In the space of a year, Farfetch has become the one to watch in luxury e-commerce, a position confirmed by the billion-dollar investment by Richemont and Alibaba in the company, which is still reporting losses, and by its share price performance. In the twelve months to February 18, Farfetch stock gained almost 450%.
Articles on the subject:
Switzerland’s Richemont, China’s Alibaba and France’s Artémis (Kering) are to invest over a billion dollars in British marketplace Farfetch in a bid to dominate the Chinese online luxury market. The race with Amazon is on.
Half-year results for the main luxury groups show that sales fell by between 25% and 45%. Signs of an upturn are beginning to appear, in particular at points of sale.
Released mid-March, the third Morgan Stanley report, in collaboration with LuxeConsult, on the Swiss watch market shows that out of some 350 brands, the bulk of growth in 2019 came from the seven whose turnover exceeds CHF 1 billion. The analysis also highlights the outperformance of privately owned brands.
The gap continues to widen between luxury watches and entry-level, resulting in a slight increase in total export value alongside a drastic decline in volume. Suppliers suffer as the sector becomes increasingly consolidated.
Patrick Pruniaux, CEO of Ulysse Nardin and Girard-Perregaux, believes watch brands, irrespective of size, fall into two categories: the exciting ones and the others. We found out more at Dubai Watch Week.