While stationary retail is groaning under the new lockdowns, the portals of Internet retailers can hardly save themselves from clicks. This also applies to the luxury sector. But even before Corona, more and more people were indulging in something exclusive on the Internet. From Christian Ingerl
According to forecasts by the market research institute Bain, growth in online sales is likely to increase by an average of one fifth per year until 2025, while classic luxury retailing will only increase by three percent.
The Portuguese José Neves was one of the first to recognize this trend and launched Farfetch in 2008. It is a platform for luxury fashion that brings together luxury boutiques and buyers. Farfetch now connects more than 1,300 of the world’s finest brands, boutiques and department stores with customers from over 190 countries.
In the future, even more wealthy customers are likely to romp around on the virtual marketplace. Last November, Farfetch announced a cooperation with the Chinese Internet giant Alibaba and the Swiss luxury group Richemont. Hundreds of millions of customers cavort on Alibaba’s noble shopping channels alone. China, the world’s most important luxury market, is forecast to grow to more than $ 170 billion by 2025. In order to advance digitization in the luxury sector, the three companies not only founded a joint venture. Alibaba and Richemont have also acquired Farfetch.
Even without the powerful duo, Farfetch’s growth curve showed a steep upward trend. After a sales increase in the second quarter of 70.3 percent, the proceeds from July to September increased by a further 71.3 percent to 437.7 million dollars. Analysts, on the other hand, had only 370.4 million on the list. Farfetch is still in the red on the results page, but there are improvements here too. The return on Ebitda basis increased from minus 15.6 to minus 2.7 percent in the third quarter.
Rapid record hunt
Farfetch’s growth story is celebrated with gusto on the capital market. The share climbed more than 400 percent over the course of a year. Recently, however, the course consolidated in the area of 60 dollars. This breather could soon come to an end. Because the company should have done very well operationally in the Christmas business. In addition, the Munich-based online luxury fashion retailer Mytheresa has just announced its IPO on the New York Stock Exchange. That should further heat up the mood in the sector.
Risky investors can enter into short-term long speculation on Farfetch with a factor certificate from Morgan Stanley. The product shows the daily development of the base value with a factor of 2.
Source: BÖRSE ONLINE