Yoox Net-a-Porter to reportedly shutter China operations

Luxury fashion e-tailer Yoox Net-a-Porter (YNAP) is believed to be in the process of closing up shop in China as it looks to put more emphasis on markets it deems more profitable.

The decision was confirmed by a spokesperson for the retailer’s parent company Richemont, who told the Financial Times that the move came as part of a wider global plan that is aimed at “focusing investments and resources on its core and more profitable geographies”.

YNAP had first stepped into China in 2013 and later entered a joint venture with the country’s marketplace giant Alibaba in 2018. This was then followed by the retailer’s launch on Tmall Luxury Pavilion, with 130 luxury brands added to the Chinese shopping site.

According to a source for the media outlet, however, this partnership will now be liquidated.

The report gives insight into the continued struggle faced by Richemont over its interest in YNAP, with the luxury group having previously attempted to offload its stake in the retailer amid falling profits and rising losses.

The Swiss conglomerate has been seeking a buyer for YNAP since a former deal to sell its 47.5 percent stake to Farfetch fell through in light of Coupang’s acquisition of the British rival last year.

Its problems surrounding YNAP had already been longstanding, however, with Richemont facing heightened scrutiny from investors wanting the firm to offload the struggling e-tailer.