Mr Porter is to launch an own label as part of Yoox Net-a-Porter Group’s five-year strategy to outperform the global luxury market.
Fashion Forward to 2020 - Yoox Net a Porter Group’s strategy
The merged group is aiming to grow annual net revenues by 17% to 20% at constant exchange rates, compared to annual forecast growth for the online luxury market of 15%. It also plans to increase adjusted EBITDA margin to a range of 11-13% from 8% in 2015 and reduce capital expenditure to 4-5% of net revenues by 2020 upon completion of its integration investments.
Mr P, Mr Porter’s own label, is set to launch in 2017 and will be exclusively sold through MrPorter.com. It will be positioned between contemporary and casual, comprising of wardrobe essentials, ready-to-wear, shoes and accessories.
Iris & Ink, The Outnet’s own label which was launched in September 2012, will launch on Yoox in autumn this year. The group is also planning to launch an own label for Yoox in 2017, distributed through both Yoox and The Outnet, with ‘made in Italy’ as its differentiating factor. YNAP is targeting own label sales to account for 10% of total off-price sales by 2020.
The plan to 2020 includes growth in the Middle East and the US, enhancing the personalised service through the likes of geo-localised editorial content and product recommendations, as well as the launch of fine jewellery and watches.
The group is also building the capability for global visibility of stock anywhere through the world and a fully interconnected logistics network built around central hubs and regional distribution centres.
Key milestones include:
- Q4 2016: Roll-out of new order management system on the former Yoox Group’s online stores;
- Q4 2016: Consolidation of Hong Kong distribution centre;
- 2017: Expansion of the Bologna facility to become the hub for the whole off-season business, Consolidation of US off-season business at YOOX’s facility, launch of new distribution centre in Dubai;
- Q3 2017: The first online flagship store to launch on new core ecommerce platform;
- H2 2017: Completion of convergence and omni-stock programme for the off-season business;
- 2018: Roll-out of new order management system on the former Net-A-Porter Group’s online stores, completion of convergence and omni-stock programme for the in-season business with opening of new in-season hub in Italy;
- 2018: Launch of new in-season hub in Italy, upgrade of APAC distribution centre network;
- 2019: Launch of new off-season distribution centre in the US.
Regarding the potential impact of Brexit, YNAP said it expects the effect of depreciation of sterling against the euro on profitability to be neutral in 2016 and onwards thanks to well-balanced sterling-denominated costs and revenues.
“YNAP remains confident in the strengths of its brands: the group expects to outperform its market thanks to its highly diversified geographical spread and well-balanced business mix,” it said.
It underlined its commitment to its presence in the UK, pointing to an expansion of the London headquarters and new staff hires.