Net-a-Porter to exit China by 20 March
Net-a-Porter’s China joint venture, Fengmao, a partnership between Alibaba and Yoox Net-a-Porter (YNAP), will be terminated on 20 March.
From that date, customers will no longer be able to place orders through Net-a-Porter’s online channels in China, including e-tail platform Tmall, WeChat Mini-program, social networking and e-commerce platform Xiaohongshu, and shirt-video social platform Douyin. After-sales services will continue until 22 April.
The exit has been in motion since last summer, when former Fengmao CEO Yating Wu, now leading Richemont Southeast Asia and Oceania, informed employees. Since then, Net-a-Porter China has been offering significant discounts to clear inventory. This move is part of YNAP’s broader strategy to exit China and focus on core, more profitable markets.
Another likely reason for the closure is an effort by Richemont – majority owner of YNAP – to streamline its business before completing the sale of YNAP to Mytheresa, expected in the first half of 2025. Richemont is selling YNAP with a cash balance of €555 million (£461 million) and no financial debt in exchange for shares in Mytheresa. The Swiss luxury conglomerate will also provide a six-year €100 million (£83 million) revolving credit facility to support YNAP’s operations. In return, Richemont will receive a 33% stake in Mytheresa and the right to appoint a board member and an observer.
Following the acquisition, Mytheresa’s holding company will be renamed LuxExperience and trade under the ticker “LUXE” on the New York Stock Exchange. Mytheresa will continue operating as a retail brand within the group, aiming to establish itself as a leading global digital luxury platform.
Net-a-Porter entered China in 2013, appointing Claire Chung as general manager in 2015. That year, its off-season platform, The Outnet, exited due to intense competition. In 2018, Richemont partnered with Alibaba to expand YNAP’s presence in China through Fengmao. The following year, Net-a-Porter launched its Tmall Luxury Pavilion flagship, carrying over 130 brands. Meanwhile, Alibaba sought to enhance its fashion credibility and compete with JD.com, which had allied with Farfetch.
However, China’s e-commerce landscape has shifted dramatically. A government crackdown on tech giants in 2021 slowed digital retail growth in the market, and by 2023, Farfetch collapsed and was sold to Korean-owned Coupang for $500 million (£397 million). Meanwhile, Alibaba struggled to maintain dominance as physical luxury stores in China improved, and platforms like Xiaohongshu and JD.com gained traction.
Mytheresa, strengthening its China presence, launched a WeChat Mini Program in September, offering a curated luxury selection with personalised recommendations, live chat support, and secure checkout. Led by Greater China president Dede Chan Brignoli, Mytheresa aims to engage Chinese luxury consumers innovatively, marking a new chapter for the brand in the region.
