Further changes are pending at Fashionette AG. The Düsseldorf online retailer will be relying on a platform strategy in the future and intends to focus entirely on luxury fashion
In the third quarter of the current financial year, the company’s business activities are to be expanded and its own business model in the luxury fashion sector established, according to reports from Düsseldorf on Thursday.
“At Fashionette we are now clearly positioning ourselves in the luxury sector. In addition, we closed unprofitable business areas at the beginning of the year,” says Dominik Brenner, CEO of Fashionette AG. “The platform strategy that has now been decided is a milestone for Fashionette. On the one hand, we will use it to occupy the luxury fashion sector. This has the greatest growth potential. At the same time, there are only a few competitors. On the other hand, the platform strategy allows us to grow in several EU countries in a scalable manner, which was not possible before.”
At least 100 European luxury retailers are to be bundled on Fashionette
In the coming months, the luxury fashion and leather goods sector is to be strengthened and the range significantly expanded. According to the announcement, the company plans to bundle a three-digit number, i.e. at least 100 European luxury goods suppliers, on Fashionette by 2023. The business model should not only be established in Germany, but also as a European platform in the luxury fashion sector.
Both dealers and manufacturers should also be connected to the platform. The technical connection of the partners takes place both via the Enterprise Resource Planning (ERP) systems of the respective partners and via the ERP system from Fashionette, which is made available.
Fashionette in transition
The online retailer announced a strategic realignment back in February and announced that Fashionette AG would be positioning itself more broadly in the luxury segment in the future. The announcement followed a sobering 2022 result that fell far short of expectations. As a result, the company also underwent a leadership change, appointing Brenner as CEO. He is also managing partner and CEO of e-commerce group The Platform Group, which became Fashionette’s majority shareholder last December through the acquisition of a 38.5 percent stake.
Under the leadership of Brenner, Fashionette AG recently reduced its range as part of a comprehensive “efficiency and cost reduction program”. The company stopped selling cosmetic products and will also stop selling smartwatches by the end of May.