The move signals Farfetch’s desire to expand its resale capabilities by bringing them further in-house. The company is eyeing category and regional expansion under its Farfetch Second Life program (which will soon offer more than just bags) as well as technology leadership in the business-to-business resale space.
“Farfetch has been working with pre-owned and vintage boutiques since Day One, so it’s been now over 10 years, and it’s always been part of our proposition.…Now, we definitely see the overall market accelerating,” Giorgio Belloli, chief commercial and sustainability officer of Farfetch, told WWD. “Because of the relationship we’ve had with Luxclusif over the past few years, we felt it was the right time to join forces and to really try to accelerate some of the services that, combined, we can make available for the industry.”
White-label resale is a lucrative target for Farfetch. “Much of the vision is to use the Luxclusif platform to operate a white-label proposition for brands and retailers. You can imagine the opportunity to replicate what we’re doing for Farfetch, but for brands directly,” Belloli added.
In addition to the ongoing operations of Farfetch’s Second Life platform, Luxclusif will be a service to brands under the company’s Farfetch Platform Solutions — a suite of commerce and retail tech solutions founded in 2015. FPS brand partners include the likes of Christopher Kane, Nicholas Kirkwood, Roberto Cavalli, Heron Preston, Palm Angels, Off-White, 3.1 Phillip Lim, as well as retailers like Harrods and Browns.
The list is a roster for guessing any upcoming resale moves.
Last year was the tipping point for brands entering resale — with more and more brands and retailers entering the space, among them Gap, 3.1 Phillip Lim, Nordstrom, Walmart, Gucci, Levi’s and Rent the Runway. Re-commerce middlemen like Trove, Archive and Recurate are already taking (brand) names and eyeing the billion-dollar opportunity in brand-owned resale.
While Farfetch doesn’t report what percentage of its business is pre-owned across its platform, Belloli said it is “significant.” Today, the Farfetch Second Life program is available in the U.S., the U.K., select European markets and most recently, the Middle East. The program, which is a key aspect of its sustainable pitch under Positively Farfetch, allows shoppers to sell pre-owned designer handbags for shopping credit.
Certain names are on its list for reselling handbags on Farfetch Second Life, including the usual suspects Chanel, Burberry, Prada, Gucci and Stella McCartney.
Belloli said Farfetch Second Life is eyeing expansion to China as consumers there are “opening up to the idea of pre-owned.” “Between new regions and new categories, there is still a lot that we can capture in terms of market share,” he said.
According to Farfetch’s first Conscious Luxury Trends Report released in April, circular fashion is resonating strongly with its shoppers, with its Second Life retail service growing 527 percent last year. By that same report, Farfetch said more than half of its customers have been buying or selling pre-owned in some capacity.
While Farfetch is bullish in leading with its “pre-owned proposition,” according to Belloli, the platform seeks to be the ultimate destination for both pre-owned and new luxury fashion.
For More, See: