As a loyal Net-A-Porter customer, luxury multi-brand pure players are the modern way to shop. Except this time, I could not help but notice Farfetch taking the pure playing, multi-brand, fashion AND distribution industries by storm.
So what is so special about Farfetch?
Farfetch is luxury multi-brand website, what makes the company so unique is that it is a curated online fashion platform which connects with carefully selected products from a large network of independent boutiques. The business takes 25% commission from its partners and was valued at $1 billion in 2015. The company’s structure is based around its partnership with local boutiques and brands from cities around the world and acts as a platform for these sellers to display items, relying on them to curate product and manage inventory. The company also considers its omnichannel offering as e-commerce and traditional retailing are continually merging within the industry as part of the retail experience. The model Farfetch uses is structured around distributed stock, where the inventory is made up of the business’ 477 boutiques worldwide. These act at micro-warehouses where stock is distributed across a global network of stores rather than a large isolated warehouse. The stock is shipped directly from stores and has the same software module installed in each boutique.
This model is changing the fashion industry and is beginning to give the wholesale model a run for its money, a potential game changer for online pure players and department stores.
With this new found love for Farfetch, as well as doing my Fashion Management dissertation based around its logistic business model (contact me for details), I couldn't help but make a few purchases.
(Dress: Zara; Boots: Missguided)
My first purchase was a pair of red suede Soludos espadrilles (£80) which were distributed from Brown’s Boutique in London, United Kingdom (Boutiques located on Molton Street, Mayfair, London & Sloane Street, Belgravia, London). The second purchase were a pair of Castañer Carina espadrilles (£103) which were distributed from Biffi Boutique in Milan, Italy (Boutique located on Corso Genova, Milano, Italy).