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.
Britain’s competition watchdog on Tuesday said it was seeking comment on whether Richemont’s deal to offload most of its online fashion retailer YOOX Net-A-Porter (YNAP) to Farfetch could harm competition in the UK.
If completed, the deal announced last August would clear the way for Richemont’s labels to sign up for technology run by luxury e-commerce specialist Farfetch.
The Competition and Markets Authority said it was considering if the anticipated acquisition by Farfetch of a shareholding and certain rights over YOOX Net-A-Porter Group may lead to a “substantial lessening” of competition within any market or markets in Britain.
Richemont, maker of Cartier jewelry and IWC watches has said it expects a 2.7 billion euro ($2.93 billion) writedown related to the agreement in which Farfetch will initially acquire a 47.5 percent stake, in exchange for over 50 million Farfetch shares.
The deal comes amid a flurry of industry-wide investments in digital services as luxury players shrug off past skepticism and embrace new channels to reach customers, spurred by a faster shift to online consumption during the pandemic.
Learn more:
Will the Farfetch-YNAP Deal Work? It’s Complicated.
This week, Richemont sold a big stake in loss-making Yoox Net-a-Porter to rival Farfetch, giving the fashion platform a major boost. But it’s hard to make money in online luxury, where the path to profitability remains challenging.
In partnership with Scott, Audemars Piguet is set to release a limited-edition version of its Royal Oak watch and a capsule collection of co-branded merchandise from the watchmaking house and Cactus Jack Records.
Farfetch’s chief executive José Neves is reportedly conferring with top shareholders, including Richemont and Alibaba, and JP Morgan about delisting the company, The Telegraph reported on Tuesday. A take-private deal could happen imminently as Farfetch’s stock remains under pressure, according to the report. The e-tailer’s share price has plummeted more than 80 percent since its 2018 IPO.
At The Business of Fashion’s VOICES 2023 gathering, Chanel’s global CEO Leena Nair outlined to BoF founder Imran Amed the vision she’s crafted during her first two years leading the iconic brand.
Across its 53-year history, international art fair Art Basel has been quick to innovate, catering to a rapidly developing art market and its customers. Today, it is utilising its expertise to help fashion and luxury do the same.