brands while pursuing steady and thoughtful growth as a private company.” “This acquisition positions Coupang as a leader in the US$400 billion global personal luxury goods segment,” Kim added.  On the deal, Marie Driscoll, an expert on luxury retail and founder and chief analyst at Driscoll Advisors, noted, “Coupang has come to the rescue of Farfetch with its US$500 million cash influx, which hasn’t realized positive earnings before interest, taxes, depreciation, and amortization (EBITDA) since 2015 as the company pursued multiple growth strategies with a string of investments that proved a distraction to the core luxury platform connecting consumers with thousands of boutiques offering sought after designs.” Driscoll also pointed out that “the transaction takes Farfetch out of the public eye and eliminates the need for quarterly financial reporting and gives Farfetch the time to take inventory of corporate assets and eliminate the distractions and thus focus on creating a profitable luxury e-commerce platform.” Farfetch has experienced a challenging past few years, with reported adjusted losses of US$30.6 million in the first half of 2023 alone and an over 90 per cent loss in value since the company’s listing five years ago. Farfetch was allegedly seeking out financially profitable deals with companies like luxury group Richemont to ensure its future. The deal has since been terminated by Richemont, and the company has recently stated that “it is reasonable to expect that the US$300 million convertible senior notes issued by Farfetch Limited to Richemont in November 2020 will not be repaid.” Is Coupang the right choice to take over Farfetch? As Neil Saunders, managing director and retail analyst at GlobalData, noted, “The acquisition of Farfetch provides the company with the funding it needs to keep going… For Coupang, which operates a marketplace along with supporting logistics, the deal makes sense as it doesn’t currently operate all that strongly in luxury fashion. So Farfetch is additive to its business. Coupang is also used to providing logistics and services to third parties, so could continue and enhance this part of Farfetch’s operation.” Saunders added that “Coupang’s logistic expertise will also be useful for Farfetch and it is likely that there will be some economics of scale and savings here over the medium term. However, I think this deal is more than about logistics. Farfetch has been desperate to find a buyer to save it, whereas Coupang likely sees this as an opportunity to expand its offering and capabilities in the fashion space.” Driscoll seconded Saunders’ belief that Coupand and Farfetch may be a successful duo. “Coupang is a good partner, first because they stepped up when others failed to do so, but second, because Coupang understands Farfetch’s core competency of technology, desires its competitive advantage of luxury brands and clientele, and can facilitate the requisite logistics for Farfetch to scale,” she explained.  However, Saunders cautioned that “Coupang will need to ensure it understands the nuances and specifics of luxury fashion…Coupang will also need to work hard to convince luxury labels which use Farfetch’s services that it is able to look after their interests.” José Neves, founder, CEO and chairman at Farfetch, who will be remaining on the board, is confident in Coupang’s ability to move the luxury retailer forward. In a statement, Neves noted that “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.” Neves elaborated, stating, “We are thrilled to be partnering with such a respected Fortune 200 company that is committed to investing in innovations that transform all aspects of the customer experience with Farfetch.”