As Mytheresa signs an equity deal to acquire Yoox Net-a-Porter (YNAP) from Richemont, the Europe Luxury 2024 report looks at Mytheresa’s growth from a single boutique in Munich to one of Europe’s leading online luxury retailers.
The brand’s key differentiator is that it focusses on curation and exceptional customer service akin to the instore luxury experience but online. Range-wise, Mytheresa offers a curated edit of more than 200 established and emerging luxury brands catering to European consumers seeking a diverse yet refined luxury selection. It also seeks to leverage the quality and heritage of luxury goods, resonating with Europeans who appreciate timeless design and exceptional materials.
And it seeks to do all this with a seamless shopper experience using a user-friendly platform offering features such as personalised recommendations, size consultations and secure payment options.
Formerly owned by US retail giant Neiman Marcus, which went bankrupt in 2020, Mytheresa now operates as its own company, floating on the New York Stock Exchange in 2021, at the time valued at around $3bn. In 2023 it generated €700mn in revenues and €400mn in profits, with most of its sales coming from its strong foothold in Europe, where it operates specific sites in English, German, French, Italian and Spanish, as well as selling in all other markets. The company was also an early targetter of Asia and the Middle East with its Arabic website going live in 2015 and its Chinese site in 2016. It now operates sites in Arabic, Chinese and Korean.
Being focussed on digital savvy and younger shoppers, the company is, like many luxury brands, increasing its focus on sustainability. Working in partnership with Bucherer, Mytheresa offers certified pre-owned watches from prestigious brands, promoting circularity and extending product lifecycles within the European luxury market.
It is also increasingly highlights brands and products that use recycled and organic materials, while reducing packaging.
Going forward, Mytheresa is looking to complement its online presence with pop-up stores and flagship experiences, offering a blended shopping experience for shoppers both in Europe and further afield.
A relative minnow in the luxury market, Mytheresa polls relatively low numbers in the ConsumerX consumer survey. However, the numbers do show how the company is the preserve of younger shoppers, with 6.6% of Europe’s GenZ shoppers having bought something from the company at least once a year. It is also popular with Millennials with 8.7% of them having bought something at least once a year.
The low show for older shoppers reflects how the brand has chosen to concentrate not only on latest trend fashion, but also on online. Its target demographic is tech-savvy under 40s and its focus on online curation, recommendation and social media influencer marketing reflects this.
However, this focus is shifting. The opening of its kidswear brand, Mytheresa Kids, in 2020 seeks to target the upper end of the Millennial and lower end of GenX age groups who are parents to GenAlpha and younger children.
Similarly, the company has expanded into home décor and lifestyle products with the launch of its Mytheresa Life brand. This too targets an older demographic of homeowners.
This expansion into kidswear and homewares is a canny move, extending Mytheresa’s customer base, as well as bringing its existing clientele with the brand as they age, settle down into home ownership and have kids of their own.
This profile first appeared in the Europe Luxury Report 2024, which follows on from our Global Luxury Report 2024, it takes a deeper dive into consumer behaviour and attitudes in this region.
The report analyses the growth of European luxury retail and ecommerce that has plateaued, this however isn’t necessarily a sign of the market stalling, but more an indication it is evolving. The report uses the results of our ConsumerX data to analyse attitudes to what, why, where and how Europeans’ buy luxury goods.
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