Farfetch is closing its white-label business unit to concentrate on luxury fashion.
- Farfetch Platform Solutions, serving big names like Reebok and Harrods, will cease operations.
- This decision follows extensive workforce reductions earlier this year.
- Farfetch was recently acquired by Coupang for $100 million due to financial troubles.
- The company aims to enhance luxury customer experiences globally under new leadership.
Farfetch has officially announced the closure of its white-label business unit known as Farfetch Platform Solutions. This division, which provided retail technology and commerce solutions for prestigious clients such as Reebok, Harrods, and Paul Smith, will be shuttered as the company seeks to consolidate its focus on its primary marketplace for luxury fashion.
Earlier in 2024, Farfetch Platform Solutions was significantly affected by a series of workforce reductions, with the parent company cutting up to 30% of its staff as part of a broader cost-saving strategy. This move was indicative of Farfetch’s underlying financial struggles, which had come to light in late 2023, culminating in the sale of the company.
In a strategic acquisition, Farfetch was sold to the Korean conglomerate Coupang for a substantial sum of $100 million (£767 million). Following this acquisition, Bom Kim, Coupang’s founder, chairman, and CEO, took the helm as Farfetch’s CEO, succeeding José Neves. This leadership change marks a pivotal shift in Farfetch’s corporate strategy.
According to a spokesperson from Farfetch, the company’s commitment to disciplined investment and operational excellence positions it to deliver superior shopping experiences. The focus remains on enhancing the luxury marketplace for customers, brands, and boutiques, supporting more than 500 fashion boutiques across 190 countries.
Farfetch is further committed to strengthening its partnerships in the UK, collaborating with 30 retailers, including notable names such as Harvey Nichols in London and Kershkicks in Manchester. This strategic realignment under Coupang’s ownership is designed to optimise the company’s market presence and service delivery.
Farfetch’s strategic shift underscores its commitment to refining luxury experiences amidst significant organisational changes.
