The Business of Fashion Podcast
Can Farfetch Be Fixed?
Mar 4, 2025
Malique Morris, an e-commerce correspondent known for his luxury market insights, joins the discussion to unravel the challenges Farfetch faces post-acquisition by Coupang. The focus is on how aggressive cost-cutting is jeopardizing relationships with VIP customers and the brand's luxury identity. Morris argues that prioritizing profitability threatens the high-end experience that luxury shoppers expect. The conversation also touches on shifting strategies, the impact of recent partnerships, and the future outlook for this once-pioneering marketplace.
27:33
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Quick takeaways
- Coupang's aggressive cost-cutting measures threaten Farfetch's luxury customer experience, alienating high-value clients essential for profitability.
- The disconnect between Coupang's operational strategy and luxury brand partnerships risks further destabilizing Farfetch's market position and authenticity.
Deep dives
Farfetch's Shift from E-Commerce Innovator to Struggling Marketplace
Farfetch initially emerged as a pioneer in luxury fashion e-commerce when it launched in 2008, successfully curating inventory from independent boutiques. However, despite its innovative model, the company faced consistent losses, ultimately nearing bankruptcy due to its inability to achieve profitability. The challenge stemmed from significant overhead costs associated with luxury goods and rising customer acquisition expenses, compounded by a lack of competitive pricing against brands investing in their e-commerce platforms. This precarious financial position led to its acquisition by Coupang, which aimed to revitalize the struggling marketplace but required drastic changes.
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