Net-a-Porter’s China Exit: The Wake-Up Call for Luxury Brands to Go D2C

Published on: March 5, 2025

Yoox Net-a-Porter (YNAP) has just ghosted China. One day, they’re the country’s biggest luxury distributor. Next, they’re packing up their designer bags and leaving, no heartfelt goodbyes, no drawn-out exit. Just a brisk corporate wave and a locked door behind them.

For premium brands that leaned on YNAP to reach China’s US$110.15 billion luxury market, this might feel like a disaster. But was that relationship ever truly healthy?

YNAP owned the customer relationships, skimmed off a fat chunk of the profits, and often slapped luxury goods next to fire-sale discounts that made them look about as desirable as day-old bread. And now? They’ve simply pulled the trigger on a decision you should have made ages ago.

This isn’t a setback. It’s a reset. The middleman is gone, and that’s the best thing that could’ve happened. Because in China, direct-to-consumer (D2C) isn’t just a smart idea. It’s the difference between thriving and watching your brand fade into irrelevance.

China’s Luxury Market is Evolving

A little slowdown? Sure. But struggling? Hardly. China’s luxury market is still set to hit US$110.15 billion in revenue in 2025. That’s more than Croatia’s entire GDP. So no, the problem isn’t demand. Chinese shoppers haven’t suddenly lost their taste for premium, luxury brands.

They’re spending just fine — just not where you might expect. In 2024, 40% of all Chinese luxury purchases happened overseas. Japan, in particular, became a shopping hotspot. In fact, Chinese luxury spending in neighbouring markets didn’t just rebound to 2019 levels, it surged past them, hitting 120%. And this was with travel still not fully rebounding.

But instead of embracing this appetite for luxury, third-party platforms like YNAP have spent years tripping over their own feet. They’re that one friend who insists on ordering for the whole table, picks all the wrong dishes, and then expects you to tip them generously for the privilege.

Discount Spiral and Data Black Hole

In its final days, YNAP went full meltdown mode, slashing prices by 50-90% like a department store desperate to clear out last season’s inventory. So much for exclusivity. That white gold diamond necklace that once oozed prestige? Sold for the price of a budget weekend getaway. And once customers see those rock-bottom prices, good luck convincing them to pay full price ever again.

Then there’s the data black hole.

YNAP guarded customer insights like Smaug hoarding his treasure, leaving brands completely blind. Are your buyers high-flying socialites or university students with expensive taste? Who knows? Meanwhile, brands that went D2C? They know everything — from a customer’s first click to their birthday, their anniversary, their go-to colour, and even what emojis they love spamming.

And that’s exactly what Chinese shoppers want. 73% say they crave personalised experiences, not some one-size-fits-none, soulless marketplace listing.

Take Burberry. When they launched their Douyin flagship store, they weren’t just selling trench coats. They were selling stories, virtual outfits for avatars, and hyper-relevant cultural moments. The result? 46% sales growth in China in just 3 months. No middleman taking a cut. No discount-driven brand dilution. Just pure, unfiltered luxury.

And then there’s speed.

On Valentine’s Day, Cartier used its WeChat boutique to sell 150 pink gold Love bracelets. The first 88 were hand-delivered by “Cartier boys” in red jackets, carrying fresh flowers, straight to customers’ doors across 18 cities. The whole thing sold out in a flash.

Why did it work? Because D2C moves at the speed of culture. No waiting for approval cycles. No begging platforms for visibility. Just direct access, total control, and the sweet sound of sales rolling in.

Meanwhile, YNAP’s grand finale in China? A fire sale so undignified it made Walmart’s Black Friday look classy.

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Navigating China’s D2C Playground

Going D2C in China is about picking the right platforms, nailing the right strategy, and striking that perfect balance between exclusivity and accessibility. Get it right, and you’re building brand loyalty that no third-party platform could ever match.

So, where do you set up shop? Wherever Chinese shoppers already are.

Here’s your playbook to D2C success in 2025:

WeChat Mini-Programs: Think of it as your digital storefront, VIP lounge, and concierge service all rolled into one. Prada’s mini-program lets shoppers AR-try sunglasses and book private collection viewings.
Douyin Livestreams: Think QVC, but make it luxury. Real-time engagement, impulse-driven sales, and a sprinkle of entertainment.
RedNote (aka Xiaohongshu): China’s luxury word-of-mouth engine. Less about the hard sell, more about aspiration and making sure your brand is part of the right conversations.
Tmall & JD: Still relevant, but as a complement, not a crutch. These platforms offer scale, but if you don’t own your audience beyond the checkout page, you’re just another brand buried in a search bar.

China’s luxury market moves with its economy. Linear regressions from FSW Markets show that for every 1% increase in China’s GDP, luxury revenues climb 0.83%. But with economic growth forecasts cooling, brands can’t afford to sit back and hope for the best.

Especially when Gen Z is rewriting the rulebook. 21% of them already drop over 16% of their income on luxury, according to KPMG China. And what do they want? Authenticity. Exclusivity. Personalisation. If brands don’t give it to them directly, they’ll find it somewhere else.

So, to brands still clinging to third-party platforms: What’s your move?

At WPIC, we help premium brands go D2C in China the right way — from WeChat mini-programs to Douyin commerce to KOL marketing and data analytics. No guesswork. No middlemen. Just direct access to China’s luxury consumers.

If you’re ready to take control, own your audience, and build a future-proof presence in China, let’s talk.

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Net-a-Porter’s China Exit: The Wake-Up Call for Luxury Brands to Go D2C

China’s Luxury Market is Evolving

Discount Spiral and Data Black Hole

Let's Connect.

Navigating China’s D2C Playground

Here’s your playbook to D2C success in 2025:

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