Farfetch backs Neiman Marcus as it eyes online growth

Online fashion retailer Farfetch is to invest up to $200 million in Neiman Marcus Group (NMG).

The announcement comes as the latter, which filed for bankruptcy in the wake of the Covid-19 pandemic, looks to boost its online business.

Farfetch joins existing investors including PIMCO, Davidson Kempner Capital Management, and Sixth Street.

NMG will use the proceeds to accelerate growth and innovation through investments in technology and digital capabilities.

Farfetch will power the website and mobile application of Bergdorf Goodman, the New York-based luxury department store that Neiman Marcus acquired in 1972.

Both Bergdorf Goodman and Neiman Marcus will join Farfetch's online marketplace, adding brands in key markets globally.

“I believe the US luxury market is at a pivotal point,” says José Neves, Farfetch Founder, Chairman and CEO.

“Whilst the US is proving to be a long lasting source of growth for the luxury industry, fuelled by younger generations who are highly engaged with the category, businesses will have to significantly upgrade their digital capabilities – powering both online and offline customer journeys – to meet these new customer expectations and stay ahead in what is going to be a competitive space in the coming years.”

Neves adds: “I greatly admire NMG, for its distinguished role in our industry both with Neiman Marcus and Bergdorf Goodman, and also for its stellar management team.”

“We share the same unwavering vision for the future of luxury, with the customer at the centre of all we do.”

“This partnership is about revolutionising the luxury landscape globally, both online and offline, by combining NMG’s iconic presence in the US and our Luxury New Retail vision and technology.”

RTIH Innovation Awards

Farfetch was among the companies who emerged victorious at RTIH’s 2021 retail technology awards.

The awards, sponsored by PMC, StoreSpace, Critizr, Marxent, QVALON and Selazar, celebrate global tech innovation in a fast moving omnichannel world.

We received a record number of submissions in 2021 across 14 categories (you can find a full rundown of the 2021 shortlists here).

Our winners and highly commended companies were announced during an exclusive event that took place in central London during December and was attended by retailers, members of our judging panel, and sponsors.

Farfetch picked up the Most Innovative Pureplay gong for marking the launch of pre-order collections on its e-commerce platform by partnering with fashion startup DRESSX to digitally dress its global community of influencers and produce virtual editorial shoots, for the first time ever.  

It also announced a donation programme for customers in the US. 

thredUP’s Resale-as-a-Service will power the experience, allowing customers to extend the life of their clothes while earning shopping credit and raising money for charity. 

Snap, meanwhile, lifted the lid on a virtual try-on partnership with Farfetch.

What our judges had to say…

Mike Cadden, IT Director (Sales, Marketing and Customer Services), Office Depot: “There were a number of factors behind the choice of Farfetch in this category. The two key ones were the integrations and innovations with thredUP and Snap.”

“The thredUP collaboration is a great example of offering the consumer a mechanism to recycle used goods and is in line with driving the Cyclical economy and the ESG agenda that is so important now to consumers.”

“With returns being a major drain on a pureplay’s profits, the Snap integration and ability to “virtually” try on products will reduce the requirement to order too many product only with the intention of returning the majority of them. As a side effect, also improving reducing miles per product for delivery and returns.”

Simon Curtis, Sales and Marketing Director, PMC Retail: “Driving consumer convenience, value and sustainability, great work Farfetch. I am a particular fan of the donations and re-sale initiatives.”

Luke Phillips, Head of IT Delivery, Studio Retail: “Farfetch is recognising the power of influences and combining that with digital reality to showcase their products in a way that really engages with their target audience.”

Tiffany Lung, Retail Analyst: “I was impressed by their ability to blend digital platform with physical experiences. Also, leveraging their marketplace technology and moving from e-commerce into a SaaS company to help enable partners such as Richemont to strengthen their own digital offering.”

Paula Bobbett, E-Commerce Director, Boots UK: “Great selection of innovative tools to help customers choose and great partnership with charities in the US and UK.”

Fashion retailStaff WriterFarfetch, RTIH Innovation Awards, Neiman Marcus Group, Online retail, Retail technology, Investments, Fashion retail, E-commerce, US retail, Omnichannel retailComment