Bazaar can exclusively announce that the Yoox Net-a-Porter Group (YNAP) has partnered with Mohamed Alabbar of Symphony Investments in a bid to create an unprecedented luxury e-commerce platform.
It is reported that Alabbar will own a 40% stake in the venture, which will see his extensive knowledge of the region's luxury sector and consumer combined with YNAP's revolutionary technologistics capabilities and e-comm expertise. The aim, we're told, is to create "the Middle East’s undisputed leader for online luxury retail."
The partnership will see Mohamed Alabbar focus his entire online luxury retail acitivity in the region exlcusively through the new joint venture.
The merger will allow YNAP to offer same-day delivery service (which YNAP's CEO, Federico Marchetti, hinted at last month), which is undoubtedly music to the ears of the region's fashion-hungry style set, through the establishment of a Dubai-based arm of the company which is set to open by the end of 2017. Yoox and The Outnet will launch in 2018, with Net-a-Porter and Mr Porter by 2019.
In April it was announced that Alabbar Enterprises had purchased a four per cent stake in YNAP, leading many to speculate a wider partnership was in the works, which today's announcement confirms.
The unprecedented partnership, which will operate across the GCC, will see the companies overhaul the luxury e-commerce market within the region, which is one of the fastest growing luxury markets globally. According to a study conducted by Bain & Company in 2015, the Middle East was responsible for roughly 3% of global luxury consumption that year, and has one of the highest GDP per capita worldwide according to YNAP. The joint venture highlights the relatively untapped potential of the region and it's technologically apt residents.
"The Middle East is one of the fastest growing global centres for luxury retail. The region also has a significant population of over 200 million young people who are tech-savvy and influence luxury retail decisions. With this joint venture to be based in Dubai, a global business & leisure hub, we are pioneering a never-before online luxury retail experience that integrates luxury with techno-logistics. It will redefine the retail sector, and create a brand-new way to access the world’s high-end brands brought by YNAP. A ground-breaking initiative, this joint venture will serve as the go-to online destination for luxury retail and set new industry benchmarks in customer service, speed of delivery and diversity of choice,” Mohamed Alabbar said in a statement.
Marchetti agreed, adding, "We are thrilled by the potential of the Middle East market: combining YNAP and Mohamed Alabbar’s strengths, we look forward to giving shoppers in the region access to a fantastic luxury assortment with our unparalleled service and content."