Yoox-Net to Porter Launch into Middle East
According to Reuters, the mobile phone rate of Arab millennials exceeds 70%, which means that this population is perfectly positioned to be able to buy through the mobile devices on the online platforms.
The economic crisis in the West, fundamentally in Europe has led to accelerating many of the expansion strategies of luxury companies, especially based on the old continent. For months we have counted how both Iran and India were becoming species of luxury hubs to expand sales of European sector companies. In the Middle East, the luxury and super luxury products sales sector are called not only to lead sales in this part of the world with enormous purchasing power, but to compensate for the fall in consumption in Asia, and especially in China.
In this sense, one of the most important online luxury products platforms in the world, the Italian Yoox-Net a Porter announced last week that it had reached an agreement with billionaire Mohamed Alabbar to launch the online retail platform of Luxury in the Middle East. Apparently, the headquarters will be in Dubai, and the initial investment will be 130 million euros. The platform will serve the most important countries in the Middle East.
According to Reuters, the mobile phone rate of Arab millennials exceeds 70%, which means that this population is perfectly positioned to be able to buy through the mobile devices on the online platforms.Alabbar is the President of the company that operates the Mall of Dubai, which is the commercial center that accounts for 50% of the sales of luxury and luxury in the Middle East.
This Arab billionaire believes that it is time to bet on new technologies in the Middle East and North Africa because young Arabs also want to buy luxury products without having to travel to Europe to make purchases. Unlike their parents and their grandparents – owners of the same petrodollars – young Arab millennials prefer to buy in their countries and when they decide to travel are trips of pure leisure and not so much of purchases.
Since the merger between Yoox and Net to Porter, the Italian multinational has become the benchmark of the luxury retail world. Their sales increase exponentially, and in some cities like New York depending on the products they can get you home in less than 24 hours. Yoox- Net to Porter guarantees that its products are well of the season at discount prices, like of previous seasons but that have not been used. That has been one of the keys to its success, selling true luxury products at affordable prices.