Is Amazon about to acquire Yoox?
Investing in luxury
"It's ultimately Amazon's desire to be able to serve anybody anything that they want on their site," stated Neil Doshi, an analyst at CRT, to Bloomberg. In an attempt to reach the luxury market Amazon are yet to fully serve, it is being reported that the company may show an interest in acquiring the Yoox Group.
Yoox went public in 2009 and since this date the luxury e-commerce concept carries over 30 brands and has nearly tripled its revenue to about $605 million last year. The growth is set to continue, with analysts projecting sales of more than $1 billion by 2016.
It is thought that potential buyers could get the Yoox Group for a "bargain" right now as shares have fallen 40 percent this year, leaving them near their lowest valuation since last May. "That slump is unwarranted because Yoox has a wider product offering than ASOS, more geographic reach and a more affluent consumer base," commented Chaira Rotelli, a Milan-based analyst at Mediobanca SpA in the Bloomberg report.
All signals are pointing towards the fact that it would be a lucrative time to purchase the Yoox Group - a premium and luxury business that is on the cusp of something brilliant. Whether Amazon will be the company to strategically acquire Yoox only time will tell...