New York-listed e-commerce company Coupang said Tuesday it will acquire British online luxury fashion retailer Farfetch Holdings in a deal that brings Coupang the leading position in the $400 billion global personal luxury goods market.
The deal will provide Farfetch with $500 million in capital to continue its operation, Coupang said in a statement.
“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,” Coupang CEO Kim Bom said in the statement.
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, he said.
The British firm has operated an online platform selling high-end fashion and jewelry and it has been struggling with weak sales amid an economic slowdown.
“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 around the world,” Farfetch founder and CEO Jose Neves said.
Coupang’s businesses range from food delivery and video streaming to payment services and operate in markets that include Korea, Singapore, China and India.
The e-commerce giant plans to combine its logistics expertise with Farfetch’s know-how in high-end brands to make a presence in the rapidly growing luxury goods market in Korea. (Yonhap)