Once cut-throat competitors, now collaborators: The rise of the Farfetch and YOOX Net-a-Porter Deal
The state of competition within the fashion industry has shifted. E-commerce giant Farfetch has made a bold move in the business sector, taking a 47.5% stake in one of its rival franchises, the YOOX-NET-A-PORTER Group.
There’s no doubt that Farfetch has undertaken an extraordinary journey within the fashion sphere. Founded by Jose Neves in 2008, the site was set up with the aim to harmonise the world of e-commerce, by powering the digital backend of the industry.
Today, the e-commerce site operates in more than 50 countries, with over 1,400 brands, boutiques and department stores available on the marketplace.
Farfetch’s vision? To become the world’s ‘global’ marketplace for high-end fashion, ‘connecting creators, curators and consumers’ in luxury fashion. It’s a big deal and one that will play a major role in altering the state of the e-commerce field.
Technology is seen as the major growth engine and unique selling point for Farfetch to reach this vision; the company’s digital platform, stretching from stock management to end-to-end commerce solutions has been specifically designed and tailored for the luxury market.
But the brand’s digital roadmap doesn’t stop there. Just last week Farfetch announced another advance in their digital toolkit, now pairing up with shopping app Fashion Concierge; this partnership will enable ‘exclusive clients’ to source unique, rare and ‘hard-to-find pieces’ not yet available on their marketplace. This new partnership alongside YNAP both reinforces and solidifies Farfetch’s digital focus.
Yet this collaboration deal also comes at an intriguing time in the industry, where some corporations have decided to opt out of engaging with multi-brand platforms. French-based luxury group, Kering announced that they will not be engaging with any more wholesale deals, whilst Chanel, Hermes and Louis Vuitton continue to refuse to sell on multi-brand sites. Amidst this changing retail landscape, Farfetch’s aim still remains abundantly clear: the online fashion sphere is theirs to dominate.
