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Is Kering Group reducing its presence on Farfetch?

2024 is shaping up to be a challenging year for luxury brands. After the peaks recorded during the pandemic, the luxury market faces a period of adjustment.

According to McKinsey, in Europe, the growth of this sector will be slower than in 2023, with a growth prospect of 3-5% in 2024.
In the United States, however, the luxury market is stable, with growth between 2 and 4% expected for this year (versus 1-3% in H2 2023) supported by high-end brands. China, too, will continue to grow, but without replicating the boom that occurred in the past.

In this context, the Farfetch platform, after teetering on the brink of bankruptcy, announced staff cuts of 20-30%. In February 2024, the Kering Group announced its intention to exit Farfetch. This is just one example of the precarious situation many luxury brands and e-tailers face today.

In collaboration with Data Boutique, we analyzed whether Kering has ended its relationship with Farfetch, and what impact this would have on the platform and the market.

The report revealed that:

  • All Kering Group brands are reducing their presence on Farfetch, with Gucci leading the way by reducing its merchandise availability by approximately 87%. This could signal a broader strategic shift within the Kering Group towards direct-to-consumer channels or other platforms
  • Michael Kors is also reducing its presence on Farfetch, decreasing not only the number of SKUs but also the level of stock (-27%) present in the marketplace
  • Some brands, however, remain stable or are even increasing their presence on Farfetch. In particular, Burberry increased the availability of goods in all countries, including China (+28%), marking a strategic increase in a key luxury market
  • Given that Kering Group brands have often been trendsetters, this could imply that the Farfetch channel is losing effectiveness and that the channel crisis could continue in the coming months

What should luxury brands expect in response to the evolution of distribution channels?

The report contains:

  • An analysis of the factors driving disruption in the luxury market in 2024
  • Data on the Farfetch case and the Kering Group and other major players’ responses
  • Recommendations for navigating the next few months based on market and distribution trends.


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