After many propositions, Net-A-Porter has agreed to merge with Yoox, another luxury e-commerce site in order to dominate the market together.

After a failed courtship in 2013, Italian based online retailer Yoox finally offered Net-A-Porter a lucrative deal. Yoox, an online store that sells luxury fashion at discount prices, is merging with Net-a-Porter for $4.3 billion CAD. Currently online luxury sales only make up 5% of an estimated $3 billion CAD spent on luxury items. Yoox and Net-a-Porter intends to dominate and increase this niche market. The venture is expected to strengthen both companies presence in the fiercely competitive market of online retail. Analysts speculate Yoox will grow in operational size and Net-a-Porter will strengthen their management and gain access to another sales platform.

Yoox’s out-of-season lines will combine with Net-a-Porter’s in-season lines, making them the most powerful luxury fashion retailer with expected revenues of 1.9 billion CAD. Founder of Net-a-Porter and executive chairwoman, Natalie Massnet, will maintain her position and have a 4% stake in the new company, worth 6.2 million CAD in stock. Massnet said in a statement, “Today, we open the doors to the world’s biggest luxury fashion store. It is a store that never closes, a store without geographical borders, a store that connects with, inspires, serves and offers millions of style-conscious global consumers access to the finest designer labels in fashion. A store that provides established and emerging brands with the greatest interactive shop window to the world.” It is unknown if Massnet’s involvement in Yoox Net-a-Porter will change by the time the deal becomes official.

Natalia Massnet photographed by Matt Holyoak

Natalie Massnet photographed by Matt Holyoak

As a preventive measure against corporate control on Yoox Net-a-porter’s creativity, Richemont, which owns Net-a-Porter will be a junior partner with voting rights up to 25%. Yoox’s founder Federico Marchetti will become CEO of the combined companies. Marchetti states, “Together, we plan to expand on our many combined successes and industry breadth to strengthen partnerships with the world’s leading luxury brands and harness a significant untapped growth potential.”