Aug 3, 2017
Yoox Net-a-Porter CEO dreams of selling Ferraris online one day
Aug 3, 2017
Online luxury retailer Yoox Net-a-Porter (YNAP) is open to partnerships in new markets, says its CEO Federico Marchetti, whose ultimate dream would be to sell Ferrari cars online.
YNAP, which has four different websites selling clothes, bags and accessories and runs online flagship stores for famous fashion brands such as Armani and Valentino, has set a goal to increase revenue annually by 17-20 percent.
"The model we chose is to go independently, fully owned and by ourselves (but) we are open to evaluating options for different markets," Marchetti told Reuters on Wednesday.
Asked about any ongoing talks with potential partners, the CEO declined to comment but said the group's business "is a business of partnerships and collaborations."
Last year YNAP struck a 130 million euro ($154 million) joint venture deal with Dubai-based billionaire Mohamed Alabbar for an online luxury retail business in the Middle East, to tap high spenders in the region.
China is among the group's fastest growing markets and Marchetti said earlier on Wednesday that the group would "keep all options open" in the region.
He declined to comment on recent market speculation that Chinese e-commerce giant Alibaba might be interested in a partnership, which sent YNAP shares surging in late June.
YNAP has been present in China since 2010 with its Yoox.com website and sales in the Asia Pacific region, which account for just over 17 percent of group revenues, jumped 32 percent in the first half of this year at constant exchange rates.
On Wednesday the online retailer said core profit (EBITDA) margins would "slightly increase" this year after reporting a 19.5 percent rise in global revenues in the first six months of the year.
It also announced a multi-year agreement with Ferrari for a new online store that will sell Ferrari merchandise, but not its cars.
"My personal dream, though it is nothing we have discussed, is to one day to sell Ferrari cars online," Marchetti said, adding that he had pursued a deal with the famous Italian car maker for many years.
The group has recently been adding new items to its top-end range of goods, such as luxury watches worth more than 100,000 euros. It is counting heavily on a high-spending client base, with 2 percent of its customers providing 40 percent of the group's revenues.
"I really see the sky as the limit," Marchetti said.
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