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Farfetch<\/strong>‘s investment in Neiman Marcus<\/strong> 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<\/strong>.<\/p>\n <\/p>\n The investment cements a “very strategic and deep partnership that we want between the two groups<\/em>“, Farfetch CEO Jos\u00e9 Neves<\/strong> told Reuters<\/strong><\/em> in an interview, noting that it was the biggest deal for the online retailer in the US<\/strong>.<\/p>\n <\/p>\n Farfetch Platform Solutions<\/strong> (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 (\u20ac183 million)<\/em>” to support digital growth and innovation initiatives and join Neiman Marcus’ existing investors, which include PIMCO, Davidson Kempner Capital Management and Sixth Street<\/strong>.<\/p>\n <\/p>\n The deal is a “strategic opportunity for Farfetch to differentiate itself among service providers and benefit from the strength of local US customers<\/em>“, commented Bernstein<\/em><\/strong> analyst Luca Solca<\/strong>, noting that the deal represents a consolidation of the sector.<\/p>\n <\/p>\n 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<\/em>,” says Geoffroy van Raemdon<\/strong>, CEO of the Neiman Marcus Group, tells Vogue Business<\/em><\/strong>.<\/p>\n <\/p>\n “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<\/em>,” said Neil Saunders<\/strong>, managing director of Globaldata<\/em><\/strong>. “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<\/em>” .<\/p>\n <\/p>\n <\/p>\n