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Luxury Market Shifts: Net-A-Porter Exits China, Major Acquisitions, and Leadership Reshuffles
Ivy Vu
- Fashion Blogger -
The global luxury and fashion industry is experiencing a wave of changes, from the exit of major players in key markets to significant acquisitions and executive shake-ups. Companies are repositioning their strategies to adapt to shifting consumer behaviors, economic pressures, and the evolving digital landscape.
The global luxury and fashion industry is experiencing a wave of changes, from the exit of major players in key markets to significant acquisitions and executive shake-ups. Companies are repositioning their strategies to adapt to shifting consumer behaviors, economic pressures, and the evolving digital landscape.
Net-A-Porter Withdraws from China
Net-A-Porter, one of the world’s leading luxury e-commerce platforms, will officially exit the Chinese market on March 20, 2024. The company will shut down all its online channels, including its Tmall flagship store, WeChat mini-program, Xiaohongshu, Douyin flagship store, official website, and mobile app. After-sales services will cease on April 22, marking the end of over a decade of operations in China.
Founded in 2000 by British fashion editor Natalie Massenet, Net-A-Porter became a global luxury e-commerce leader and was acquired by Richemont in 2010 for approximately £350 million. Richemont recently announced plans to sell 100% of Yoox Net-A-Porter (YNAP) to German luxury e-commerce platform Mytheresa, with the deal expected to close in the first half of 2025.
Richemont chairman Johann Rupert cited the inability of YNAP to foster deeper consumer engagement as a key reason for the divestment. “You need to know who your customer is to serve them better,” he stated, highlighting the limitations of a purely digital strategy.
Farfetch’s Struggles Continue
Another luxury e-commerce platform, Farfetch, has been grappling with financial difficulties. In December 2023, South Korean e-commerce giant Coupang acquired Farfetch’s business and assets, facilitating its privatization.
Richemont Restructures Leadership
Swiss luxury conglomerate Richemont has undertaken a major restructuring of its senior management. Van Cleef & Arpels CEO Catherine Rénier and Cartier CEO Louis Ferla have joined the Senior Executive Committee, bringing valuable industry insights. Additionally, Marie-Aude Stocker, Richemont’s Chief Human Resources Officer with 35 years of experience in beauty and luxury, has also been appointed to the committee.
Meanwhile, Richemont CEO Jérôme Lambert has stepped down from both the committee and the board as he transitions to CEO of Jaeger-LeCoultre. Boet Brinkgreve, CEO of the Haute Parfumerie & Beauty division, will also depart at the end of April.
Birkenstock Sees Strong UK Growth
German footwear brand Birkenstock has recorded impressive growth in the UK market, driven by both wholesale and retail expansion. In the fiscal year ending September 30, 2024, the brand’s UK revenue reached £59.8 million, with pre-tax profits rising to £1.8 million. This marks a significant increase from £34.5 million in 2022 and £14.7 million in 2020, demonstrating the brand’s consistent upward trajectory.
De Beers CEO Steps Down Amid Strategic Changes
Céline Assimon, CEO of De Beers Jewellers, will leave her position at the end of February 2024. Since 2020, she has led the brand’s transformation into a design-driven luxury house, expanding its product range and global presence.
Her departure coincides with a strategic shift by parent company Anglo American, which plans to sell or spin off De Beers to streamline operations. The diamond industry faces mounting challenges, including declining rough diamond prices and the rising popularity of lab-grown diamonds.
Bluestar Alliance Expands Luxury Streetwear Portfolio with Palm Angels Acquisition
Luxury brand management firm Bluestar Alliance has acquired high-end streetwear label Palm Angels, reinforcing its position in the luxury streetwear market. Palm Angels, founded in 2011 by Francesco Ragazzi, evolved from a photography project documenting Los Angeles skate culture into a full-fledged fashion brand. Known for blending American skate culture with Italian craftsmanship, the brand has collaborated with Moncler and Barbour.
This acquisition follows Bluestar Alliance’s purchase of Off-White from LVMH, solidifying its foothold in high-end street fashion. The company now manages brands such as Scotch & Soda, Hurley, Bebe, and English Laundry, overseeing over 500 retail stores globally.
Staud Seeks New Investors
Los Angeles-based contemporary fashion brand Staud is in search of new investors to fuel its next stage of growth. Founded in 2015 by Sarah Staudinger and George Augusto, the brand is known for its blend of accessible luxury and European aesthetics, with products ranging from $149 to $1,295.
Staud recently introduced its new athleisure line, Staud Sport, focusing on a fashion-meets-function approach rather than traditional performance wear. The brand’s search for investment suggests plans for further expansion in product offerings and global market reach.
Moncler Group Revenue Surpasses €3.1 Billion
Italian luxury powerhouse Moncler Group reported a 4% revenue increase in 2024, surpassing €3.1 billion. Moncler brand sales rose by 5%, while Stone Island saw a 10% acceleration in Q4.
Asia was the strongest-performing region, growing 7% to €1.38 billion, with China achieving double-digit growth. The Americas saw a modest 2% increase to €379 million, while the EMEA region grew 4% to €949.3 million. Net profit rose 5% to €639.6 million, up from €611.9 million in 2023.
L’Oréal’s Luxury Skincare Brand Shihyo Shuts Down
L’Oréal’s luxury skincare brand Shihyo has ceased operations, with all user data securely deleted. The brand had already exited the Chinese market in January, closing its Tmall Global store. Currently, Shihyo is no longer available on Douyin, Xiaohongshu, or JD.com.
Shihyo was launched in 2022 as L’Oréal’s first joint-venture skincare brand with Samsung Group, targeting the high-end Korean beauty market.
Steve Madden Acquires Kurt Geiger for £289 Million
U.S. footwear company Steve Madden has acquired British shoe and accessories retailer Kurt Geiger for approximately £289 million. Kurt Geiger’s portfolio includes Kurt Geiger London, KG Kurt Geiger, and Carvela, with a presence in luxury department stores such as Harrods and Selfridges.
Steve Madden CEO Edward Rosenfeld emphasized that the acquisition aligns with the company’s global expansion strategy, particularly in international markets, accessories, and direct-to-consumer channels.
Crocs Reports Strong Q4 Performance
Crocs outperformed market expectations in Q4 2024, reporting an adjusted net income of $146.2 million, above forecasts of $133.7 million. Earnings per share were $2.52, surpassing the projected $2.26, while sales grew 3.1% to $989.8 million, exceeding expectations of $962 million.
For the full year, revenue rose 3.5% to $4.1 billion, with diluted earnings per share increasing 24.2% to $15.88. CEO Andrew Rees attributed the strong performance to 4% growth in the Crocs brand, stronger-than-expected sales in North America, and accelerating momentum in China.
IRO Appoints First Creative Director
French fashion brand IRO has named Nicolas Rohaut as its first-ever creative director. His debut collection, the 2026 Resort line, will launch in June. Rohaut, who has worked at Paco Rabanne and Dior, aims to refresh the brand while preserving its signature materials like leather and denim.
IRO, known for its Paris-meets-New York rock-chic aesthetic, recently appointed Isolde Andouard as CEO. Andouard, previously with Ba&sh and SMCP Group, brings extensive experience in French fashion retail. Owned by China’s EPO Group, IRO operates over 100 boutiques and 600 retail locations globally.
Conclusion
The luxury and fashion industry is undergoing major shifts, from market exits to leadership shake-ups and strategic acquisitions. As brands navigate digital transformation, changing consumer expectations, and evolving global markets, adaptability will be key to sustaining growth and competitiveness in the luxury space.
