Farfetch Limited
Screenshot
Type of businessPublic
Traded asNYSE: FTCH
FoundedJune 2007
HeadquartersLondon, England
Key peopleJosé Neves, founder and CEO
IndustryE-commerce
ProductsClothes, shoes, accessories, jewellery, designer
Employees5,441 (2020)
URLfarfetch.com

Farfetch is an 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.[1] The company was founded in 2007 by the Portuguese entrepreneur José Neves and headquartered in London.[2] In 2023 Farfetch was bought by Coupang (Korean: 쿠팡),[3][4][5] the largest online marketplace in South Korea.

History

Farfetch was founded in October 2008 by Portuguese businessman José Neves as a marketplace for high-end fashion. The company was based in London and had a launch team of 5 people.[6] Initially registered as Far-fetch.com Ltd from 2007- 2010, then Farfetch.com Ltd from 2010 - 2013,[7] the company's idea was to small offline fashion boutiques with a global customer base using technology.[8]

In 2015, Farfetch announced its acquisition of one of the boutiques in its network, London high end retailer Browns.[9] According to Neves, the aim was a closer integration of online and offline shopping in a "seamless experience".[10]

In June 2017, Farfetch acquired fashion e-commerce website Style.com from Conde Nast,[11] the same month Chinese e-commerce company JD.com Inc. had bought a stake in Farfetch for $397 million.[12]

In September 2018, Farfetch (FTCH.N) listed on the New York Stock Exchange (NYSE).[13] The IPO raised $885 million after the issue of 33.6 million new shares and early investors sold up to 10.6 million shares.[14] It was reported that Neves will net $1.2 billion from the IPO.[15]

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.[16]

In December 2018, Farfetch acquired sneaker reseller, Stadium Goods, for $250 million.[17]

In February 2019, Farfetch agreed to merge its Chinese business with JD.com.[18]

In August 2019, Farfetch acquired New Guards Group, the parent organisation of Off-White designer label for $675million.[19] Immediately following the purchase, Farfetch's shares plunged by over 40 percent.[20]

In November 2020, Farfetch entered into a joint partnership with Richemont and Alibaba.[21] Alibaba and Richemont jointly invested $600 million in Farfetch, taking a combined 25% stake in Farfetch’s Chinese ventures.[22]

In October 2021, Farfetch launched its in-house fashion brand, There Was One.[23]

In January 2022 Farfetch acquired Los Angeles based beauty retailer Violet Grey for $55.7 million.[24]

In April 2022, Farfetch announced the acquisition of Wannaby Inc.[25]

In August 2022, Farfetch reached an agreement to purchsase 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.[26]

In October 2023, CreditRiskMonitor reported that Farfetch was nearing a potential Chapter 11 bankruptcy filing.[27] Also in October 2023 after shutting down their own beauty department, Farfetch announced the sale of Violet Grey after less than 2 years of ownership.[28]

In November 2023, it was reported that luxury conglomerate LVMH is considering purchasing back the license for Off-White, or alternatively buying Farfetch outright.[29]

In December 2023, Farfetch began seeking other offers to purchase the company including one from Carmen Busquets, a cofounding investor of Net-a-Porter.[30] The deal to purchase YNAP Group from Richemont fell through following the precipitous drop in Farfetch's market capitalization and continued losses.[31] On 18 December 2023, Farfetch was acquired by South Korean e-commerce giant Coupang in a deal that would give Farfetch access to $500 million of capital.[32]

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[33] and ships to customers in almost 190 countries.[34]

See also

References

  1. ↑ "Online fashion curator FarFetch, which links shops to customers, grows in China". South China Morning Post. Retrieved 9 February 2017.
  2. ↑ "Farfetch Company Profile: Stock Performance & Earnings | PitchBook".
  3. ↑ Coupang to Rescue Farfetch, Injecting $500 Million Into Troubled Firm Women's Wear Daily, SAMANTHA CONTI, EVAN CLARK, DECEMBER 18, 2023
  4. ↑ Farfetch Sold to South Korea’s Coupang Business of Fashion, MALIQUE MORRIS, 18 December 2023
  5. ↑ Farfetch Gets $500 Million Lifeline From Coupang New York Times, December 18, 2023
  6. ↑ "The Farfetch journey, 10 years from start-up to IPO". Medium. 9 October 2018.
  7. ↑ "FARFETCH UK LIMITED overview - Find and update company information - GOV.UK". find-and-update.company-information.service.gov.uk. Retrieved 28 February 2023.
  8. ↑ "Farfetch. 400 designer boutiques in one place, anywhere, anytime". Peter Fisk.
  9. ↑ Milligan, Lauren. "Farfetch Buys Browns". British Vogue. Retrieved 9 February 2017.
  10. ↑ "FARFETCH ACQUIRES LONDON RETAILER BROWNS AS IT WORKS TO REINVENT LUXURY SHOPPING". Fashionista. 12 May 2015.
  11. ↑ "Farfetch Buys Style.com, Forges Global Partnership With Condé Nast". WWD. 13 June 2017.
  12. ↑ "JD.com Pays $397 Million for Stake in Fashion Shop Farfetch". Bloomberg.com. 22 June 2017. Retrieved 22 June 2017.
  13. ↑ "FARFETCH LTD (FTCH) IPO". NASDAQ.com. Retrieved 23 November 2018.
  14. ↑ White, Sarah. "Farfetch tops price range in IPO in boon to luxury market". Reuters.com. Retrieved 23 November 2018.
  15. ↑ "José Neves Nets $1.2 Billion in Farfetch IPO". The Business of Fashion. 21 September 2018. Retrieved 23 November 2018.
  16. ↑ Elven, Marjorie van. "PETA buys Farfetch shares to push company to stop selling fur". Retrieved 29 November 2018.
  17. ↑ "Farfetch acquires online sneaker platform, Stadium Goods, for $250m". The Hustle. 14 December 2018. Retrieved 17 December 2018.
  18. ↑ "Farfetch to merge China sales platform with JD.com". Financial Times. 14 December 2018. Retrieved 19 April 2019.
  19. ↑ Fernandez, Chantal (8 August 2019). "Why Farfetch Bought New Guards Group". Business of Fashion. Retrieved 9 August 2019.
  20. ↑ "Farfetch Stock Plunges After Acquiring Off-White Licensee in $675 Million New Guards Deal". WWD. 8 August 2019.
  21. ↑ "Farfetch opens the floodgates for smaller luxury brands to enter China". Glossy. 9 November 2020. Retrieved 1 December 2020.
  22. ↑ China, Tech In (16 November 2020). "Alibaba and Richemont jointly invest in Farfetch". Medium.com. Retrieved 1 December 2020.
  23. ↑ Bateman, Kristen (19 October 2021). "Farfetch Is Launching Its Own Fashion Brand, Shop It Now". Vogue.
  24. ↑ "Online retailer Farfetch Discloses How Much It Paid for Violet Grey". Yahoo! News. 10 March 2023.
  25. ↑ "Farfetch Announces First Quarter 2022 Results". Bloomberg.com. 26 May 2022.
  26. ↑ "EX-99.1". www.sec.gov. Retrieved 14 December 2023.
  27. ↑ "11 retailers at risk of bankruptcy in 2023". Retail Dive. 2 October 2023. Retrieved 3 October 2023.
  28. ↑ Rao, Priya (17 October 2023). "Farfetch to Sell Violet Grey". The Business of Fashion. Retrieved 13 November 2023.
  29. ↑ Salamone, Lorenzo (6 November 2023). "Off-White: will Virgil Abloh's brand be bought by LVMH?". nss magazine. Retrieved 9 November 2023.
  30. ↑ Conti, Samantha; Clark, Evan (13 December 2023). "The Clock Is Ticking at Farfetch". WWD. Retrieved 14 December 2023.
  31. ↑ Jucca, Lisa (29 November 2023). "Richemont Digital Strategy Goes Back to Square One". Reuters. Retrieved 14 December 2023.
  32. ↑ Farfetch rescued in last-minute deal Draper's, EMMA FINAMORE, 18 DECEMBER 2023
  33. ↑ "Farfetch's Global Platform Play". The Business of Fashion. 5 April 2015. Retrieved 9 February 2017.
  34. ↑ "UK leads world's ecommerce exports as fashion brands travel well". Retrieved 9 February 2017.
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