A year since its acquisition of Farfetch, South Korean e-commerce giant Coupang has reinvigorated the retailer and pushed it towards profitability by shuttering side businesses, streamlining complicated logistics and selling off Violet Grey, Palm Angels and Off-White. Coupang reported that Farfetch nearly broke even on its earnings before interest, depreciation and amortization in November; but in pursuit of cutting extra fat, Coupang has slashed much of the muscle that allowed Farfetch to become a major player in online luxury retail. Coupang eliminated teams that woo Farfetch’s top-spending customers with personalized services, and Farfetch’s relationships with luxury brands have deteriorated as it no longer allows them to have a say in pricing.
Inside Coupang’s Tug of War With Farfetch [Business of Fashion]
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