Farfetch: how to stay ahead of the curve in luxury e-commerce

The case discusses the strategic decisions that Farfetch should adopt at the end of 2018, when it was emerging as a leader in luxury e-Commerce. This market segment was rapidly evolving and was subject to changing technology and shifting consumer preferences and tastes. Farfetch had achieved a unique positioning thanks to its business model, which consisted in making third-party sellers, from tiny boutiques to global brands and retailers, list products on the site. Farfetch processed sales and handled the logistics but did not take inventory. Farfetch already had many of the world's best boutiques on the platform and sourced inventory directly from such brands as Gucci. However, Farfetch faced competition from luxury brands, that had their own stores and could decide to put their online business under direct control, and had greater brand recognition, established consumer and supplier relationships and significantly greater financial, marketing and other resources. The other online retailers and marketplaces, including start-ups, were constantly introducing new services and pricing products aggressively. Farfetch had just announced the acquisition of sneaker and streetwear marketplace Stadium Goods, its first move since going public on the New York Stock Exchange in September 2018. It was no secret that Farfetch had the ambition to go after the entire luxury fashion market. The founder, Jose Neves, believed that a single company was going to dominate online luxury retail and he wanted Farfetch to be this company. However, many threats had to be dealt with. The case asks whether the strategy of Farfetch in face of these market challenges was adequate and what moves Neves should take to further grow the business.