(Author : Prinitha Govender)
The online fashion retailer has been investing heavily in new mobile technology with the goal of becoming a mobile-only business, and expects smartphone purchases to account for a third of sales by 2020.
Net-A-Porter has been focusing on new shopping apps as well as quicker delivery to online shoppers in key markets. Since its merger with Milan-based online fashion retailer Yoox in 2015, the company’s chief executive Federico Marchetti, has been technology focused, and added new services like seaplanes to deliver rush orders in the Hamptons, with plans to offer same-day delivery in its major markets including Dubai, Tokyo and Milan.
The British online retailer also recently launched its shopping television app with Apple TV, as it looks to ramp up growth in China and the Middle East.
“One of my biggest objectives is to transform the company into a mobile-only company,” says Marchetti, explaining that mobile-Commerce is a “new luxury conglomerate” of the digital era.
And he has reason to say something like that. The former chief executive of Yoox expects that business from smartphones and tablets will eventually account for three quarters of total sales by the end of 2020, with research indicating that it’s less than half today. With mobile-Commerce becoming increasingly popular, shoppers are using mobile devices to spend big. Net-A-Porter says that its 2.6 million customers fork out an average of US$366 per order on a mobile device.
The company has outlaid plans for net revenue growth of 17 percent to 20 percent every year through to 2020. Yoox Net-A-Porter Group is optimistic about its goals despite the global luxury business becoming increasingly competitive online.
The online retailer generated US$1.88 billion in sales in the 12 months till March 2016, while delivering to customers in over 180 countries. The fashion giant says that over a third of its annual revenue is generated thanks to about two percent of its customer base.
Launched in 2000, Net-A-Porter has established itself as a global leader in the online fashion retail space and a pioneer for innovation. It sees 6 million monthly visitors via its global multichannel ecosystem, including The EDIT digital magazine, PORTER magazine, the social shopping app, THE NET SET and net-a-porter.com and offers an exemplary shopping experience across desktop, mobile and tablet devices.