As an agreement with Richemont to acquire Yoox-Net-A-Porter keeps the industry on edge, Farfetch is focused on the next generation of tech companies dedicated to the future of luxury retail.
Who will give in, who will prevail? For several months, there have been rumors of talks between Richemont and Farfetch regarding the future of Yoox-Net-a-Porter (YNAP). The Swiss luxury goods group is said to have lost interest in YNAP. The owner of Cartier, Van Cleef & Arpels, Chloé and Alaia is said to welcome any solution that would allow him to ditch a company that has lost the technological battle, while an aggressive fund is attacking his authority by making changes to the company’s statutes group requires
As a reminder, after one of the Compagnie Financiere Richemont According to the information it has shared itself, the Swiss luxury goods group is the subject of a special filing by BlueBell Capital Partners Limited, made just days after the latest results were released. The fund complained about the mismatch between the owners of A shares, who represent 90.1 percent of the economic interests in the company, and B shares, which account for 50 percent of the voting rights with only 9.1 percent of the capital. These B shares are held entirely by Johann Rupert, who thus controls and controls the group founded by his family.
The ending of long tension over YNAP’s future would allow Richemont to quench the fund’s quest for conquest, which would like to promote Bulgari founder’s great-grandson, Francesco Trapani, to the luxury group’s board of directors. This manager had proven valuable not only at Bulgari but also at Tiffany & Co. and LVMH. The visionary company Farfetch, in which Richemont (along with Alibaba and Artemis) has invested considerable sums, would be the ideal solution to get rid of this thorn. An agreement should be imminent. The Portuguese billionaire José Neves (head of Farfetch) thus appears as an involuntary hero in an endless story.
The founder and CEO of Farfetch revolutionized online luxury fashion retail. Vanity Fair described him as the most powerful man in the business. His peers praise his keen eye and culture of benevolence.
Will he want to retake Yoox Net-A-Porter at any cost? That is not sure. YNAP, once a leader in omnichannel services and logistics for online sales, struggled to prove its business model in the early stages, while Farfetch’s 750 fashion boutiques – often small and medium-sized businesses – in 40 countries that sell their wares through the platform sell, thanks to its concession model, advanced technology and multiple payment systems. Farfetch, which has partnered with Lunu, announced in early June that it will soon accept payments in seven cryptocurrencies, including Bitcoin and Ethereum.
Looking for a new generation of technology companies in luxury retail
The priorities of José Neves’ company could be organized more around the expansion of this technological lead. In any case, this is confirmed by the new statement by Farfetch, which announces that it will support start-ups that aim to shape the future of luxury retail on the Web3. The accompaniment will take the form of an organized program of mentoring, networking and support, and will focus on digital fashion, token-based customer engagement and immersive experiences. Participation in this program is via a call for applications ending August 19th. For this 12-week program, Farfetch is partnering with Outlier Ventures in an accelerator called Dream Assembly Base Camp.
Participating startups will have access to Farfetch and Outlier Ventures’ mentoring network across fashion, tech and web3, as well as investors to support their future fundraising efforts. When José Neves founded Farfetch in 2008, the fashion industry didn’t believe in the start-up company model. It wanted to connect stores that were struggling to sell their inventory with their target audience from around the world. Since then, the entrepreneur has proven his ability to stay one step ahead of everyone. With this tender, he is suggesting that he would be better off concentrating on the fundamental challenges of Web3 than taking on a weak competitor.
This article was previously published on FashionUnited.fr. Translation and editing: Barbara Russ.