.
Luxury holding company, Richemont, who owns Net-a-Porter and now Yoox.com – which are due to merge – has invited their traditional competitors LVMH and Kering to join them in taking on Amazon.
Richemont’s chairman, Johann Rupert announced this plan in his speech last week at the ‘Financial Times Business of Luxury Summit’ in Monaco. Rupert says ‘we’re not big enough, what I said to them was they can come in and get equity in the company (if they commit their brands to sell via the platform’.
To put the deal in perspective Yoox and Net-a-Porter combined sales are about US$1.3B; where as Amazon last year reported $89B in revenue. Yes, Amazon isn’t just luxury goods but it’s understood to have a very strong luxury watches and jewellery business.
The vision for Yoox/Net-a-porter and the backing of Richemont’s competitors is to make it ‘the dominant neutral platform for the luxury-goods industry’.
Can’t wait to see how this progresses.