In the efforts to grow and expand e-commerce business, PPR has formed a joint venture with Yoox SpA reported WWD.com. In the new venture, the French luxury group owns 51 percent, while Yoox owns 49. The new partners signed a nonbinding memorandum of understanding about Yoox handling the online sales of some of PPR’s brands.
Specifically, the Italian e-tailer will manage monobrand online stores in collaboration with PPR brands that include: Yves Saint Laurent, Bottega Veneta, Alexander McQueen, Balenciaga and Sergio Rossi. The Bottega Veneta and Sergio Rossi online stores will be the first to launch by the end of 2012. Each online presence will be operating globally, with China to be included by the end of 2013. Brands will still have full control of its online store, managing product assortment, editorial content, art direction and digital communication.
“E-business is a strategic priority for the group. PPR’s mission is to be the engine behind all our brands so that they each fully realize the potential for organic growth that they all enjoy. This joint venture will allow PPR to generate synergies and shared resources available to our brands through best-in-class e-commerce expertise,” said François-Henri Pinault, chairman and chief executive officer of PPR.
According to WWD, PPR e-Business vice president Federico Barbieri acknowledged the relevance of “innovative and original solutions to create real online luxury experiences for the customers of our brands, instead of having just good e-commerce stores.”
The luxury group may include other brands into the joint brand in the future. In seven years, PPR and Yoox will have the right to exercise call and put options, respectively, for the Yoox stake in the joint venture.