What: The Financial Times reviews the reasons for such an abrupt fall at Farfetch and Matchesfashion

Why it is important: the disappearance of these companies does not mean that there is not a need for a multibrand environment online, simply that the perfect model remains yet to be found.

The article discusses the challenges and decline of luxury e-commerce platforms like Farfetch and Matchesfashion. It outlines the factors contributing to their struggles, including the shift in consumer preferences post-Covid, difficulties in maintaining profitability amid rising operational costs, and luxury brands' push for more control over their online presence. The narrative highlights the complex dynamics between maintaining an online luxury marketplace and the traditional luxury retail model, emphasizing the importance of innovation and adaptation in the evolving retail landscape.

The implosion of luxury e-commerce