Luxury group Richemont switches to e-commerce Farfetch



Richemont chooses Farfetch as a technology partner to support the implementation of its luxury internet and point-of-sale retail vision, Luxury New Retail, for its brands and to accelerate its market place on Yoox Net A Porter. In this agreement, Farfetch has the option to acquire 100% of Yoox Net A Porter.

A scholarship that is both technological and financial

The approach is financial and technological between two big luxury players, Richemont and Farfetch, in relation to Yoox Net A Porter, the online fashion sales platform owned by Richemont. Richemont adopts Farfetch’s platform solutions to realize its Luxury New Retail vision both in e-commerce and to connect its branded stores to the web and its contact centers.

Yoox Net A Porter e-commerce site will adopt Farfetch platform solutions

Richemont is also opening electronic concessions for its brands in the Farfetch market. The e-commerce site Yoox Net A Porter will adopt solutions from the Farfetch platform to increase its sales and move to a hybrid business model, between points of sale and the web. A merger is being considered between Yoox Net A Porter and Farfetch.

In detail, Richemont adopts the Farfetch platform to unify front office operations, leverage its Luxury Houses’ e-commerce and contact center operations, connect physical stores across the world for a seamless omnichannel customer experience. Richemont luxury brands retain ownership of the look and feel of the front-end interface to express their brand identity.

Decoupling between frontend to customer and provisioning operations

Richemont is proud to decouple online front-end and retail solutions from its supply chain and back-end. This should reduce the complexity and interdependencies of the integration so that the front end evolves at a faster pace and accelerates the Luxury New Retail vision. Most Richemont Houses will also launch electronic concessions whose product curation will be organized in the Farfetch marketplace, fully bringing together the warehousing and logistics processes with their Farfetch powered “brand.com”.

Customers are increasingly demanding for seamless experiences across all wind channelsand

Richemont justifies its technology strategy by referring to the fact that the online luxury market is expected to more than triple by 2025, according to a study by Bain & Company. The luxury group also cites an increasingly demanding clientele for seamless experiences across all sales channels. ” Requires ongoing investment in technology says Richemont.

Farfetch advertises nearly 4 million digital native customers, primarily affluent Millennials and Gen Z customers. Its 2021 revenue amounts to €4.2 billion with a positive EBITDA of €2 million. Yoox Net A Porter announces a sales volume of 2.5 billion euros and a negative EBITDA of 24 million euros.

Farfetch acquires nearly half of Yoox Net A Porter

On the financial side, Farfetch and Symphony Global acquire a 47.5% and 3.2% stake, respectively, in Yoox Net A Porter, making it a neutral platform with no majority shareholder. Richemont and Farfetch will have call and put options, respectively, for Farfetch to acquire the remainder of Yoox Net A Porter, subject to certain conditions.

Farfetch technology will allow Richemont to benefit from the best route to market

Today’s announcement is an important step towards realizing a 2015 dream of building an independent, neutral online platform that is highly attractive to luxury brands and their discerning clientele. rejoices Johann Rupert, president of Richemont. ” Farfetch’s sophisticated technology will enable Richemont to benefit from the best path to market and realize its Luxury New Retail vision. he continues. ” Implementing a hybrid model on Yoox Net A Porter will significantly improve your prospects he says.

Yoox Net Porter’s valuation has been adjusted to the current market environment and Richemont will receive Farfetch shares in exchange. In passing, the leader greets his son. ” Special thanks to my son Anton, whose technological prowess and creative thinking were essential in building this partnership. he declares. ” And I thank my colleagues for their hard work over the past two years, which has allowed Richemont to reach this tipping point in its transformational journey into a new luxury commerce. he finishes.

Improve digital customer experiences

“.This partnership unequivocally establishes Farfetch as a preeminent global platform for luxury. says José Neves, founder and CEO of Farfetch. ” The Houses of Richemont and luxury e-commerce pioneer Yoox Net A Porter will be able to enhance their customers’ digital experiences by leveraging Farfetch platform solutions he adds.

We saw a 35% drop in incidents from unauthorized parties

The manager explains that the launch of Richemont brands e-concessions on Farfetch’s marketplace is a radical change in its “heavy luxury” strategy, which represents more than 20% of the luxury industry in the world, but only 3% of sales in Farfetch. “This is an area where we’re seeing much stronger customer demand compared to the supply we’ve had so far,” he says. Farfetch acquires 47.5% of Yoox Net A Porter and is involved in transforming Yoox Net A Porter into a hybrid business model. ” We believe this will drive strong growth and profitability for Yoox Net A Porter. he finishes.

Our deep knowledge of the luxury market in the Middle East, with its influential and tech-savvy customers, will be of great value to Yoox Net A Porter in the future. concludes Mohamed Alabbar, founder and owner of Symphony Global. The Swiss group Richemont has a portfolio of “Houses” recognized for their know-how. The group operates in four business areas. They are jewelry with Cartier, Van Cleef & Arpels, etc. ; watchmaking with Baume & Mercier, Jaeger-LeCoultre, Piaget, etc. ; online distribution with Yoox Net-A-Porter Group (Net-A-Porter, Mr Porter, Yoox, The Outnet) and Watchfinder & Co.; in addition to other activities, including mainly fashion and accessories “Houses”, with Alaïa, Chloé, Dunhill, Montblanc and Peter Millar.



Leave a Comment