What: German e-commerce luxury player Mytheresa considers that the demises of Farfetch and Matchesfashion open all the more opportunities for them.

Why it is important: No business can be based on discounts, be it online or offline. Only service, experience and curation can make it and this is what Mytheresa wants to emphasize.

Mytheresa, a German luxury e-commerce platform, is positioning itself as a resilient contender in the luxury retail sector despite the broader industry's challenges. The New York-listed company, which saw its market value significantly drop from $2.3 billion at its 2021 IPO to $362.5 million, has nonetheless experienced a 30% increase in share price this year. CEO Michael Kliger attributes this performance to a market recognition of Mytheresa as a key player amidst ongoing industry consolidation.

The luxury e-commerce sector has seen notable struggles, with competitors like Farfetch being sold to avoid bankruptcy and Matchesfashion entering administration. In contrast, Mytheresa has maintained a strong stance, partly due to its focus on a wealthier, older customer base and a restrained approach to discounting, which preserves brand prestige and customer loyalty.

Mytheresa differentiates itself by offering exclusive products and experiences, such as a capsule collection with Dolce & Gabbana and pieces from Gucci’s new creative director, aiming to cater to clients with busy social and professional lives who spend significantly on luxury goods. Despite a loss in 2023, Mytheresa has seen a 15% increase in net sales to €230 million in the most recent quarter and reports consistently positive operating income, highlighting its sustainable business model amidst the sector's volatility.

Online retailer Mytheresa says it will benefit from luxury ecommerce implosion