Farfetch has decided to close its white-label business unit, Farfetch Platform Solutions, shifting focus back to its main luxury fashion marketplace.
- This decision comes under the ownership of Korean conglomerate Coupang, signaling a major strategic shift for the company.
- Farfetch Platform Solutions, which served notable clients like Harrods and Reebok, was part of a wave of company-wide redundancies.
- Coupang’s acquisition of Farfetch involved management changes, with Bom Kim replacing José Neves as CEO in February 2024.
- Farfetch aims to strengthen its global luxury marketplace, partnering with over 500 boutiques worldwide.
In a strategic move, Farfetch has announced the closure of its white-label business unit, Farfetch Platform Solutions. This decision reflects Farfetch’s renewed focus on its core luxury fashion marketplace. Under the ownership of Korean conglomerate Coupang, Farfetch is realigning its business operations to concentrate on its primary market offerings.
The closure of Farfetch Platform Solutions, which catered to prestigious clients including Harrods, Reebok, and Off-White, marks a significant shift in the company’s business model. The platform provided advanced commerce solutions and retail technology tailored for brands and retailers. However, earlier this year, this division was subject to redundancies, contributing to corporate cost-cutting measures where Farfetch reduced its workforce by approximately 25% to 30%.
The $100 million acquisition of Farfetch by Coupang was a pivotal moment for the company as it grappled with financial challenges disclosed in December 2023. Following this acquisition, leadership changes were implemented, with Coupang’s CEO Bom Kim taking over from Farfetch’s founder and CEO José Neves in February 2024.
A spokesperson for Farfetch highlighted the company’s commitment to enhancing luxury shopping experiences by focusing on its marketplace. They emphasized delivering top-tier selection, service, and savings for customers while fostering extraordinary experiences for brands and boutiques. “Our disciplined investment and operational excellence enable us to deliver exceptional shopping experiences to our customers,” stated the spokesperson.
Farfetch continues to leverage its extensive global presence, partnering with over 500 fashion boutiques across regions including Europe, the Americas, the Asia-Pacific, the Middle East, and West Africa. In the United Kingdom alone, it collaborates with 30 notable retailers such as Harvey Nichols and Kershkicks, reinforcing its market position.
Farfetch’s strategic shift underscores its commitment to maintaining luxury marketplace leadership globally.
