Farfetch Limited (FTCH): Business Model Canvas

Key Partnerships

Farfetch Limited relies on several key partnerships to ensure the success of its business model. These partnerships play a crucial role in providing the luxury fashion platform with the necessary resources and expertise to operate efficiently and effectively. The main key partnerships include:

• Luxury fashion brands: Farfetch collaborates with a wide range of luxury fashion brands to offer a diverse selection of products to its customers. These partnerships enable Farfetch to showcase the latest collections from top designers and attract a loyal customer base.
• Boutique partners: Farfetch partners with boutique stores around the world to expand its inventory and provide customers with unique and exclusive fashion pieces. These partnerships help Farfetch differentiate itself from competitors and offer a curated selection of luxury items.
• Shipping and logistics providers: Farfetch works with shipping and logistics providers to ensure the timely delivery of orders to customers worldwide. These partnerships are essential to providing a seamless shopping experience and maintaining customer satisfaction.
• Technology and cloud service providers: Farfetch partners with technology and cloud service providers to enhance its e-commerce platform and improve the overall shopping experience for customers. These partnerships help Farfetch stay ahead of technological advancements and provide a user-friendly interface.
• Payment gateway providers: Farfetch partners with payment gateway providers to facilitate secure and convenient payment options for customers. These partnerships ensure smooth transactions and build trust with customers, ultimately driving sales and revenue for Farfetch.

Key Activities

Curating luxury inventory: Farfetch Limited is known for curating a wide range of luxury items from designers and boutiques around the world. This involves selecting items that align with the company's brand image and appeal to their target market.

Platform development and maintenance: A key activity for Farfetch is the ongoing development and maintenance of their online platform. This includes ensuring that the website is user-friendly, secure, and optimized for mobile devices.

Customer service management: Providing excellent customer service is essential for Farfetch in order to build and maintain customer loyalty. This includes handling inquiries, processing orders, and resolving any issues that may arise.

Marketing and brand partnerships: Farfetch engages in a variety of marketing activities to promote their brand and attract new customers. This includes collaborations with designers and influencers, as well as advertising campaigns and social media promotions.

Data analysis and customer insights: Farfetch relies on data analysis to gain insights into customer behavior and preferences. This information is used to tailor their inventory selection, marketing strategies, and overall customer experience.

• Curating luxury inventory
• Platform development and maintenance
• Customer service management
• Marketing and brand partnerships
• Data analysis and customer insights

Key Resources

Farfetch Limited has built a strong business model based on a variety of key resources that support its operations and drive growth. These resources include:

• E-commerce platform: Farfetch's online platform serves as the foundation of its business, connecting customers with a vast selection of luxury fashion items from boutiques and brands around the world.
• Extensive network of boutiques and brands: Farfetch has curated a network of over 1,300 boutiques and 3,500 brands, offering customers access to a wide range of high-end fashion products.
• Customer database: Farfetch has amassed a wealth of data on its customers, enabling the company to personalize the shopping experience, target marketing campaigns, and drive customer loyalty.
• Brand reputation: Farfetch has established itself as a trusted and reputable online retailer of luxury fashion, attracting high-end brands and customers alike.
• IT infrastructure: Farfetch's IT infrastructure powers its e-commerce platform, enabling seamless transactions, secure payments, and efficient order fulfillment.

These key resources work in tandem to support Farfetch's business model, driving customer acquisition, retention, and revenue generation.

Value Propositions

Wide selection of luxury goods: Farfetch Limited offers customers a wide range of luxury goods, including clothing, accessories, and shoes from top designers and emerging brands. This allows customers to find unique and high-quality items that suit their style and preferences.

Exclusive brand and boutique collaborations: Farfetch Limited collaborates with exclusive brands and boutiques to offer customers access to limited edition collections and unique pieces that are not available elsewhere. This gives customers the opportunity to own one-of-a-kind items that stand out from traditional retail offerings.

Global reach with local boutique feel: Despite its global presence, Farfetch Limited strives to provide customers with a local boutique feel by offering personalized shopping experiences and connecting them with boutiques and designers from around the world. This unique approach allows customers to discover new brands and trends while supporting local businesses.

Seamless online shopping experience: Farfetch Limited provides customers with a seamless online shopping experience through its user-friendly platform and innovative technology. Customers can easily browse through products, make purchases, and track their orders with ease, providing them with convenience and peace of mind.

Access to emerging and top fashion brands: Farfetch Limited gives customers access to both emerging and top fashion brands, allowing them to discover new talent and support established designers. This diverse selection of brands ensures that customers can find the latest trends and styles that suit their individual tastes and preferences.

Customer Relationships

Farfetch Limited (FTCH) prioritizes building strong and lasting customer relationships through various strategies:

Personalized shopping recommendations: Farfetch uses data analytics to understand customer preferences and behavior, allowing for personalized product recommendations tailored to each individual. This enhances the shopping experience and increases customer satisfaction.

Customer support via chat, email, and phone: Farfetch provides multiple channels for customers to reach out for support, ensuring that their questions and concerns are promptly addressed. This helps build trust and loyalty among customers.

Loyalty programs: Farfetch offers loyalty programs to reward repeat customers and encourage continued patronage. These programs may include perks such as exclusive discounts, early access to sales, and personalized offers.

User-friendly website and mobile app: Farfetch invests in creating a seamless and intuitive online shopping experience for customers. This includes easy navigation, quick checkout processes, and personalized content to enhance engagement.

Community engagement through social media: Farfetch actively engages with customers on social media platforms to foster a sense of community and belonging. By sharing content, interacting with followers, and hosting events, Farfetch strengthens its connection with customers and builds brand loyalty.

Channels

Farfetch Limited utilizes a variety of channels to reach its target customers and drive sales. These channels include:

• Online marketplace: Farfetch operates a comprehensive website and mobile app that serve as the primary platform for customers to browse and purchase luxury fashion items from a wide range of brands.
• Social media platforms: The company maintains a strong presence on popular social media channels such as Instagram, Facebook, and Twitter to engage with customers, showcase new products, and drive traffic to its online marketplace.
• Email marketing: Farfetch leverages email marketing campaigns to send personalized promotions, updates on new arrivals, and exclusive offers to its customers, thereby encouraging repeat purchases and brand loyalty.
• Fashion events and pop-ups: Farfetch organizes and participates in various fashion events, exhibitions, and pop-up shops to create buzz around its brand, connect with customers in-person, and provide a unique shopping experience.
• Collaborations with fashion influencers: Farfetch partners with fashion influencers, celebrities, and designers to create exclusive collections, promote its brand, and generate excitement among its target audience.

Customer Segments

Farfetch Limited (FTCH) targets a variety of customer segments in the luxury fashion industry:

• Luxury fashion enthusiasts: These customers are passionate about high-end fashion brands and seek the latest trends and designer pieces.
• High-income individuals: Farfetch caters to affluent customers who have the means to purchase luxury items at premium prices.
• International customers seeking exclusive brands: With a global reach, Farfetch appeals to customers from different countries who are looking for exclusive designer labels not readily available in their home markets.
• Fashion-forward millennials and Gen Z: Farfetch's online platform offers a curated selection of trendy and stylish pieces that appeal to younger generations.
• Customers seeking rare or unique fashion items: Farfetch's marketplace features a wide range of rare and hard-to-find fashion items that cater to customers looking for one-of-a-kind pieces.

Cost Structure

Farfetch Limited's cost structure is an essential component of its business model canvas, as it dictates the expenses incurred by the company in order to maintain operations and generate revenue. The following are key cost elements that make up the cost structure of Farfetch Limited:

• Platform development and maintenance costs: Farfetch invests significantly in the development and maintenance of its online platform, which serves as the main interface for connecting luxury fashion retailers with customers globally. This includes expenses related to website design, infrastructure development, and technological updates to ensure a seamless user experience.
• Marketing and advertising expenses: Farfetch engages in marketing and advertising activities to promote its brand, attract new customers, and drive sales. This includes costs associated with digital marketing campaigns, social media advertising, influencer partnerships, and traditional advertising channels.
• Shipping and handling costs: As an e-commerce platform, Farfetch incurs shipping and handling costs for delivering products to customers worldwide. These costs include packaging materials, logistics expenses, and customs duties, which vary depending on the destination and size of the order.
• Partnership and collaboration expenses: Farfetch collaborates with luxury fashion retailers, brands, and designers to expand its product offerings and reach a wider audience. These partnerships require investment in negotiations, contracts, and joint marketing efforts to create exclusive collections and experiences for customers.
• Customer service operations: Providing high-quality customer service is essential for Farfetch to retain and attract customers. This includes expenses related to customer support teams, call centers, live chat services, and training programs to ensure timely and effective assistance for any inquiries or issues.

Revenue Streams

Commission on sales: Farfetch Limited earns a significant portion of its revenue through commissions on sales made on its platform. As a leading luxury fashion marketplace, Farfetch charges a percentage of the total transaction value as a commission fee to the sellers.

Subscription fees for premium services: Farfetch offers premium services to both buyers and sellers on its platform, which come with additional benefits such as personalized styling recommendations, early access to sales, and exclusive discounts. Customers pay a subscription fee to access these premium services, contributing to Farfetch's revenue stream.

Advertising fees from featured brands: Brands looking to increase their visibility and reach a targeted audience can advertise on Farfetch's platform. By featuring brands on its homepage, in newsletters, and through targeted campaigns, Farfetch generates revenue from advertising fees.

Special edition and exclusive launches: Farfetch partners with luxury brands to launch special edition and exclusive products on its platform. These limited-edition releases generate buzz and drive sales, providing a boost to Farfetch's revenue stream.

Data monetization through market insights sales: Farfetch has access to a wealth of data on consumer preferences, purchasing behavior, and market trends. The company leverages this data to provide valuable insights to brands and retailers, who are willing to pay for access to this valuable information. By monetizing its data through market insights sales, Farfetch creates an additional revenue stream.

• Commission on sales
• Subscription fees for premium services
• Advertising fees from featured brands
• Special edition and exclusive launches
• Data monetization through market insights sales