Coupang Acquires 'Farfetch,' the World's Largest Luxury Fashion Platform

Expanding the Korean Luxury Market
Expected to Serve as a Bridgehead for K-Fashion Exports

Coupang's parent company, Coupang Inc., announced on the 18th (local time) that it will acquire Farfetch, the world's largest luxury fashion platform.

[Image source=Reuters Yonhap News]

Coupang Inc. emphasized that through the acquisition of Farfetch Holdings, the leading online luxury company selling 1,400 luxury brands such as Chanel and Herm?s to consumers in over 190 countries, it will establish itself as a leader in the $400 billion (520 trillion KRW) global personal luxury market. It also analyzed that South Korea, where per capita personal luxury spending is among the highest in the world, holds a unique position to realize Farfetch's tremendous value. Kim Beom-seok, founder and CEO of Coupang Inc., stated, "Going forward, Farfetch will pursue stable and prudent growth as a private company while once again focusing on providing a high-quality experience for the world's most distinctive brands."

With the acquisition of Farfetch, Coupang will strengthen its fashion and luxury lineup, which had been lacking compared to fresh food, electronics, and industrial goods. Earlier in July, Coupang launched 'Rocket Luxury,' a dedicated section for luxury beauty brands, and began early morning delivery of authenticated luxury cosmetics. The industry expects that Coupang will expand Rocket Luxury items to include luxury fashion or establish a separate dedicated section to enhance luxury sales.

This acquisition by Coupang could also increase K-fashion exports. Currently, about ten Korean brands are sold through Farfetch, including Korea's representative designer Wooyoungmi's 'WOOYOUNGMI,' Songzio (SONGZIO), Lee Myung-shin (Low Classic), Studio Tomboy (Shinsegae Inter), designer Kim In-tae's KIMHEKIM, and Jung Go-eun's 'GOEN.J.' Additionally, Coupang's logistics expertise, such as Rocket Delivery, is expected to create synergy effects with Farfetch.

Farfetch was founded in 2007 in the UK by Portuguese entrepreneur Jos? Neves (49). It rapidly grew as a platform connecting luxury brands and consumers and was listed on the New York Stock Exchange in 2018. However, with this acquisition by Coupang, it will become a private company.