After years of speculation, designer e-tailers are finally consolidating in an effort to increase profits and gain market share. BoF’s Robert Williams and Tamison O’Connor unpack what’s in store for major players including Farfetch, YNAP and MatchesFashion.
The launch of Net-a-Porter in 2000 changed fashion forever, heralding the first phase of luxury e-commerce, and inspiring a slew of competitors to get in the game. But in an increasingly competitive market, e-tailers have struggled to retain pricing power and turn a profit. Now, the space is starting to see some consolidation. In August, Farfetch took a stake in Yoox-Net-a-Porter Group, which laid the groundwork for an eventual acquisition, and allowed Richemont to offload the platform — which had long weighed on its portfolio.
“This deal is a pretty major step for Farfetch in terms of setting up the platform to solidify a dominant position… YNAP was Farfetch’s biggest competitor,” said Tamison O’Connor, BoF luxury correspondent.
Join BoF Professional today with our exclusive podcast listener discount of 25% off an annual membership, follow the link here and enter the coupon code ‘debrief’ at checkout.
Want more from The Business of Fashion? Subscribe to our daily newsletter here.
Follow The Debrief wherever you listen to podcasts.
Hosted on Acast. See acast.com/privacy for more information.