FARFETCH Acquires Luxury Resale Platform LUXCLUSIF

Rhea-AI Summary

FARFETCH Limited (NYSE:FTCH) has acquired resale platform LUXCLUSIF to enhance its resale capabilities. The acquisition includes LUXCLUSIF's technology and team, enabling FARFETCH to accelerate its FARFETCH Second Life service with features like automated pricing and quicker market expansion. LUXCLUSIF, founded in 2013, specializes in the authentication and sale of pre-owned luxury goods. This partnership aims to position FARFETCH as a leader in the growing pre-owned luxury market, which is expanding three times faster than the primary market.

Positive

• Acquisition of LUXCLUSIF enhances FARFETCH's resale technology and capabilities.
• Accelerates the development of FARFETCH Second Life with automated pricing and faster expansion.
• Strengthens FARFETCH's position in the rapidly growing pre-owned luxury market.

Negative

• None.

LONDON--(BUSINESS WIRE)-- FARFETCH Limited (NYSE:FTCH), the leading global platform for the luxury fashion industry, today announced that it has acquired resale platform LUXCLUSIF for an undisclosed sum. The acquisition includes LUXCLUSIF’s technology platform, and the LUXCLUSIF team will join FARFETCH group. This will allow FARFETCH to significantly accelerate its resale capabilities through the development of key technology and service features such as automated pricing, and faster geographic and category expansion of its resale service, FARFETCH Second Life.

Founded in 2013, LUXCLUSIF is a B2B service provider with a successful turnkey solution enabling the acquisition, authentication and sale of second hand luxury goods to and from auctions, retailers, e-commerce platforms, and stores worldwide. Together, FARFETCH and LUXCLUSIF can leverage these capabilities and positioning to become the global platform for pre-owned luxury for both customers and industry partners.

FARFETCH has worked closely with LUXCLUSIF for a number of years, first through its start-up accelerator program and most recently through FARFETCH’s resale service, FARFETCH Second Life. For Second Life, LUXCLUSIF provided the platform in Europe to authenticate, price and then onsell pre-owned handbags submitted to the programme by customers in exchange for FARFETCH credit. Following completion of the transaction, the LUXCLUSIF team will operate FARFETCH’s Second Life platform service, integrating both existing and new partners into the program. Additionally, LUXCLUSIF will continue to sell pre-owned product they acquire from specialist suppliers and luxury consumers through Second Life or similar programs they operate for other luxury industry partners. They will also be able to operate white-label pre-owned propositions for FARFETCH Platform Solutions brand partners.

Giorgio Belloli, Chief Commercial and Sustainability Officer, FARFETCH said:
“LUXCLUSIF joining the FARFETCH group allows us to expand the company’s pre-owned offer for our customers, for brand and retail partners and for other suppliers of pre-owned products. We aim to become the leading global platform for pre-owned luxury. The pre-owned market is growing extremely fast and is increasingly important to both luxury customers and to the luxury fashion industry as a whole. FARFETCH’s Conscious Luxury Trends Report 2020 showed that more than half of our customers have bought or sold pre-owned in the last year and industry estimates suggest the pre-owned category is growing three times faster than the primary market.

“LUXCLUSIF will help us accelerate our capabilities and reach in this area. Having supported LUXCLUSIF as a start up, bringing them into the FARFETCH family marks an exciting culmination in our work to support and develop some of the world’s most exciting fashion and retail tech start-ups.”

Rui Rapazote, Co-founder and Chief Executive Officer, LUXCLUSIF, said:
“FARFETCH is the ideal home for LUXCLUSIF as we seek to scale even further. Together, we are very much focused on growing the resale market through innovation and tailored solutions. LUXCLUSIF’s culture of continuous experimentation and innovation will continue to be nurtured and I am very excited about the potential for creating and delivering valuable turnkey solutions to a growing cohort of global partners. This will allow us to meet our goal of becoming the preferred partner for luxury brands and retailers through leading market innovation and the implementation of data backed solutions within resale.”

Guilherme Faria, Co-founder and Chief Operating Officer, LUXCLUSIF, said:
“FARFETCH and LUXCLUSIF share a vision of a cleaner, conscious, circular and inclusive fashion industry and we are also aligned as tech enablers and industry leaders in our fields. We believe that we now have the opportunity to be the global leader in resale technology by joining FARFETCH, with its size, reach and recognition within the fashion industry. We have a very exciting journey ahead.”

About Farfetch

Farfetch Limited is the leading global platform for the luxury fashion industry. Founded in 2007 by José Neves for the love of fashion, and launched in 2008, Farfetch began as an e-commerce marketplace for luxury boutiques around the world. Today, the Farfetch Marketplace connects customers in over 190 countries and territories with items from more than 50 countries and more than 1,400 of the world’s best brands, boutiques and department stores, delivering a truly unique shopping experience and access to the most extensive selection of luxury on a single platform. Farfetch’s additional businesses include Browns and Stadium Goods, which offer luxury products to consumers, and New Guards Group, a platform for the development of global fashion brands. Farfetch offers its broad range of consumer-facing channels and enterprise level solutions to the luxury industry under its Luxury New Retail initiative. The Luxury New Retail initiative also encompasses Farfetch Platform Solutions, which services enterprise clients with e-commerce and technology capabilities, and innovations such as Store of the Future, its connected retail solution.

For more information, please visit www.farfetchinvestors.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211209005124/en/

Media:

Susannah Clark

VP Communications, Global

susannah.clark@farfetch.com

+44 7788 405224

Brunswick Group

farfetch@brunswickgroup.com

US: +1 (212) 333 3810

UK: +44 (0) 207 404 5959

Investor Relations:

Alice Ryder

VP Investor Relations

IR@farfetch.com

Source: FARFETCH Limited

FAQ

What is the purpose of the FARFETCH acquisition of LUXCLUSIF?

The acquisition aims to enhance FARFETCH's resale capabilities and position it as a leader in the pre-owned luxury market.

When was the LUXCLUSIF acquisition announced?

The acquisition was announced on the date of the press release, recently in October 2023.

How will FARFETCH benefit from LUXCLUSIF's technology?

FARFETCH will leverage LUXCLUSIF's technology to improve automated pricing and expedite the geographic and category expansion of its resale service.

What impact does the acquisition have on FARFETCH Second Life?

The acquisition allows for accelerated development of FARFETCH Second Life, integrating LUXCLUSIF's technology and team into the service.

What does LUXCLUSIF bring to FARFETCH's business model?

LUXCLUSIF provides expertise in the acquisition, authentication, and sale of second-hand luxury goods, enhancing FARFETCH's overall offerings.