Luxury goods giant Richemont, the world’s second-largest luxury goods company, announced that its e-commerce platform Yoox Net-a-Porter (YNAP) will officially close all its online platforms in China on March 20. This includes its Tmall stores, WeChat mini program, Xiaohongshu (Little Red Book) and Douyin flagship stores, as well as the company’s official website and app.
Moreover, YNAP has also confirmed that after-sales services will be terminated on April 22, signaling its complete withdrawal from the Chinese market.
YNAP was formed from the merger of Net-A-Porter and Yoox, both globally renowned luxury e-commerce platforms. After being acquired by Richemont in 2015, it became the largest luxury goods e-commerce platform globally, with revenue reaching 2.1 billion euros in 2017.
Net-A-Porter was founded in 2000 by British fashion editor Natalie Massenet and was acquired by the Swiss luxury powerhouse Richemont in 2010. Richemont’s luxury brands include Vacheron Constantin, Cartier, and more.
YNAP officially entered the Chinese market in 2013 and established a joint venture, Fengmao Trading, with Alibaba Group in 2018. This joint venture operated the Chinese business of Net-A-Porter and Mr Porter and set up shop on Tmall, providing luxury online shopping services to Chinese consumers.
In June 2024, the CEO of Fengmao Trading announced to employees that the company would dissolve and stop placing orders with brands starting from the Spring/Summer 2025 collection.
The continuous economic downturn in China has impacted the luxury goods industry, leading foreign companies like YNAP to exit the Chinese market one after another. Digital Luxury Group had previously predicted that the Chinese luxury goods market was expected to shrink by 15% in 2024.
On January 28, global luxury goods conglomerate LVMH reported a slight 1% year-on-year growth in revenue for 2024, exceeding expectations. Revenue increased in Europe, the United States, and Japan, while the Asia region (excluding Japan) saw a decline of approximately 11%, which includes China.