Specialist
Former C-level executive at Yoox Net-A-Porter Group SpA
Agenda
- Coronavirus crisis demand dynamics for online pure play luxury retailers by region
- Supply-side challenges through 2020
- Competitive analysis – Farfetch vs Yoox Net-A-Porter
- Cost dynamics and margin drivers
Questions
1.
What are your views on the impacts of the coronavirus pandemic on online luxury sales? How are online luxury sales likely to play out throughout 2020-21?
2.
Could you give us a sense of the level of online shift that has been witnessed in the market from the offline channel? What are the expected penetration levels and how do you think those are likely to continue? You said that the long-term shift to online has accelerated. What is the online penetration in luxury due to the coronavirus pandemic and do you think that will persist once stores reopen?
3.
I believe the online penetration target Farfetch has set is 25% by 2025. Is that achievable?
4.
Who do you think is in a better position to benefit from the shift from offline to online, Farfetch or Yoox Net-A-Porter?
5.
Are you expecting any potential meaningful overhang in YNAP’s inventory, given the current environment?
6.
Do you anticipate that YNAP will prioritise its relationships with brands against clearing inventory via promotions?
7.
I’m surprised that you say that Farfetch is more aggressive with pricing. The third-party model means that brands typically retain pricing power within Farfetch’s platform. I would have expected that pricing would be more of an issue for YNAP than it is for Farfetch, given that YNAP carries the inventory risk, while Farfetch has an inventory-light model. What are your thoughts on that?
8.
You mentioned that some of the boutiques could become insolvent. What reduction in number of boutique partners are you expecting for Farfetch and does that pose a threat to its current model?
9.
Do you anticipate that brands will prioritise their D2C model over the third-party online model? Could there potentially be inventory constraints in the back end of 2020 for either Yoox Net-A-Porter or Farfetch?
10.
How serious are the current distribution challenges from a supply chain perspective? Are there any differences between YNAP and Farfetch, Farfetch having an extremely fragmented distribution channel vs YNAP which has a fairly concentrated distribution network?
11.
I know that the YNAP website is still stating that orders may take longer to reach the customer than usual. Do you think that is an indication of distribution challenges at play?
12.
What are your thoughts on both brands’ growth opportunity in China due to the repatriation of the customer into the country? Could you outline the merits and drawbacks of each partnership in the region? Who is better positioned to pick up on the repatriated spend due to reduced travel?
13.
Do you think Farfetch potentially has access to a broader customer base or luxury customer through the JD partnership?
14.
What factors lead to success in capturing market share in China?
15.
Do you think the coronavirus pandemic will have a profitability impact for Farfetch and YNAP? Are there any factors based on prices?
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