Farfetch Confirms Discussions With Richemont
Farfetch Limited, the leading global platform for the luxury fashion industry, confirms that they are in discussions with Richemont in relation to a potential expansion of their existing Luxury New Retail strategic partnership. The parties are discussing a number of possible options, including the leveraging of Farfetch Platform Solutions (FPS) to power Richemont’s maisons and YOOX NET-A-PORTER (YNAP), the participation of Richemont’s maisons in Farfetch’s Marketplace and a minority investment in YNAP by Farfetch.
Richemont and Farfetch intend to create a neutral, industry-wide platform, built on the latest omnichannel retail technologies, to support the digitisation of the luxury industry.
The scope of the current discussions includes:
(i) Farfetch investing directly in YOOX NET-A-PORTER as a minority shareholder, with other investors to be invited to participate alongside;
(ii) YOOX NET-A-PORTER leveraging Farfetch Platform Solutions to support its ongoing transition to a hybrid 1P/3P business model;
(iii) Richemont Maisons leveraging Farfetch technology to accelerate their Luxury New Retail developments; and
(iv) Richemont Maisons joining the Farfetch marketplace.
However, there can be no guarantee that the parties will be able to reach an agreement on any of the options under consideration. If these discussions progress, Farfetch will make further announcements if and when required.
Other luxury industry players and investors have already indicated their interest in investing in YOOX NET-A-PORTER alongside Richemont and Farfetch. The ultimate objective is for YOOX NET-A-PORTER to be a neutral platform, with no controlling shareholders.
Richemont continues to work with Farfetch towards definitive agreements and will provide an update in due course, said the luxury conglomerate in a statement. There can be no certainty that the discussions will lead to definitive agreements, nor as to the timing or terms of any transaction. Any transaction would be subject to the receipt of clearances from relevant anti-trust authorities.
Farfetch Limited is the leading global platform for the luxury fashion industry. Founded in 2007 by José Neves and launched in 2008, Farfetch began as an e-commerce marketplace for luxury boutiques around the world. Today the Farfetch Marketplace connects customers in over 190 countries and territories with items from more than 50 countries and nearly 1,400 of the world’s best brands, boutiques and department stores, delivering a truly unique shopping experience and access to the most extensive selection of luxury on a single platform. Farfetch’s additional businesses include Browns and Stadium Goods, which offer luxury products to consumers, and New Guards Group, a platform for the development of global fashion brands. Farfetch offers its broad range of consumer-facing channels and enterprise level solutions to the luxury industry under its Luxury New Retail initiative. The Luxury New Retail initiative also encompasses Farfetch Platform Solutions, which services enterprise clients with e-commerce and technology capabilities and innovations such as Store of the Future, its connected retail solution.