PPR and Yoox collaborate for online venture

French luxury group PPR has confirmed a joint-venture with online Italian fashion retailer Yoox dedicated to managing mono-brand online stores for several of PPR luxury brands. The new joint-venture company will be incorporated in Italy and is

51 percent owned by PPR and 49 percent by Yoox and will operate worldwide.

The first of the single-branded shops to launch will be Sergio Rossi and Bottega Veneta, which will launch towards the end of 2012. This will then be followed by Yves Saint Laurent, Alexander McQueen and Balenciaga. All digital stores will operate globally, including in China, by the end of 2013. PPR have also added that in the future it may decide to involve other brands in the joint-venture.

As part of their overall strategy, the ultimate goal is to enhance the existing e-commerce websites of PPR luxury brands and accelerate the development of their global digital presence to offer an exclusive online shopping experience to customers worldwide. Each PPR brand will be in full control of its online store and will be in charge of product assortment, editorial content, art direction and digital communication.

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.

“This joint-venture will allow PPR to generate synergies and shared resources available to our brands through best-in-class e-commerce expertise. And with this strategic partnership with YOOX Group, we invest in key skills essential to grow our business in the future.”

PPR e-Business Vice President Federico Barbieri added: “Because our brands are global, we need online flagship stores to be accessible all over the world. It is no longer a question of ‘when’, but rather ‘how’ we embrace the digital space through innovative and original solutions to create real online luxury experiences for the customers of our brands, instead of having just good e-commerce stores.”

The joint-venture will be fully consolidated by PPR and will reward Yoox for the services offered and the activities carried out on a revenue-share basis. After seven years of operations, PPR and Yoox Group will have the right to exercise call and put options respectively for the Yoox stake in the joint-venture.

Image: Bottega Veneta Cruise 2012/2013