FARFETCH Group

In its home market of South Korea, the rapid-delivery e-commerce giant sells everything from fashion and beauty products to groceries and a video streaming service.

Once thought of as long-term disruptors who would change the way we shop forever, multi-brand online retailers that sell cosmetics, skincare, fragrance and more are facing multiple headwinds.

The e-commerce giant is seeking a cash injection to avert a collapse that could send shockwaves across the fashion industry. So far nobody has come to the table and time is running out, but founder Jose Neves may yet have a move up his sleeve.

The luxury marketplace had hoped to take a “leading position” in the space when it launched cosmetics, skin care and hair care in April 2022 but found it harder than expected to attract shoppers.

Amid a fast-shifting luxury e-commerce landscape, it appears the stakes have only risen for all the players involved in the deal — adding a new layer of urgency that things go off without a hitch.

The Swiss luxury group is spinning off Yoox Net-a-Porter in a joint venture with fashion platform Farfetch. What does it mean for Richemont, Farfetch, YNAP and the luxury industry at large? BoF dissects the deal.

The Swiss group will sell an additional 3.2 percent to Symphony Global, leaving YNAP without a controlling shareholder. The deal paves the way for Farfetch to potentially take control of the loss-making e-tailer, the companies said.

As the industry consolidates further, the online luxury platform will invest up to $200 million in the American department store group, powering its tech in the hopes of gaining a stronger grip on the US market.

This week, everyone will be talking about a packed schedule in Milan, Farfetch’s results and its ongoing talks with Richemont, plus the OECD’s annual forum on responsible supply chains.

The luxury fashion platform sees an opportunity in beauty that has eluded many others.