Richemont separates from Yoox Net-a-Porter, Farfetch expands – Explained and Analyzed
After months of discussions, the Swiss luxury group Richemont has decided to separate from part of the Yoox Net-a-Porter e-commerce group in favor of Farfetch, which is taking the opportunity to acquire 47.5% of it while that the Emirati businessman, Mohamed Alabbar, acquires 3.2%.
The luxury e-commerce sector is experiencing a revolution where the cards are redistributed in favor of Farfetch, which seems unstoppable. It is clear that this agreement leaves YNAP without majority shareholders, which raises questions about the direction that the platform will take in the months to come.
But then why this decision on the part of the Richemont group? Indeed, YNAP was not profitable and only lowered the overall value of the group. A decision which therefore comes from pressure from shareholders who are looking for a better valuation of the group; which, except for YNAP, is recording very good results with its other houses.