Kering decides to go it alone in ecommerce, drops Yoox Net-a-Porter deal
Luxury giant Kering has announced that it is ending its “highly successful and fruitful” seven-year partnership with Yoox Net-a-Porter (YNAP). Instead, the company will develop its own ecommerce platforms, where it will hawk its high-class brands, including Gucci, Saint Laurent, and Balenciaga. The company is looking to have these sites operational by 2020.
Kering’s share price has appreciated by 3% over the past month
Source Yahoo Finance
According to Kering’s chief client and digital officer, Gregory Boutte: “These exciting new initiatives have been designed to meet, and exceed, the needs of our [brands’] customers and to ensure we continue to offer them an exceptional experience across all channels in a fast-changing global market. These opportunities have been made possible by the experience and know-how that Kering has gained over the years, notably through its successful joint venture with YNAP. We will continue to work with them post-transition and to enjoy a fruitful relationship.”
The company is not taking it slowly, given the short timeline it’s put in place. Kering said it has created an internal data science team to improve customer service, and is creating a China-based digital team. The China team will be responsible for adapting digital practises for the country, and sharing Chinese innovations with other areas of the business.
In the first half of 2018, just 6% of Kering’s sales came from its ecommerce channels. However, it’s the fastest growing segment in the business – and Kering is obviously looking to boost it further.
Dominion holds Kering in its Global Trends Luxury Fund.
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