The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — When Farfetch surprised investors by paying $675 million to acquire New Guards Group in August, the luxury marketplace emphasised that the strategy would allow it to test, launch and scale the "brands of the future."
But its immediate payoff lies more in New Guards' brand of the moment, Virgil Abloh's Off-White, which it helped launch in 2014. An outstanding question at the time of Farfetch's acquisition, however, was when that relationship would expire; New Guards controls the company that licenses Off-White's trademarks, but Abloh would be free to take his business elsewhere after that deal ends.
On Friday, Farfetch indicated it has plenty of time to develop the next Off-White: in a statement, the company told BoF New Guards’ contract with Abloh runs through 2035, and cannot be renegotiated or terminated before 2026.
That gives Farfetch at least seven years to draft off Off-White’s success. For now, those plans include increasing direct-to-consumer sales both online and in stores.
Currently, wholesale accounts for 95 percent of New Guards Group’s total sales. Farfetch plans to relaunch OffWhite.com, underpinned by Farfetch’s platform, in the fourth quarter and increase the amount of Off-White product sold on the Farfetch marketplace, as well as work more closely with Farfetch’s network of boutiques.
A representative for Off-White declined to comment on the details of the licensing agreement. At the time of the acquisition, the brand released the following statement:
“The New Guards Group transaction with Farfetch will not affect Off-White day-to-day operations as the New Guards Group team will become part of Farfetch. We look forward to our ongoing work together.”
Related Articles:
[ Why Farfetch Bought New Guards Group ]
Join us for our next #BoFLIVE on Thursday, February 16 at 15:00 GMT / 10:00 EST, based on our latest case Study How to Build a Profitable DTC Brand. BoF’s deputy editor Brian Baskin along with DTC correspondent Malique Morris and chief marketing officer of UK-based beauty brand Trinny London, Shira Feuer explore blueprints for growing a profitable brand.
The 10 themes in The State of Fashion 2023, the authoritative annual report from The Business of Fashion and McKinsey & Company, highlight how businesses can deploy realistic yet bold strategies to drive growth, even amid challenging times.
The women’s rights activist and Nobel Peace Prize winner spoke with BoF’s Imran Amed about education, growing up as an activist and the evolution of her own activism at BoF VOICES 2022.
BoF’s Imran Amed and McKinsey’s Achim Berg unpack what opportunities and challenges businesses should be on the lookout for in 2023.