Swiss luxury retailer Richemont has announced it will team up with Alibaba to bring Yoox Net-a-Porter (YNAP), an online retailer recently acquired by Richemont, to Chinese consumers via two new mobile apps. The move has marked a strategic move from the two players into China's e-commerce market.
Of the partnership, Alibaba CEO Daniel Zhang said that Chinese consumers are forecast to account for nearly half of the global luxury market by 2025, "and through this partnership, Alibaba and YNAP will be even better positioned to capture this compelling market opportunity".
YNAP stated that the partnership would lead to the development of two mobile applications for its subsidiaries Net-a-Porter and men's fashion specialist Mr Porter.
The apps will be launched on Alibaba's Tmall Luxury Pavilion, the tech giant's luxury e-commerce platform.
Visit Innovation Enterprise's 2018 Mobile Disruptors Summit in San Francisco on December 5–6, 2018
The partnership will integrate Alibaba's technology infrastructure, marketing, payments, logistics and other technology support to the joint venture and will leverage YNAP's relationship with leading luxury brands in China.
Richemont chairperson Johann Rupert said: "Chinese customers at home and abroad are an increasingly important customer base for Richemont and for the broader luxury industry.
"Our digital offering in China is in its infancy and we believe that partnering with Alibaba will enable us to become a significant and sustainable online player in this market," Rupert added.
The two companies will also aim to explore future offerings to develop online and offline shopping experiences. The joint venture will initially focus on consumers in China but will look to extend to Chinese consumers traveling abroad, YNAP stated.