Retail in Asia

In Trends

Why luxury retailers have finally given in to digital

Richemont and Yoox Group announced details of their deal on Tuesday, which will create one of the leading online luxury fashion retailers with combined 2014 sales of EUR1.3 billion (USD1.4 billion), trumping interest from online giant Amazon.

The group behind Cartier and Van Cleef & Arpels jewellery brands, Richemont, said the combined entity will launch a capital increase of up to EUR200 million upon completion of the deal. Richemont will hold a 50 percent stake in the new company, which will be called Yoox Net-A-Porter Group.

The deal comes amid increased interest and competition in the online luxury space, with the likes of e-commerce retailer Farfetch earning a whopping USD1 billion valuation at the start of the month.
 

(Source: CNBC)