Yoox Net-a-porter’s China Joint Venture With Alibaba to End
LONDON — Fengmao, the China joint venture between Alibaba and Yoox Net-a-Porter, will be terminated soon, according to an internal memo seen by WWD. It was sent by Yating Wu, chief executive officer of Fengmao, to employees on Thursday night.
The dissolution of the joint venture is part of YNAP’s plan to exit China and focus on core, more profitable geographies. This move may also be related to Richemont’s intention to sell YNAP and streamline its operations.
In a challenging environment for luxury e-commerce, YNAP’s sales declined by 14 percent in fiscal 2024. The joint venture with Alibaba aimed to boost YNAP’s presence in the Chinese luxury market, but changes in the sector have altered the landscape.
Alibaba’s struggle to maintain post-pandemic growth, combined with evolving consumer behaviors in China, has led to a shift in the luxury e-commerce space. Other platforms like Xiaohongshu and JD.com have emerged as strong competitors, influencing the decisions of key players in the industry.
As YNAP prepares to exit China and potentially change ownership, the dynamics of luxury e-commerce in the region continue to evolve. The partnership between Yoox Net-a-Porter and Alibaba marked a significant moment in the sector’s history, but shifting market conditions are prompting strategic adjustments.
The termination of the Fengmao joint venture underscores the intricate and rapidly changing nature of the luxury e-commerce industry. With multiple players vying for market share and consumers seeking diverse shopping experiences, companies must adapt their strategies to remain relevant in this dynamic landscape.
