#Luxury e-commerce as a category is cracking under pressure. Demand is down as consumers continue to feel the pressures of inflation, and the competitive tension rises as luxury e-commerce sites are left to grapple both amongst one another and against brands’ increasing direct-to-consumer investments. On Monday, Farfetch narrowly escaped - potential - bankruptcy, thanks to South Korean e-commerce giant Coupang, which acquired the #luxury e-tailer and injected $500 million into the company. As a result, the Farfetch-Yoox-Net-a-Porter deal is dead. In October, Farfetch was cleared to buy a 47.5% stake in loss-making Yoox Net-a-Porter (YNAP) from Swiss luxury conglomerate Richemont, an agreement first announced in August 2022. Buying its rival would have been a signal to the industry that Farfetch had won the e-#commerce battle. But by the end of November, troubles at Farfetch threw the deal into uncertainty. With the #Farfetch deal off the table, Richemont is left to rethink loss-making Yoox Net-a-Porter’s future.
