File photo: Chinese buyers browse products in a Giorgio Armani store in a shopping mall in Paris. Photo: IC

Italian fashion house Giorgio Armani has struck a deal with online retailer Yoox Net-a- Porter to better integrate the luxury group's e-commerce site with its network of physical stores, the two companies said on Wednesday. 

The two groups have cooperated for 20 years and Armani's main online store, Armani.com, was designed and is already managed by YNAP, now owned by Cartier maker Richemont. 

The new "Next Era" partner¬ship will offer Armani cus¬tomers access to all available products on online and offline channels, and full integration is expected in 2022. 

"An additional benefit is the reduction of waste... it helps avoid 'false sold-outs' and eliminates product being left unsold due to siloed stock inventories in separate loca¬tions," said YNAP President and CEO Federico Marchetti. 

Luxury brands have been late to embrace e-commerce, and the digital channel ac¬counted for just 12 percent of sales last year but is expected to rise to 29-30 percent by 2025, according to consultancy Bain. 

The coronavirus pandemic, which forced brands to shut shops and idle manufacturing sites, has accelerated efforts by high-end houses to increase and improve their online distribution channel alongside brick-and-mortar stores in a so-called "phygital" strategy. 

Armani said physical shops would continue to play a vital role for luxury sales but that a majority of customers were now first looking at products online before trying them on and buying them in stores - so the two channels could strengthen each other. 

Reuters