link.png Could Amazon break into luxury fashion with purchase of Net-a-Porter?← Back

 
They are both giants of e-commerce and if speculation has it, they could soon be a part of the same family. This week it has emerged that Amazon is reportedly in talks to buy luxury fashion e-commerce site Net-a-Porter.com.
 
The news was originally first reported by WWD and then confirmed by Forbes on Thursday, although both Amazon and Net-a-Porter have declined to comment so far. Forbes indicated that, according to a source who is “familiar to the situation”, the talks are still in an early phase and could come to nothing. There had previously been rumours that the luxury fashion e-commerce platform might be up for sale.
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The high-end fashion e-tailer was founded by Natalie Massenet in 2000. It was then bought by Swiss holding company Richemont - which owns a large portfolio of luxury goods companies - in 2010, with Massenet remaining at Net-a-Porter as Executive Chairman. Richemont bought the company for $392 million. If the sale with Amazon does go ahead, WWD predicted Net-a-Porter could fetch as much as $2.19 billion, however the source cited by Forbes said it would be probably be less than this figure.  
 
Amazon has been gradually trying to tap into the luxury industry over the past couple years and was recently announced as the official sponsor for the new Men’s Fashion Week in New York. The purchase of Net-a-Porter, which stocks luxury labels from Alexander McQueen to Valentino, would consequently constitute a significant break into the high-end fashion industry.
 
Since neither parties having officially confirmed the news, it remains to be seen whether the deal will actually go ahead.