Coupang, Inc., a global retailer, has confirmed its plans to acquire the business and assets of Farfetch Holdings plc. The acquisition, says Coupang, positions it as a leader in the US$400 billion global personal luxury goods segment.
Coupang’s operational excellence and innovative logistics, combined with Farfetch’s position in the luxury sector, will drive exceptional experiences for customers, boutiques, and brands worldwide. Coupang is also uniquely positioned to unlock Farfetch’s tremendous value for the vast personal luxury goods segment in South Korea, which has the world’s highest per capita spending on personal luxury goods.
The agreement gives Farfetch access to US$500 million of capital to continue providing exclusive brands and boutiques with bespoke, cutting-edge technology and giving leading designers access to global consumers.
“Farfetch is a landmark of the luxury landscape and has been a transformative force in demonstrating that online luxury is the future of luxury retail,” said Bom Kim, Founder & CEO of Coupang. “Farfetch will rededicate itself to providing the most elevated experience for the world’s most exclusive brands while pursuing steady and thoughtful growth as a private company. We also see tremendous opportunities to redefine the customer experience for luxury clients everywhere.”
“Coupang’s proven track record and deep experience in revolutionizing commerce will enable us to deliver exceptional service for our brand and boutique partners, as well as for our millions of customers worldwide,” said José Neves, Farfetch Founder, CEO and Chairman. “We are thrilled to be partnering with such a respected Fortune 200 company that is committed to investing in innovations that transform all aspects of the customer experience with Farfetch.”
Greenoaks, a leading global investment firm, brought substantial financial expertise to the transaction and is Coupang’s investment partner in this acquisition.
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