Now Reading
Why did Farfetch decide to invest in Neiman Marcus ?

Why did Farfetch decide to invest in Neiman Marcus ?

Online luxury goods retailer Farfetch has announced that it will invest nearly $200 million in the Neiman Marcus Group.

 

Farfetch‘s investment in Neiman Marcus comes as luxury groups scramble to meet strong demand for high-end fashion and accessories in the US, which emerged as the sector’s key market last year, boosted by a rapid rebound in local consumption.

 

The investment cements a “very strategic and deep partnership that we want between the two groups“, Farfetch CEO José Neves told Reuters in an interview, noting that it was the biggest deal for the online retailer in the US.

 

Farfetch Platform Solutions (FPS) will revamp and power the website and mobile app for Neiman Marcus Group’s Bergdorf Goodman brand. Farfetch will also make a minority investment in NMG of “up to $200 million (€183 million)” to support digital growth and innovation initiatives and join Neiman Marcus’ existing investors, which include PIMCO, Davidson Kempner Capital Management and Sixth Street.

 

The deal is a “strategic opportunity for Farfetch to differentiate itself among service providers and benefit from the strength of local US customers“, commented Bernstein analyst Luca Solca, noting that the deal represents a consolidation of the sector.

 

The partnership with Farfetch will allow the company to enhance the customer experience and extend its global reach : “Being on the platform allows us to go even further in how we brand the experience on [Bergdorf Goodman’s e-commerce site] and how we show the product assortment. Their architecture is the best there is,” says Geoffroy van Raemdon, CEO of the Neiman Marcus Group, tells Vogue Business.

 

See Also

For Farfetch, the addition of Neiman Marcus gives them access to a physical retailer that has long had its finger on the pulse of American luxury,” said Neil Saunders, managing director of Globaldata. “It will also allow them to learn more about how consumers shop across channels – a possible prelude to further advances in physical or omnichannel retailing” .

 

 

Read also> BARBIE X BALMAIN: NEIMAN MARCUS OPENS AN EXCLUSIVE POP-UP IN DALLAS

 

Featured photo : © Shutterstock

What's Your Reaction?
Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

COPYRIGHT 2021 LUXUS + ALL RIGHTS RESERVED

Scroll To Top