The Secret Marriage Between High Tech and High Fashion
Yoox Net-a-porter can easily access the US market while keeping a foot in the European market.
At the peak of the first stage of Internet Revolution most analysts predicted finances to be the transforming vehicle for the world economy. Twenty years thereafter we see world finances mired in a maze of costs arising mostly from the regulatory realm but also from the lack of understanding of the impact of technology in the trade as a cost crushing factor. And while some initiatives that better match the current stage of world economic development in mature economies such as Bitcoin and Internet based banks are thriving, they represent the world financial ban lieu.
Indeed, current leaders of this fundamental activity to economic growth are baby boomers who not only were not digital natives but enjoyed a host of staffers to deal with correspondence, phone calls; event scheduling, decisions follow-up etc. Nowadays these are quite personal activities that can be easily carried out from a smartphone.
The technology genius thus decided to continue its transforming task by means of entering the world economy through the secret door of haute couture where the road seemed to be better paved. Why was such road chosen? Because both activities share three assets which are: creative thinking; user centric designs and customer experience. A marriage of these two protagonist activities in the 21st century was the logical move!!!
And this explains the successful emergence of fashion cum technology behemoths such as ZARA, Asos, Farfetch, Lyst, Yoox Net-a-Porter, Stylewe and Zullily. The trend which will gain even more momentum over the next two decades today represents US $ 18B in revenues. And consumers keep pushing the boundaries. They want to go through a experience every time the shop or peruse online.
This is the reason supporting the Council of Fashion Designers of America‘s decision to retain the Boston Consulting Group to assess the future of Fashion Shows in New York City. They have become a sort of reality show that guides consumers through style and trends. And they want to watch !!
So no one should be surprised at the announcement made by Yoox Net-a-Porter, a British-Italian company, about increasing its operations in London where about 600 new employees will thrive by March 2017 in its new technology hub at the MediaWorks building at White City Place.
This represents a 20 percent increase in the size of the group’s technology team. And while many would think that Brexit should have given a cold shoulder to any new investments in England, truth of the matter is that the US remains the most important market for luxury goods worldwide with a 90% share.
China, Japan Italy and France follow the US representing 10% of the world market. By positioning themselves in London Yoox Net-a-porter can easily access the US market while keeping a foot in the European market. But perhaps the true reason behind this move is that the company will be mid-way between fashion creation and technology creation which the ideal place to be to successfully cater to the demand of C and X geners!!!