Farfetch has taken strategic steps to refocus its business operations and enhance its core marketplace services.
- The luxury fashion platform has decided to close its white-label business unit, Farfetch Platform Solutions.
- This unit served high-profile clients like Reebok and Off-White, offering retail technology solutions.
- The decision aligns with Farfetch’s restructuring efforts post-acquisition by the Korean conglomerate Coupang.
- The move is part of broader cost-saving measures, including significant workforce reductions earlier this year.
Farfetch has strategically chosen to close its white-label business unit, known as Farfetch Platform Solutions. This decision aligns with the company’s aim to prioritise its core luxury fashion marketplace operations. By discontinuing this division, the company intends to streamline its focus and operations under the new ownership structure provided by Coupang.
Farfetch Platform Solutions was known for providing commerce solutions and retail technology to a clientele list that included renowned names such as Reebok, Harrods, Paul Smith, and Off-White. This decision, therefore, marks a significant shift in the company’s operational focus from offering tech solutions to enhancing its core marketplace services.
Earlier this year, Farfetch announced a series of cost-saving measures, which included making redundancies affecting between 25% and 30% of its workforce. The closure of Farfetch Platform Solutions can be seen as an extension of these cost-saving strategies as the company refocuses its resources.
This decision follows the transition of Farfetch’s ownership to the Korean conglomerate Coupang, in a $100 million (£767 million) deal. Following the acquisition, Coupang’s founder, chairman, and CEO, Bom Kim, took over the role from Farfetch’s original founder and CEO, José Neves. This leadership change is indicative of a broader strategic shift within the company.
With operations spanning over 190 countries, including partnerships with over 500 fashion boutiques globally, Farfetch remains committed to delivering top-notch luxury experiences. In the UK, Farfetch has partnerships with notable retailers such as Harvey Nichols and Kershkicks, reinforcing its significant presence in the luxury fashion market.
Farfetch’s decision to close its white-label business unit signifies a clear shift towards focusing on and strengthening its core luxury fashion marketplace.
