What: Richemont is in “advanced” discussions to merge its YNAP platform with Farfetch, building on a neutral, industry-wide platform, built on the latest omnichannel retail technologies, to support the digitization of the luxury industry.

Why it is important: The merger would result in an acceleration of luxury e-commerce, making this part of the business even more difficult for department stores.

YNAP would leverage Farfetch Platform Solutions to support its ongoing transition to a hybrid business model, the Richemont brands would leverage Farfetch technology to accelerate their online developments and Richemont brands would join the Farfetch marketplace.

Richemont also reported a strong set of first half results, revealing the pent-up demand for luxury watches and jewelry during the pandemic. Richemont has also learned from its partnership with Alibaba. It was initially meant to promote the Net-a-porter and Mr Porter in the region – and to the traveling Chinese consumer – and has since expanded to include partners Artemis and Farfetch. Richemont gained a better understanding of Alibaba’s approach to digital marketing in China, including ‘shoppertainment,’ and of their operating model cantered around a network of Tmall partners.

Richemont, Farfetch in ‘Advanced’ Discussions to Merge Platforms