Coupang, Inc., a prominent global retailer, recently unveiled its strategic acquisition plan for the business and assets of Farfetch Holdings plc, a top-tier online luxury company. With this move, Coupang is poised to emerge as a frontrunner in the expansive $400 billion global personal luxury goods segment.
The synergy of Coupang's operational excellence and innovative logistics, coupled with Farfetch's preeminent position in the luxury ecosystem, is anticipated to foster unparalleled experiences for customers, boutiques, and brands worldwide. Notably, Coupang is uniquely positioned to tap into the immense value of Farfetch within the personal luxury goods segment in South Korea, boasting the world's highest per-capita spending on such goods.
Under the terms of the agreement, Farfetch gains access to a capital injection of $500 million. This infusion will empower Farfetch to continue delivering bespoke, cutting-edge technology to exclusive brands and boutiques, as well as facilitating leading designers' access to a global consumer base.
“Farfetch is a landmark of the luxury landscape and has been a transformative force in demonstrating that online luxury is the future of luxury retail,” said Bom Kim, Founder & CEO of Coupang. “Farfetch will rededicate itself to providing the most elevated experience for the world’s most exclusive brands, while pursuing steady and thoughtful growth as a private company. We also see tremendous opportunities to redefine the customer experience for luxury clients everywhere.”
“Coupang’s proven track record and deep experience in revolutionizing commerce will enable us to deliver exceptional service for our brand and boutique partners, as well as for our millions of customers around the world,” said José Neves, Farfetch Founder, CEO and Chairman. “We are thrilled to be partnering with such a respected Fortune 200 company that is committed to investing in innovations that transform all aspects of the customer experience with Farfetch.”
Greenoaks, a leading global investment firm, played a pivotal role in the transaction, contributing substantial financial expertise and serving as Coupang's investment partner in this acquisition.
