Kering, the luxury group home to brands such as Saint Laurent, Gucci, Bottega Veneta, and Balenciaga, has concluded its agreement with Farfetch, ceasing the direct offering of its brands from their warehouses on the Farfetch marketplace.
Farfetch intends to continue featuring premium brands by circumventing direct brand partnerships, a strategy highlighted by the Business of Fashion.
Similarly, Neiman Marcus Group has chosen not to renew its contract which would have allowed Bergdorf Goodman’s product offerings on Farfetch.
A spokesperson for Neiman Marcus stated to WWD their commitment to providing a unique luxury experience and to positioning their business for lasting and profitable growth. While appreciating their relationship with Farfetch, which remains a minority investor in the Neiman Marcus Group, they emphasized a shift in strategy.
Retail Touchpoints reported that after Farfetch’s 2022 investment of 200 million dollars in Neiman Marcus Group, with the intent of implementing Farfetch’s technological solutions, the plan has since been abandoned.
The sale of Farfetch to South Korea’s Coupang has sparked debates, with Kering’s CFO, Jean-Marc Duplaix, suggesting a shift in strategic alliances during an earnings call, as WWD reported.
The Business of Fashion notes that Farfetch primarily stocks its offerings from third-party retailers, and the company is likely focused on maintaining its luxury brand roster to prevent further impact on its reputation.