Yoox Net-a-Porter’s APAC GM talks tech, loyalty and luxury spending

We speak with Yoox Net-a-Porter’s APAC general manager Natalie Lee about the resilience of luxury spending amidst an economic downturn, the importance of localisation, personalisation and incredible customer service, and how the company is using technology to improve the way it operates.

Inside Retail: Many people are reining in their spending due to the rising cost of living, but luxury retail seems to be booming. How have the last few months been for Yoox Net-a-Porter (YNAP)? 

Natalie Lee: We’re seeing steady growth driven by brands such as The Row, Loro Piana, Loewe, La Double J, Valentino, and Khaite. Having just done an exclusive pre-launch of The Row’s pre-fall 2023 shoes and bags runway collection product page visits have more than doubled. 

Giving our customers early access to collections is of the utmost importance to us. We are continuously working to create the best edit of products that our customers cannot get anywhere else and ensuring that we work with brands that resonate with them. 

IR: I saw that Net-a-Porter and Mr Porter recently launched a rewards program. Can you tell me about the thinking behind the loyalty program, and what impact you expect this to have on the business? 

NL: It offers customers access to exclusive benefits, including personal shopper services, regular discounts and offers, as well as complimentary express shipping. Each tier is based on your yearly spending, with every item you buy counting towards your journey in becoming one of our most valued EIP customers, otherwise known as an Extremely Important Person. 

For fall/winter 2023, our objective is to further engage with EIPs. While this group represents a small percentage of our customer base, they drive a significant portion of sales. We plan to grow this segment by ensuring these customers invest more in their wardrobe and by ensuring new customers are making considered purchases. 

Elevating our assortment, expanding our loyalty program, and growing our offering of circularity services, such as Net-a-Porter x Reflaunt, through which customers can resell their pre-loved designer items, including an option for an additional 10 per cent credit incentive, are all ways we’re working hard to evolve the brand so that our customers will love and remain loyal to it. 

IR: You joined YNAP from fashion resale site Vestiaire Collective in December 2021, so you probably understand the challenges of reducing the environmental impact of the fashion industry better than most. Can you share what YNAP is doing in the sustainability space? 

NL: For over a decade, YNAP has been pioneering greater accessibility to responsible fashion for our customers, and it starts with scouting and supporting fashion brands that are prioritising sustainability. This commitment is reflected particularly in our Net Sustain offer, Net-a-Porter’s edit of luxury and fashion for ready-to-wear, accessories, beauty and homeware that meet our 12 sustainability attributes. 

Once our customers have found their beautiful items, we want them to feel empowered to keep that item in use for as long as possible, be that through our care and repair guidance and services, or Net-a-Porter x Reflaunt. 

This landmark partnership with leading resale technology provider Reflaunt to power our resale service offers customers the opportunity to resell their own preloved designer items for flexible reward options, including direct bank transfer or store credit with an extra 10 per cent incentive. 

Offering products with sustainability credentials, and providing the opportunity to extend their life, is a key part of our business vision. All this work is helping to deliver progress against YNAP’s sustainability strategy, Infinity, which aims to contribute to a more sustainable, circular, and inclusive fashion system through to 2030. 

IR: What do you see as the biggest growth drivers for YNAP in the APAC region? How do you plan to leverage them? 

NL: Our business strategies focus on three core pillars to drive growth: merchants at heart (grow business in existing and new geographies, and develop unparalleled services and content for today’s highly discerning consumers); digital innovators (leveraging more than 20 years of data to learn from our customers, personalise customer experience, drive speed and embrace new technology); and sustainability pioneers (our long-term ambitious vision to drive a luxury and fashion industry that is more sustainable, circular, and inclusive). 

As merchants at heart, in APAC we tap into the Chinese Lunar New Year and 520 Festival every year to engage with our customers in Southeast Asia with a localised approach. As digital innovators, in 2022, we created a Lunar New Year filter on Net-a-Porter Instagram to drive social buzz and increase brand awareness. In 2023, we collaborated with Hong Kong talent Jenn Lam to produce a campaign featuring rabbit motif pieces to celebrate the Year of the Rabbit and reach a new audience. As sustainability pioneers, we are continuously working to expand our offering of responsible products, including having grown our Net Sustain edit of more sustainable luxury products by 500 per cent since launch in 2019, with an increased number of Australian brands, including Bondi Born, Joslin, Loulou Studio and St Agni. 

These three pillars fold into our constant work to create relevant and meaningful experiences for our customers and have become our biggest growth drivers in the APAC region. 

IR: YNAP is a European company, can you tell me how it has localised its offering for the APAC market? 

NL: Yoox was founded in Milan and Net-a-Porter was founded in London, and later merged in 2015. But this doesn’t mean we are European, we are a global company with offices and operations spanning across the world, including in the United States, Japan, the Middle East, China, and Hong Kong. 

Localisation and personalisation have been of increased importance for luxury brands and Net-a-Porter. We reach our customers with tailored communications and content, embedding local specificities deep into our service model, with a localisation strategy to expand our presence in new markets. This ensures the business stays locally relevant. 

We have recently launched a localised site in South Korea for Net-a-Porter. The customer experience is tailored to individuals in the region through language and content, currency and payment methods, digital marketing, and availability of local services. The buy is also increasingly regional, with local designers, collaborations and partnerships. 

Personalisation is another key part of our strategy, giving customers a luxurious experience online. Through our customer data platform, we personalise our marketing to customers through emails and push-notifications off-site and unique suggestions for what else may interest them on site. 

IR: You recently visited Melbourne, for the opening of the Pierre Bonnard: Designed by India Mahdavi exhibition at the National Gallery of Victoria, which Net-a-Porter is sponsoring. Can you tell me more about the thinking behind this partnership?

NL: It is important for us as an online luxury platform to bridge the gap between online and offline. The Melbourne Winter Masterpieces 2023: Pierre Bonnard: Designed by India Mahdavi exhibition in partnership with National Gallery of Victoria allows us to connect with our customers physically and locally. Through the activation, we understand our Australian customers’ cultural values and tradition, creating content and curated product assortments that align with their values, while supporting arts and culture with a localised approach. 

The exhibition is set to unveil more than 100 iconic works by the celebrated French artist, which are brought to life by the award-winning architect and designer Mahdavi. We aim to support the ongoing storytelling and narrative around Net-a-Porter’s Incredible Women through India Mahdavi as the brand continues to champion and celebrate women from diverse backgrounds. 

IR: I always think that mass-market retailers can learn a lot about customer service from the luxury sector. How do you approach customer service at YNAP? Can you provide any concrete examples of how you go above and beyond to deliver a great customer experience?  

NL: YNAP champions unparalleled customer service, offering express worldwide shipping to more than 180 countries with a seamless shopping experience across all devices. We strive to offer fast (same-day delivery options and a multilingual customer care team available 24/7), flexible (easy returns), and luxurious options for our customers. 

Our personal shoppers go above and beyond for our EIPs, such as hand-delivering a highly sought-after item procured, fully integrating into our EIPs’ lives by attending weddings and special occasions and taking calls daily. The real joy of the service is that the relationship with a personal shopper is entirely on the client’s terms. Some prefer a seasonal touch-base, while many are on WhatsApp daily. We always take a localised approach, with personal shopping teams positioned in different regions and an understanding of regional etiquette and culture. 

IR: As an online-only retailer, I imagine YNAP is constantly assessing new technology to determine whether it can help improve the customer experience. Can you tell me about some of the new tech you’ve rolled out recently? 

NL: Since 2020, YNAP has been running an incredible training project called The Modern Artisan, with HRH The Prince of Wales’ educational charity, The Prince’s Foundation. 

The project was the first to pilot new 3D digital design techniques, and is now successfully rolled out across YNAP. Using this technology, the trainee artisans were able to create photo-realistic samples of their garments before sending them off to print, dramatically decreasing the time it took to create garment designs and eliminating waste, marking a significant step in the company’s plans to create more sustainable, faster to market, digitally enabled fashion. 

Since 2021, we have also been embedding digital ID technology across our private-label collections, to enable customers to access bespoke information and services about their products post-purchase – be that on provenance, materials, design or care and repair guidance. Our goal with this technology is for our customers to create a deeper connection with their items and keep them in use for longer. Today, YNAP continues to harness the power of artificial intelligence, visual recognition, and augmented reality and is experimenting with these technologies to enhance the customer experience.

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