What: Kering has terminated its contract with Farfetch, planning to remove its brands from the platform by the second quarter of the year. This decision comes after Farfetch's acquisition by South Korean e-commerce giant Coupang, raising concerns about the future relationship between luxury brands and the marketplace.

Why it is important: Kering's withdrawal from Farfetch signifies a significant shift in the luxury e-commerce landscape, highlighting the challenges faced by multi-brand platforms in maintaining partnerships with luxury conglomerates. It also reflects the growing trend of luxury brands focusing on direct-to-consumer sales through their own e-commerce channels, seeking greater control over pricing, product assortment, and customer data.

Farfetch's acquisition by Coupang has led to Kering ending its partnership with the e-commerce platform, marking a significant loss for Farfetch as Kering's brands contributed over USD 100 million in gross merchandise volume annually. In response, Farfetch plans to offer high-end brands on its site through third-party boutiques, ensuring "complete anonymity" to avoid backlash from luxury brands. This strategy aims to bypass direct dealings with brands while still offering their products. Kering's move, along with Neiman Marcus Group's decision to abandon Farfetch's e-commerce software for Bergdorf Goodman's online revamp, underscores the luxury industry's cautious stance towards Farfetch's future under Coupang's ownership. As luxury brands increasingly invest in their own e-commerce sites, platforms like Farfetch face challenges in maintaining their relevance and partnerships in the luxury market.

Kering is pulling its brands from Farfetch