FARFETCH Limited, Neiman Marcus Group, and Bergdorf Goodman announced a global strategic alliance on Tuesday to revolutionize the luxury e-Commerce industry.
The partnership will bring the resources, technical know-how, and past experiences of the organisations together to create a more exciting experience for their customers, a press release on the company’s website noted.
According to the press release, the partnership was encouraged by the need to merge FARFETCH’s luxury new bold retail vision and NMG’s pioneering strategy to change the way luxury retail is positioned.
An important goal of this partnership is to restructure the Bergdorf Goodman website and mobile app and use them to be more relevant and effective around the world.
Founded in 2007 by José Neves as an alternative to providing premium service to luxury fashion clients, FARFETCH services customers in more than 190 countries including Nigeria. It sources items from more than 50 countries and more than 1,400 of the world’s best brands, boutiques, and department stores. The globally recognized brand also has as a part of its fleet, Brown and Stadium goods, and New Guards Group.
On the other hand, Neiman Marcus Group, is one of the largest multi-brand luxury retailers in the U.S., with the world’s most desirable brand partners delivering premium and unique products to a large array of luxury customers. The company has an expertise of over 9,000+ associates delivering a personalized luxury experience across their channels of in-store, e-Commerce, and remote selling.
The press statement, which is available on both companies’ websites, stated that FARFETCH will make a minority equity investment of up to $200 million in NMG, joining existing investors such as PIMCO, Davidson Kempner Capital Management, and Sixth Street.
NMG will be expected to spend the $200 million it got from FARFETCH to improve its technological and digital abilities so that it can better compete in the market.
It was stated that NMG would use the FARFETCH Platform Solutions (FPS) to re-platform the Bergdorf Goodman website and mobile application. Customers of Bergdorf Goodman will be able to have a better digital customer service experience because of this.
Jose Neves, FARFETCH founder, and CEO said, “I believe the U.S. luxury market is at a pivotal point,”
“Whilst the U.S. is proving to be a long-lasting source of growth for the luxury industry, fueled by younger generations who are highly engaged with the category, businesses will have to significantly upgrade their digital capabilities – powering both online and offline customer journeys – to meet these new customer expectations and stay ahead in what is going to be a competitive space in the coming years.”
Neves felt very lucky to be working with the Neiman Marcus Group because of how well the company was run and how well the company saw the future of the industry.
He said, “I greatly admire the Neiman Marcus Group, for its distinguished role in our industry, both with Neiman Marcus and Bergdorf Goodman, and also for its stellar management team, including Geoffroy and Darcy. We share the same unwavering vision for the future of luxury, with the customer at the centre of all we do. This partnership is about revolutionizing the luxury landscape globally, both online and offline, by combining NMG’s iconic presence in the U.S. with FARFETCH’s Luxury New Retail vision and technology. ”
Neiman Marcus Group CEO, equally excited about this partnership, said, “We are thrilled to be partnering with FARFETCH to accelerate our e-commerce strategy, creating a seamless customer experience,”
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“José and the entire FARFETCH team have built a best-in-class technology platform and are the ideal partners to help us grow Bergdorf Goodman to be an even stronger global digital luxury retailer. FARFETCH’s investment demonstrates their confidence in our omnichannel strategy, and we look forward to partnering with FARFETCH to continue revolutionizing the luxury customer experience and delivering value to all our stakeholders. ” He concluded.
Kelly Kowal, Chief Platform Officer at FARFETCH, spoke excitedly about the deal and how the FPS technology was going to change the industry for the better.
He said, “Our partnership with Neiman Marcus Group is another example of how FPS has become a preeminent digital partner for the luxury fashion industry,”
“This is a significant digital transformation opportunity that will allow us to unlock massive value for Neiman Marcus Group, its shareholders, and its customers, who will now be able to shop from wherever they are in the world.”
“By leveraging the technology and expertise of FARFETCH, we will further advance our integrated strategy to expand our reach and services to customers globally, bringing our one-of-a-kind, iconic New York fashion brand to customers worldwide,” said Darcy Penick, President of Bergdorf Goodman.
“This is an incredible opportunity to amplify our brand, further embed the Bergdorf Goodman experience across online and in-store, and continue our investments to further establish Bergdorf Goodman as a digital luxury leader on a global scale.”
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