The Yoox Net-A-Porter Group [IRDX RNAP] said sales from mobile for the first time made up more than half of its sales during the 2017 financial year, with 96% of Cyber Monday sales taking place via the devices. It said that its native apps achieved “outstanding results” during the year. The Net-A-Porter app stood out for its high levels of engagement with customers.
The group also outlined a new service available to the third-party brands whose websites it operates that will give them both a single view of their customers and of inventory.
The update came as the pureplay retail group reported revenues of more than €2bn euros in its latest financial year – 16% up on the previous year.
The retail group saw revenues rise to €2.1bn (£1.9bn), up by 16.9% from €1.9bn (£1.7bn) in 2016. It also welcomed more than 840m visits to its websites and took more than 9.5m orders in 2017 from 3.1m active customers. Average order values fell to €328 (£291) from €334 (£297). However, in the fourth quarter, revenues grew more slowly, by 13.2% to £575.1m, after being hit by temporarily lower product availability on The Outlet following changes to its logistics operations.
Multibrand in-season sales accounted for 51% of the group’s sales, and grew by 11.9% compared to the previous year, while off-season sales made up 37.8% of group sales, growing by 13.3% on last time. Online flagship stores run for third-party brands accounted for 10.4% of group sales, (+5.9%). The UK accounted for 13.7% of sales, Italy for 6.8% and North America for 30.3%.
Chief executive Federico Marchetti said: “We’ve had a very good year. Performance in the fourth quarter was strong across the business. Net-A-Porter, Mr Porter and Yoox did particularly well. The Outnet’s revenues were affected for a short period by the migration of its logistics centres. This is behind us now and product availability has been fully restored.”
The group’s retail brands include Net-A-Porter and Mr Porter, Top150 retailers in IRUK Top500 research, and Yoox, a Top350 retailer. During the year Mr Porter launched its own brand of wardrobe essentials, while the Alaïa brand chose Net-A-Porter as an exclusive online retail partner.
New service launches included a personal shopping service for EIPs (extremely important people), enabling shoppers to try their online orders while the delivery driver waits. It was launched in London and subsequently rolled out to New York and Hong Kong.
Alongside those brands, the group also runs ecommerce websites for upmarket fashion and accessories brands. New partnerships in 2017 included with Ferrari and Isabel Marant. The group worked with Valentino to launch a new Next Era omnichannel business model that will be launched in 2018. The new approach will enable third-party brands to offer upgraded delivery services offering products from a single view of inventory that will cover the YNAP group’s global logistics network as well as brands’ own shops and warehouses. It will also enable them to have a single view of their customers via the YNAP Group’s technology.
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- Guy Aroch, Image courtesy of the Yoox Net-A-Porter Group