THE WHAT?  Luxury clothing sales platform Yoox Net-a-Porter (YNAP) is ceasing its operations in China. This strategic decision comes as part of a broader plan by Richemont, YNAP’s parent company, to concentrate investments and resources on its core and more profitable geographies.

THE DETAILS  YNAP operated in China through a joint venture with Alibaba, which will now be liquidated. This move highlights the retailer’s struggle to maintain profitability in China’s luxury market. A prolonged property slowdown and weak consumer demand have created a challenging environment for international luxury brands. YNAP had launched a store on Alibaba’s Tmall platform in 2013 and expanded its presence in 2018 through a partnership with Alibaba, distributing 950 luxury brands.

THE WHY? The closure reflects the increasing difficulties high-end retailers face in China. François-Henri Pinault, chair of Kering, and other industry leaders have pointed to sluggish market conditions in China affecting their performance.