French luxury group LVMH, led by Bernard Arnault, will invest millions of dollars in Lyst once again. The luxury fashion search engine wants to expand its global expansion this way.
Strategic partnership
LVMH, alongside venture capitalists Accel and Balderton, was one of the partners of Lyst’s first capital round. The French will now once again invest a lot of money in Lyst: the actual amount was not revealed, but well-informed sources indicate that the fashion platform attracted at least 50 million pounds (57 million euro). LVMH apparently contributed at least 90 %.
It is obvious the French luxury group pioneered the deal, because its chief digital officer, Ian Rogers, will join Lyst’s board.
Luxury web shop Lyst.com is basically an enormous search engine that brings together the “higher echelons” of thousands of brands, department stores and boutiques’ product range. In the March 2017 – March 2018 period, it allegedly generated a 325 million dollar turnover in clothing (gross merchandise value). Lyst charges a fee, which resulted in a 21 million dollar net turnover.
International expansion
The additional funds and privileged partner LVMH’s strategic input should help speed up the London-based company’s international expansion. Lyst currently generates 60 % of its turnover in the United States, 30 % in Europe and 10 % in Asia, all from an exclusively English website until recently.
A French website launched already and a Spanish and German site will soon follow. “It is not only about the language, but also about a global experience in a local market dynamic, because a French customer is different to a British or American consumer”, co-founder Chris Morton told Business of Fashion.
Lyst and LVMH want to get in on the luxury eCommerce sales, which currently contributes 9 % of the overall luxury market, but that should increase to 20 % according to Bain & Company. Lyst forecasts a 500 million dollar Gross Merchandise Value for this year.
