Yoox Net-a-Porter to harness power of messaging
Yoox Net-a-Porter (YNAP) established itself as an early leader in the fashion-by-ecommerce industry. But as more and more fashion brands see the value of digital, and big online retailers like Amazon start focusing on high end apparel and accessories, it runs the risk of seeing that lead erode. Its latest innovation will help it protect its coveted top spot by leveraging popular messenger service WhatsApp in the battle for the online fashion market.
YNAP already uses WhatsApp to talk to its top-paying clients, but now it will let them buy directly through the messenger service. This is an intuitive move from the online fashion giant, and highlights how slow the industry has been to adopt these powerful platforms.
WeChat, in China, for example, has over 700 million users, a large proportion of whom have their bank details attached to the app. Yet digital researcher L2 claims that, while 92% of global luxury brands routinely use messenger services to communicate with clients, only a tiny minority actually sell through these platforms.
Choosing to use a messenger service is particularly sensible for YNAP for two reasons:
The first is that YNAP generates around 40% of its revenue from just 2% of its clients. The company already speaks to these “Extremely Important People” (EIPs) via the messenger service, so it makes sense to deepen that relationship by offering them the option to purchase through it too.
The second reason is that YNAP’s mobile platforms already outperform its desktop customers. On average, its mobile browsing consumers place over twice the number of orders than their more stationary counterparts. Embracing sales through a mobile app is an excellent strategy to capitalize on that factor.
Dominion holds Yoox Net-a-Porter in its Global Trends Ecommerce Fund.
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