Farfetch, founded in 2007, is the leading technology platform for the global luxury fashion industry. It operates a global luxury marketplace that connects over 1.1mn consumers in 190 countries to over 980 luxury sellers.
Strengths & Opportunities
Growth of eCommerce and generational shift to offer long-term secular tailwinds
Steady growth and market share gains
Decreasing customer acquisition costs
Customer retention and increasing LTV
Risks & Concerns
Crowded industry with competitors including online marketplaces, aggregators, luxury retailers and Amazon
Alibaba and JD.com investing in their own luxury eCommerce platforms in China - the growth engine
Take rate may be pressured
History of losses and cash burn, which may continue to be a concern over the next few years
