YNAP’s China exit: The end of third-party luxury e-commerce?

What happened Yoox Net-a-Porter (YNAP) officially announced its exit from the Chinese market on February 15, confirming that all online operations across platforms such as Tmall, WeChat Mini Programs, Xiaohongshu (also known as RedNote), Douyin, and its official website would cease by March 20, 2025. After this, after-sales services will continue until April 22, but all functions will be terminated afterward. This closure marks the end of YNAP’s decade-long presence in China, a journey that started with Net-a-Porter’s initial launch in 2013, followed by a merger with Yoox in 2015. In its heyday, YNAP was the world’s largest luxury e-commerce platform. However, over the years, it has struggled to stay afloat in the ultra-competitive Chinese market. Despite its initial foray into the market via a joint venture with Alibaba’s Tmall Luxury Pavilion in 2019, Yoox Net-a-Porter faced significant challenges that ultimately led to its withdrawal. The e-commerce giant’s troubles have been exacerbated by over-discounting, with many items being sold at steep markdowns, sometimes up to 50% off, which signaled poor sales and excess inventory. Reports of unsold products from previous seasons, and a shift in consumer spending habits, with a focus on experiences rather than material goods, added to the platform’s woes. Additionally, YNAP’s failure to provide the personalized shopping experiences and fast delivery services that Chinese consumers demand, only deepened its struggles. The Jing Take The writing had been on the wall for months. Reports of YNAP’s planned exit circulated in mid-2023, and its domestic membership program quietly disappeared by year-end. Richemont’s October 2024 decision to offload YNAP to Mytheresa only reinforced the platform’s precarious standing. Facing a colossal 13 billion euros ($14 billion) write-down, Richemont’s digital missteps proved costly. For luxury brands, the decline of third-party platforms is unsurprising. Chinese consumers demand seamless, high-touch digital experiences, and YNAP failed to keep up. Unlike competitors that tailored offerings with concierge services and localized digital touch points, YNAP relied on deep discounting, diluting its luxury positioning. The result? Consumers gravitated toward official brand channels, where authenticity, exclusivity, and personalization reign supreme. Meanwhile, the broader industry reckoning continues. Farfetch barely escaped bankruptcy in late 2023 thanks to Coupang's rescue deal, while Matchesfashion collapsed early last year. As luxury houses like LVMH and Chanel double down on their proprietary ecosystems, the question looms: Does a future exist for third-party luxury e-commerce in China? YNAP’s departure leaves an open battlefield. Mytheresa will need a compelling strategy to succeed where its predecessor failed, or risk becoming the next casualty in China’s evolving luxury landscape. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Why YNAP failed in China

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Why YNAP failed in China