In order to better integrate its e-commerce site with its chain of physical stores, the Italian fashion house Giorgio Armani has signed a deal with online retailer Yoox Net-a-Porter (YNAP). The two companies revealed this partnership on Wednesday.
The industrial giants have collaborated for 20 years and Armani’s main e-commerce website, Armani.com. It was designed and already being managed by Yoox Net-a-Porter (YNAP), which is now owned by Cartier maker Richemont.
This is considered as the new ‘Next Era’ partnership, which is scheduled to run until 2025. Through this partnership, the customers of Armani will be able to get access to all the products available online as well as offline platforms. The full integration of this collaboration is expected in 2022.
The President and CEO of YNAP, Federico Marchetti told Reuters, ‘An additional benefit is the reduction of waste…it helps avoid ‘false sold-outs’ and eliminates product being left unsold due to siloed stock inventories in separate locations,’
Many luxury brands have been neglecting the use of e-commerce sites and Armani is also one of those. According to consultancy Bain, the digital channel had contributed only 12% to the sales last year but it is expected that it will rise to 29-30% by 2025.
The COVID-19 pandemic has forced many brands to shut down their physical stores and stop production. This has encouraged the brands to rely on online distribution channels rather than on a so-called ‘phygital’ strategy.
As announced by Armani, physical stores would still play crucial roles in luxury sales but since many customers have moved online, the company is trying to sell them products through an online platform.