SEOUL, South Korea - Coupang, Inc., a New York-listed e-commerce giant, has announced its plan to acquire British online luxury fashion retailer Farfetch Holdings. This move is set to position Coupang prominently in the $400 billion global personal luxury goods market.
According to Yonhap News Agency, The acquisition deal includes a $500 million capital provision for Farfetch to continue its operations, as detailed in Coupang's statement. Coupang CEO Kim Bom-suk emphasized the significance of Farfetch in the luxury retail landscape, noting its role in demonstrating the future of luxury retail in the online space.
Farfetch, known for its online platform that sells high-end fashion and jewelry, has faced challenges with sales amid economic slowdowns. As a private company under the new arrangement, Farfetch plans to focus on offering premium experiences for exclusive brands while pursuing stable and strategic growth.
Farfetch founder and CEO Jose Neves expressed confidence in the partnership with Coupang, highlighting the potential for enhanced service delivery to their brand partners and global customer base.
Coupang operates in various sectors, including food delivery, video streaming, and payment services, and has a presence in markets like South Korea, Singapore, China, and India. The company aims to leverage its logistics expertise alongside Farfetch's luxury brand knowledge to establish a significant presence in the burgeoning South Korean luxury goods market.