Farfetch, a UK-based online luxury fashion retailer, has carved out a niche in the global e-commerce market. The company’s popularity among shoppers can be attributed to several factors. As of the first quarter of 2023, Farfetch had a record 3.9 million active consumers, demonstrating its growing appeal. It operates as one of the leading global platforms in the luxury fashion industry, an e-commerce company specializing in high-end fashion and beauty products.
The company was founded by Portuguese entrepreneur José Neves in 2007 and officially launched in 2008. Neves envisioned a digital marketplace allowing consumers to access designer goods from the comfort of their homes, eliminating the need for physical stores and inventory. This approach allows the company to offer various items from different luxury fashion brands while keeping overhead costs low. Moreover, Farfetch’s expertly curated content appeals to its target audience – social, luxuriously sophisticated millennials who are passionate about fashion.
Farfetch operates as a digital marketplace, selling products from several hundred brands, boutiques, and department stores worldwide. The platform connects customers in over 190 countries and territories with items from over 50 countries and over 1,400 of the world’s best brands, boutiques, and department stores.
The platform provides a seamless navigation experience through selections of heritage brands and emerging designers, making it a go-to destination for fashion lovers. Farfetch enjoys a significant following in the United States, with 11% of U.S. second-hand apparel online shop users expressing their preference for the platform as of May 25, 2023.
Farfetch’s marketing strategy also plays a crucial role in its success. The company focuses on building brand recognition and creating a demand-generation engine that connects consumers with luxury sellers. Through editorial content and brand collaborations, Farfetch establishes itself as a valuable fashion resource, attracting luxury shoppers.
Another standout is Farfetch’s discount strategy sets it apart from other luxury marketplaces. While other platforms maintain a relatively low new discount each month, Farfetch regularly incorporates new discounts into its assortment share.
Additionally, Farfetch sells pre-owned items, typically at a fraction of the original price, further broadening its customer base. Farfetch’s business model includes taking a 30% commission from each sale made on its platform. Besides its main platform, Farfetch’s additional businesses include Browns and Stadium Goods, which offer luxury products to consumers, and New Guards Group, a platform for developing global fashion brands.
The company also offers enterprise-level solutions to the luxury industry under its Luxury New Retail initiative, which includes FARFETCH Platform Solutions that provide e-commerce and technology capabilities and in-store innovations such as the FARFETCH Connected Retail suite of technology products.
In essence, Farfetch is not just an e-commerce platform but a global connector in the luxury fashion industry, linking creators, curators, and consumers. Its mission is to empower individuality and foster a love for fashion, making it a significant player in the digital fashion marketplace.