Coupang Acquires Farfetch in Strategic Move to Boost Online Luxury Retail Market Presence
The main goal behind this acquisition is to meld Coupang's operational and logistical prowess with Farfetch's established luxury market presence. This merger is expected to enhance customer experiences globally and notably expand Coupang's influence in the South Korean luxury goods market, which is notable for its high per-capita spending. South Korea's luxury goods market stands out, with consumer spending at USD 325 per capita per year, the highest globally, according to Morgan Stanley's 2023 research.
The USD 500 million deal will provide Farfetch with a much-needed alternative to bankruptcy. This lifeline, in the form of bridge loans from Greenoaks Capital Partners, will help Farfetch avoid financial insolvency, a fate it was facing even with a potential deal with Richemont involving a minority stake in Farfetch and a stake in Richemont’s Yoox Net-A-Porter platform.
Coupang’s CEO, Bom Kim, emphasized Farfetch's role as a transformative force in online luxury retail, foreseeing the acquisition as a means to redefine luxury client experiences globally. José Neves, Farfetch’s CEO, echoed this sentiment, anticipating enhanced service for Farfetch’s partners and customers through Coupang's commerce expertise.
Adding to this business narrative is the eCommerce platform market, forecasted to grow from USD 7.1 billion in 2023 to USD 13.5 billion by 2028, at a CAGR of 13.8%. The growth drivers include increasing internet penetration, which has revolutionized shopping behavior, and a surge in investment in the eCommerce space. However, the market faces challenges such as cybersecurity risks and high customer acquisition and retention costs in a competitive environment. Prominent players in this arena include Shopify, Wix, eBay, Etsy, Square, Oracle, Amazon, and Adobe.
MarketsandMarkets Industry News Desk
Letter to EditorGET AHEAD
Top Research Reports to Fuel Your Industry KnowledgeEditor's Pick
Information and Communication Technology
Insurtech Funding News - Coverdash raises USD 13.5 Million
PODCASTS
Sustainable Digital Transformation & Industry 4.0
Sanjay Kaul, President-Asia Pacific & Japan, Cisco, and host Aashish Mehra, Chief Research Officer, MarketsandMarkets, in conversation on unraveling 'Sustainable Digital Transformation and Industry 4.0'
11 July 2023|S2E12|Listen Now
Generative AI
Prasad Joshi, Senior Vice President-Emerging Technology Solutions, Infosys, and host, Vinod Chikkareddy, CCO, MarketsandMarkets, in exploring the recent advances in AI and the generative AI space.
7 Nov 2023|S2E13|Listen Now
eCommerce platform market
Download Whitepaper
South Korea's luxury goods market stands out, with consumer spending at USD 325 per capita per year.
The USD 500 million deal will provide Farfetch with a much-needed alternative to bankruptcy.
Follow IndustryNews by MarketsandMarkets
