Johann Rupert’s Richemont Cements Its Partnership With Farfetch And Alabbar To Advance The Digitalisation Of The Luxury Industry
Johann Rupert’s Richemont Cements Its Partnership With Farfetch And Alabbar To Advance The Digitalisation Of The Luxury Industry. Luxury goods company Richemont has sold half of its online retailer to Farfetch and Alabbar. FARFETCH and Alabbar are set to acquire a 47.5% and 3.2% stake, respectively, in YOOX NET-A-PORTER (“YNAP”), making YNAP a neutral platform with no controlling shareholder.
YNAP is set to adopt FARFETCH Platform Solutions in order to advance growth and shift towards a hybrid business model. Richemont Maisons will adopt FARFETCH Platform Solutions to advance the realisation of their Luxury New Retail (“LNR”) vision. Richemont Maisons is also set to open e-concessions on the FARFETCH Marketplace.
Johann Rupert, Chairman of Richemont, said:“Today’s announcement is a significant step towards the realisation of a dream I first voiced in 2015 of building an independent, neutral online platform for the luxury industry that would be highly attractive to both luxury brands and their discerning clientele. We knew back then that if we wished to control our own destiny and protect the uniqueness of the luxury industry as it was digitalised, we would need to collaborate as the task was too big to undertake on our own.”
He continued to say, “FARFETCH’s sophisticated technology will enable Richemont Maisons to benefit from the best route to market and realise their Luxury New Retail vision, while implementing a hybrid model at YNAP will greatly enhance its prospects. We have adjusted YNAP’s valuation to bring it in line with today’s market environment and will receive, in exchange, shares in FARFETCH, further aligning our interests. As a supportive shareholder and a Luxury New Retail partner, we will look to build the perfect platform for the future, enabling the luxury industry to flourish in an increasingly digital economy. I am truly delighted to partner with José Neves and Mohamed Alabbar. I would also like to offer a particular thanks to my son Anton, whose technology prowess and creative thinking have been integral in building this partnership, and, of course, to my colleagues for their relentless work over the last two years that has enabled Richemont to reach this inflection point in its transformational journey towards Luxury New Retail.”
José Neves, FARFETCH Founder, Chairman and CEO, said: “Today, FARFETCH and Richemont advanced significantly our Luxury New Retail vision for the digitization of Luxury. This significant partnership unequivocally establishes FARFETCH as a pre-eminent global platform for luxury. Our FARFETCH Platform Solutions’ capabilities are perfectly tailored to the Luxury industry, and that has now been recognised by Richemont’s Maisons as well as pioneering luxury e-tailer YNAP, who will all be able to elevate the digital experiences of their global customers, by leveraging FARFETCH Platform Solutions. The launch of Richemont Maison’s e-concessions on the FARFETCH Marketplace is a step change in our strategy for hard luxury, which represents more than 20% of the Luxury industry globally, but just 3% of FARFETCH sales, and is an area where we see much stronger customer demand relative to the supply we have had to date.”
“Last but not least, we are excited to acquire 47.5% of YNAP and partner with Richemont in YNAP’s transformation into a hybrid business model which we believe will drive strong growth and profitability for YNAP. This investment and work we will do with FARFETCH Platform Solutions for YNAP will pave the way to a potential acquisition by FARFETCH, which would create a complementary portfolio of iconic luxury destinations, appealing to different demographics, price points and regions.I’d like to thank Johann Rupert and Anton Rupert for their vision and look forward to working more closely with them.” Neves added.
Mohamed Alabbar, Founder and owner of Symphony Global, said: “I am delighted at the opportunity to build further on my long-standing relationship with Richemont and YNAP, and participate, this time, in the realisation of their Luxury New Retail vision. YNAP is one of the most coveted global luxury shopping destinations and the partnership with FARFETCH, by continuing to develop YNAP’s marketplace business, will further enhance the experience for its brand partners and discerning clientele. I am also confident that our deep understanding of the Middle Eastern luxury market, with its tech-savvy and influential customers, will be of great value to YNAP going forward.”
