📉 11 Years in China Ends
Net-a-Porter will shut down operations in China by March 20. The luxury e-commerce giant entered the market in 2013. It operated via a joint venture with Alibaba, called Fengmao, since 2018. Returns and exchanges will be available until April 22.
📦 Alibaba Partnership Fades
Net-a-Porter partnered with Alibaba to grow in China. The move allowed it to leverage Alibaba’s digital ecosystem. Despite this, it struggled against local competitors like JD.com and Tmall. Now, it's shifting focus to core markets with higher profitability.
Richemont has been looking to offload YNAP. In October, Mytheresa’s parent company, MYT Netherlands, signed a deal to acquire it. The transaction is set to close in the first half of the year. Net-a-Porter's China exit aligns with this restructuring.
🌍 A Shift in Luxury E-Commerce
China is the world’s biggest luxury market. However, foreign e-tailers struggle against local platforms. Net-a-Porter’s exit signals a shift in global luxury e-commerce. Brands may focus on direct sales and regional strategies moving forward.
Is China becoming too tough for Western luxury e-tailers?
