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Inside Coupang’s Tug of War With Farfetch

A year into its ownership of the embattled luxury e-tailer, the South Korean e-commerce giant is whipping Farfetch into shape, reaching near breakeven in its latest quarter. But company insiders say Coupang has gone from cutting fat to cutting muscle, stripping Farfetch of its ability to compete for the attention and dollars of key ultra-wealthy shoppers who account for 30 percent of its annual sales.
Images from Khaite, Ferragamo, Jimmy Choo, Totme and Bally
Coupang is leading Farfetch to profitability but stripping it of its luxury lustre in the process, according to current and former employees. (BoF Studio)

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Further Reading

Farfetch Found Its White Knight. What’s Next?

The South Korean e-commerce firm Coupang has saved Farfetch from potential bankruptcy, and could use its logistical and marketing might to solve some of the luxury e-tailer’s seemingly intractable problems. But “everything stores” have a spotty track record when it comes to high-end retail.

Luxury E-Commerce: Who’s Surviving and Why

Experts say Mytheresa, Ssense and Moda Operandi have kept afloat in a challenged space by honing in on a particular consumer, curating their assortments and executing on retail basics. Still, the road ahead is tough, and the bigger they get, the harder it will be to sustain these strategies.

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