Farfetch
{{short description|Online fashion retail platform}}
{{Use dmy dates|date=June 2017}}
{{Infobox website
| name = Farfetch Limited
| logo = File:Farfetch logo 2020.svg
| company_type = Subsidiary
| logo_size = 200
| collapsetext = Screenshot
| key_people =
| industry = E-commerce
| products = Clothes, shoes, accessories, jewellery, designer
| num_employees = 5,441 (2020)
| homepage = {{URL|http://farfetch.com}}
| foundation = {{start date and age|June 2007}}
| founder = José Neves
| location = London, England
| owner = {{ubl|Coupang {{smaller|(2024–present)}}}}
}}
Farfetch is a British e-commerce company focused on luxury clothing and beauty products. It operates as a digital marketplace that sells products from several hundred brands, boutiques and department stores from around the world.{{Cite news|url=http://www.scmp.com/lifestyle/fashion-luxury/article/1976863/online-fashion-curator-farfetch-which-links-shops-customers|title=Online fashion curator FarFetch, which links shops to customers, grows in China|newspaper=South China Morning Post|access-date=9 February 2017|language=en}} In January 2024, the company was acquired by Coupang.{{cite news |last1=Morris |first1=Malique |title=South Korea's Coupang Completes Farfetch Acquisition |url=https://www.businessoffashion.com/news/luxury/coupang-completes-farfetch-acquisition/ |access-date=7 May 2024 |work=The Business of Fashion |date=31 January 2024 |language=en}}
History
Farfetch was founded in June 2007 by Portuguese businessman José Neves as a marketplace for high-end fashion.{{cite web | url=https://pitchbook.com/profiles/company/53637-58#overview | title=Farfetch Company Profile: Stock Performance & Earnings | PitchBook }} The company was based in London and had a launch team of 5 people.{{Cite web|url=https://medium.com/felix-capital/the-farfetch-journey-10-years-from-start-up-to-ipo-aa734575b03b| title=The Farfetch journey, 10 years from start-up to IPO| website=Medium|date=9 October 2018}} Initially registered as Far-fetch.com Ltd from 2007- 2010, then Farfetch.com Ltd from 2010 - 2013,{{Cite web |title=FARFETCH UK LIMITED overview - Find and update company information - GOV.UK |url=https://find-and-update.company-information.service.gov.uk/company/06400760 |access-date=2023-02-28 |website=find-and-update.company-information.service.gov.uk |language=en}} the company's idea was to connect small offline fashion boutiques with a global customer base using technology.{{Cite web| url=https://www.peterfisk.com/gamechanger/farfetch/ |title=Farfetch. 400 designer boutiques in one place, anywhere, anytime. |website=Peter Fisk}}
In 2015, Farfetch announced its acquisition of one of the boutiques in its network, London high end retailer Browns.{{Cite news|url=http://www.vogue.co.uk/article/farfetch-buys-browns-london-boutique-sold|title=Farfetch Buys Browns|last=Milligan|first=Lauren|newspaper=British Vogue|access-date=9 February 2017|language=en-GB}} According to Neves, the aim was a closer integration of online and offline shopping in a "seamless experience".{{Cite web|url=https://fashionista.com/2015/05/farfetch-acquires-browns|title=FARFETCH ACQUIRES LONDON RETAILER BROWNS AS IT WORKS TO REINVENT LUXURY SHOPPING | date=12 May 2015| website=Fashionista}}
In June 2017, Farfetch acquired fashion e-commerce website Style.com from Conde Nast,{{cite web|url=https://wwd.com/feature/exclusive-farfetch-buys-style-com-forges-global-partnership-with-conde-nast-10911996/| title=Farfetch Buys Style.com, Forges Global Partnership With Condé Nast| website=WWD| date=2017-06-13}} the same month Chinese e-commerce company JD.com Inc. had bought a stake in Farfetch for $397 million.{{Cite news|url=https://www.bloomberg.com/news/articles/2017-06-22/jd-com-pays-397-million-for-stake-in-fashion-retailer-farfetch|title=JD.com Pays $397 Million for Stake in Fashion Shop Farfetch|date=22 June 2017|website=Bloomberg.com|access-date=22 June 2017}}
In September 2018, Farfetch (FTCH.N) listed on the New York Stock Exchange (NYSE).{{Cite web|url=https://www.nasdaq.com/markets/ipos/company/farfetch-ltd-1062291-87686|title=FARFETCH LTD (FTCH) IPO|website=NASDAQ.com|language=en-us|access-date=2018-11-23}} The IPO raised $885 million after the issue of 33.6 million new shares and early investors sold up to 10.6 million shares.{{Cite news|url=https://www.reuters.com/article/us-farfetch-ipo-luxury/farfetch-tops-price-range-in-ipo-in-boon-to-luxury-market-idUSKCN1M11BQ|title=Farfetch tops price range in IPO in boon to luxury market|last=White|first=Sarah|website=Reuters.com|access-date=2018-11-23|language=en-US}} It was reported that Neves will net $1.2 billion from the IPO.{{Cite news|url=https://www.businessoffashion.com/articles/news-analysis/farfetch-founder-stake-valued-at-1-2-billion|title=José Neves Nets $1.2 Billion in Farfetch IPO|date=2018-09-21|work=The Business of Fashion|access-date=2018-11-23|language=en-GB}}
On 24 September 2018, animal rights activist organization PETA announced that they had purchased shares that would allow them to attend annual shareholder meetings and stop the company from selling fur products.{{Cite news|url=https://fashionunited.uk/news/business/peta-buys-farfetch-shares-to-push-company-to-stop-selling-fur/2018092439087|title=PETA buys Farfetch shares to push company to stop selling fur|last=Elven|first=Marjorie van|access-date=2018-11-29|language=en-gb}}
In December 2018, Farfetch acquired sneaker reseller, Stadium Goods, for $250 million.{{Cite web|url=https://thehustle.co/farfetch-stadium-goods-sneakerheads-streetwear-hypebeast/|title=Farfetch acquires online sneaker platform, Stadium Goods, for $250m|date=2018-12-14|website=The Hustle|language=en-US|access-date=2018-12-17}} Three months later, it agreed to merge its Chinese business with JD.com.{{Cite web|url=https://www.ft.com/content/64649eb8-4307-11e9-b168-96a37d002cd3|title=Farfetch to merge China sales platform with JD.com.|date=2018-12-14|website=Financial Times|language=en-US|access-date=2019-04-19}}
In August 2019, Farfetch acquired New Guards Group, the parent organisation of Off-White designer label for $675million.{{cite web |last1=Fernandez |first1=Chantal |author-link=Chantal Fernandez |date=8 August 2019 |title=Why Farfetch Bought New Guards Group |url=https://www.businessoffashion.com/articles/professional/farfetch-acquires-off-white-parent-new-guards-group |access-date=9 August 2019 |website=Business of Fashion |language=en}} Immediately following the purchase, Farfetch's shares plunged by over 40 percent.{{cite web|title=Farfetch Stock Plunges After Acquiring Off-White Licensee in $675 Million New Guards Deal|url=https://wwd.com/feature/farfetchs-stock-plunge-despite-new-guards-acquisition-1203236614/|website=WWD|date=8 August 2019 }}
In November 2020, Farfetch entered into a joint partnership with Richemont and Alibaba.{{Cite web|date=2020-11-09|title=Farfetch opens the floodgates for smaller luxury brands to enter China|url=https://www.glossy.co/fashion/farfetchs-partnership-with-alibaba-opens-the-floodgates-for-smaller-luxury-brands-to-enter-china/|access-date=2020-12-01|website=Glossy|language=en}} Alibaba and Richemont jointly invested $600 million in Farfetch, taking a combined 25% stake in Farfetch's Chinese ventures.{{Cite web|author=Tech In China|date=2020-11-16|title=Alibaba and Richemont jointly invest in Farfetch|url=https://techinchina.medium.com/alibaba-and-richemont-jointly-invest-in-farfetch-76efd0c7a211|access-date=2020-12-01|website=Medium.com|language=en}}
In October 2021, Farfetch launched its in-house fashion brand, There Was One.{{Cite news|url=https://www.vogue.com/article/farfetch-clothing-line-launch|title=Farfetch Is Launching Its Own Fashion Brand, Shop It Now|last=Bateman|first=Kristen|date=19 October 2021|work=Vogue}} In January 2022, the firm acquired Los Angeles based beauty retailer Violet Grey for $55.7 million.{{Cite web |date=10 March 2023 |title=Online retailer Farfetch Discloses How Much It Paid for Violet Grey |url=https://finance.yahoo.com/news/farfetch-discloses-much-paid-violet-172413325.html |website=Yahoo! News}}
In April 2022, Farfetch announced the acquisition of Wannaby Inc.{{cite news | url=https://www.bloomberg.com/press-releases/2022-05-26/farfetch-announces-first-quarter-2022-results | title=Farfetch Announces First Quarter 2022 Results | newspaper=Bloomberg.com | date=26 May 2022 }} In August, it reached an agreement to purchase a 47.5% stake in fashion e-commerce YNAP Group from Swiss luxury conglomerate Richemont, turning Net-a-Porter into a neutral platform with no controlling shareholder.{{Cite web |title=EX-99.1 |url=https://www.sec.gov/Archives/edgar/data/1740915/000119312522228027/d390762dex991.htm |access-date=2023-12-14 |website=www.sec.gov}}
In October 2023, CreditRiskMonitor reported that Farfetch was nearing a potential Chapter 11 bankruptcy filing.{{Cite web|url=https://www.retaildive.com/news/retailers-at-risk-of-bankruptcy-2023/694548/|title=11 retailers at risk of bankruptcy in 2023|date=2 October 2023|access-date=3 October 2023|website=Retail Dive|language=en}} Meanwhile, after shutting down their own beauty department, it announced the sale of Violet Grey after less than 2 years of ownership.{{Cite web |last=Rao |first=Priya |date=2023-10-17 |title=Farfetch to Sell Violet Grey |url=https://www.businessoffashion.com/news/beauty/farfetch-to-sell-violet-grey/ |access-date=2023-11-13 |website=The Business of Fashion |language=en}}
In November 2023, it was reported that luxury conglomerate LVMH was considering purchasing back the license for Off-White, or alternatively buying Farfetch outright.{{Cite web |last=Salamone |first=Lorenzo |date=6 November 2023 |title=Off-White: will Virgil Abloh's brand be bought by LVMH? |url=https://www.nssmag.com/en/article/34787 |access-date=2023-11-09 |website=nss magazine |language=en}} The following month, Farfetch began seeking other offers to purchase the company including one from Carmen Busquets, a cofounding investor of Net-a-Porter.{{Cite web |last=Conti |first=Samantha |last2=Clark |first2=Evan |last3= |first3= |date=2023-12-13 |title=The Clock Is Ticking at Farfetch |url=https://wwd.com/business-news/mergers-acquisitions/clock-ticking-farfetch-1236072193/ |access-date=2023-12-14 |website=WWD |language=en-US}} The deal to purchase YNAP Group from Richemont fell through in December 2023 following the precipitous drop in Farfetch's market capitalization and continued losses.{{Cite web |last=Jucca |first=Lisa |date=29 November 2023 |title=Richemont Digital Strategy Goes Back to Square One |url=https://www.reuters.com/breakingviews/richemont-digital-strategy-goes-back-square-one-2023-11-29/ |access-date=14 December 2023 |website=Reuters}}
On 18 December 2023 it was announced the firm would be acquired by South Korean e-commerce giant Coupang in a deal that would give Farfetch access to $500 million of capital.[https://wwd.com/business-news/mergers-acquisitions/coupang-rescue-farfetch-injecting-500-million-fashion-1236077727/ Coupang to Rescue Farfetch, Injecting $500 Million Into Troubled Firm] Women's Wear Daily, SAMANTHA CONTI, EVAN CLARK, DECEMBER 18, 2023[https://www.businessoffashion.com/articles/retail/farfetch-sold-to-south-koreas-coupang/ Farfetch Sold to South Korea's Coupang] Business of Fashion, MALIQUE MORRIS, 18 December 2023[https://www.nytimes.com/2023/12/18/business/farfetch-coupang-fashion-deal.html Farfetch Gets $500 Million Lifeline From Coupang] New York Times, 18 December 2023[https://www.drapersonline.com/news/farfetch-rescued-in-last-minute-deal Farfetch rescued in last-minute deal] Draper's, EMMA FINAMORE, 18 DECEMBER 2023 Despite challenges from a group of investors dubbed the 2027 Ad Hoc Group, who held over 50 percent of Farfetch's convertible notes, the purchase was completed on 31 January 2024.{{cite news |last1=Schulz |first1=Madeleine |title=Farfetch investors challenge 'poison pill' Coupang sale |url=https://www.voguebusiness.com/story/companies/farfetch-investors-challenge-poison-pill-coupang-sale |access-date=7 May 2024 |work=Vogue Business |date=26 January 2024}}
In February 2024, European luxury conglomerate Kering announced they would no longer work directly with Farfetch and were pulling their brands immediately. Going forward, Kering products will only be available on Farfetch via third party boutiques. In a statement to WWD, Deputy CEO Jean-Marc Duplaix said "Farfetch is not a strategic partner for us."{{Cite web |last=Conti |first=Samantha |last2=Diderich |first2=Joelle |last3=Diderich |first3=Joelle |date=2024-02-08 |title=Kering Pulls Brands Off Farfetch in Wake of Sale to Coupang |url=https://wwd.com/business-news/retail/kering-pulls-brands-off-farfetch-wake-sale-coupang-1236171102/ |access-date=2024-02-08 |website=WWD |language=en-US}}
Current operations
Farfetch currently operates marketplace websites and mobile apps in English, Spanish, French, Japanese, Chinese, Arabic, German, Dutch, Brazilian Portuguese, Korean, Italian, Danish, Swedish and Russian{{Cite news|url=https://www.businessoffashion.com/articles/fashion-tech/farfetchs-global-platform-play|title=Farfetch's Global Platform Play|date=5 April 2015|newspaper=The Business of Fashion|access-date=9 February 2017|language=en-GB}} and ships to customers in almost 190 countries.{{Cite news|url=http://www.campaignlive.co.uk/article/1227803/uk-leads-worlds-ecommerce-exports-fashion-brands-travel|title=UK leads world's ecommerce exports as fashion brands travel well|access-date=9 February 2017}}