British luxury e-commerce company Farfetch increases advertising investment to expand e-commerce business

Due to the epidemic blockade, the economies of countries around the world have declined to varying degrees. Multiple studies have shown that luxury goods are experiencing the "worst year". But for British luxury e-commerce Farfetch, the situation is just the opposite.

The company has seen record-breaking sales during the pandemic. “We’ve witnessed a paradigm shift in online luxury sales, ” said José Neves, Farfetch’s CEO and co-founder . In the quarter ended September, Farfetch’s revenue grew 71% from the same period last year to $438 million . Its share price has quadrupled since February 2020 and it is now on the cusp of profitability.

It is understood that Farfetch was founded in 2007 and is headquartered in London. It is an online luxury fashion e-commerce platform that sells products from more than 700 brands around the world, with business covering the UK, Spain, France, Japan and other regions. The company went public in 2018, with approximately 10 million website visits per month and delivers packages to customers in 190 countries and regions.

Last year, Farfetch, a Chinese e-commerce giant, Alibaba and luxury goods group Richemont, jointly invested in Farfetch, which will compete with Amazon to grab a share of the online luxury market. With its strong development momentum, Farfetch plans to increase its advertising investment this year to increase consumer awareness of Farfetch .

Farfetch Group said that normally we think TV ads are useless, but the number of people watching TV will increase during the epidemic. By then, Farfetch's brand image will appear on many billboards, magazines and social media. In the United States, the group will use big data to accurately locate the market and place advertisements to target consumers through TV channels.

The head of Farfetch said that their investment in brand marketing has greatly exceeded expectations. The company's third-quarter financial report showed that its management expenses increased by 52.3% compared with the same period last year, close to $50 million, partly due to marketing expenses.

In addition, Farfetch is also focusing on building brand awareness and plans to improve the personalization of the website and keep people on the website longer. Currently, Farfetch also sells products on Alibaba's Tmall Luxury and Tmall Global platforms.

Cross-border e-commerce market

U.K.

Luxury