News just in confirms our earlier post on the subject in May this year that in fact PPR and YOOX Group have announced the signature of their joint-venture agreement. The newly created joint-venture company – 51% owned by PPR and 49% by YOOX Group will be incorporated in Italy and operate worldwide.
PPR has been incredibly clever with this agreement in our books. Remember the old saying “keep your enemies close”, well perhaps not enemies but competitors and it’s always big-picture thinking when a company head knows their business is either lacking in a key strategic area of the business then seeks out the best or one of the best in their field to either purchase or do business with. Well, In this case it is Yoox.com.
YOOX Group is the global Internet retailing partner for leading fashion and design brands. It has established itself amongst the market leaders with multi-brand online stores yoox.com, thecorner.com, shoescribe.com as well as with numerous mono-brand online stores, from armani.com to zegna.com, all “Powered by YOOX Group”. The Group has offices and operations in Europe, United States, Japan, China and Hong Kong and delivers to more than 100 countries worldwide. YOOX Group is listed on the Milan Stock Exchange as YOOX.MI.it’s about strengthening your weaknesses and looking at future opportunities… a little IP sharing wouldn’t you say?
Whilst the deal is different to Richemont Group’s purchase of Net-a-porter in mid 2010 as the larger percentage ownership stayed with the acquirer, (67% owned by Richemont) however Richemont wanted to increase their fashion offer and also, no doubt, learn more (and quickly) about the on-line offer. It was an appropriate addition to their stable and the Net-a-porter brand also has the opportunity to leverage off the world’s second largest luxury goods conglomerate in terms of operations, human resources… et al.
Luxury brands operating within the digital space was ‘once upon a time’ considered as a sin now François-Henri Pinault, Chairman and CEO of PPR, said: “E-business is a strategic priority for the Group. PPR’s mission is to be the engine behind all our brands so that they each fully realize the potential for organic growth that they all enjoy.”At the MO Down we can cross this one off the books but wait in anticipation for to see the joint venture in all it’s collaborative glory!
Image credit: www.yoox.com