This story originally appeared at Thinknum Media here. To see all the data referenced, click here for access.
E-commerce isn't all deals, bargains, and free shipping. In the case
of Farfetch, it's $43,000 fur coats and $32,000 watches delivered to
your door, and by most accounts, there is enough of a market for such
high-end items that it's not just doing well: it's about to go public.
Founded by José Manuel Ferreira Neves in June 2007, Farfetch's ($FARFETCH) mission is to be "the global technology platform for luxury fashion, connecting creators, curators and consumers," according to its IPO application. The
online luxury fashion retail platform made $385.9 million in 2017 — a
year where it reportedly had almost a million active customers — while
posting after-tax losses of $112.2 million.
We track inventory, social, and Glassdoor data for the startup,
which, when combined paint a useful, external data portrait of the
company as it seeks public investment. Here's some of that data broken
down.
What does Farfetch sell?
Right now, Farfetch sells over 100,000 products, ranging from "budget-friendly" fashion brands such as Kate Spade ($NYSE:KATE), Nike ($NYSE:NKE), and Levi's jeans, to fine watches, fur coats and other budget-breaking items that go for tens of thousands of dollars.
Out of all those products up for sale on August 29, 2018, the average price was $592.65.
Breaking it down by category, an average women's handbag on the platform will run you over $1,100, while the average pair of women's shoes costs $529.
In terms of what exactly is being sold on the website, our database
tracks every single product and its various styles, which gives an idea
of what brands are giving the most inventory variety. That title goes to
Prada ($HK:1913), a company known for its designer handbags, followed by rival fashion house Yves Saint Laurent.
Most-expensive items sold by Farfetch
With plenty of designer brands on offer, you might wonder what the
most farfetched (pun intended) and expensive fashion statement is on the
website.
On August 26, seven out of ten of the most expensive items on the platform were listed for $30,000 or more.
Most of these bank-busting fashion pieces are from luxury Swiss watch
manufacturer Ulysse Nardin, which is part of the French luxury group
Kering S.A. ($EPA:KER) that also owns Alexander McQueen, Gucci and Balenciaga.
But the most expensive single item, a fur coat from New York City-based designer Thom Browne, is definitely a stand-out among the ultra-expensive flashy timepieces.
App ratings
Farfetch is available both as an app and website,
allowing fashionistas to order from their iPhone or Android phone (or
laptop, of course). On both devices, the Farfetch app does well, touting
a 4.3 star rating on the Google Play Store and a full 5 stars on the
Apple App Store.
As well as filing for its IPO this past week,
Farfetch recently purchased an app called Fashion Concierge that
was founded by Daniela Cecilio, the second wife of Farfetch's CEO. No
word yet on what this would mean for its mobile application, but it will
be interesting to see how it will be integrated with what's currently
working for them.
Social media presence
Along with its sales success, Farfetch has a strong presence on
social media. On Twitter, its following is relatively steady above
80,000 accounts, while its Facebook page is inching closer towards the 2
million like count as the end of 2018 approaches.
Outside of its page, users are talking about the brand all around
Facebook. Since we started tracking its Facebook presence in April
2017, Farfetch's most-impressionable time of year was during the holiday
season, right around when
the New York Times profiled the "luxury e-tail" industry as part of its year-end issue (and when people scramble for gifts):
Employee workplace ratings
In terms of the company's internal health, Farfetch employees are
applauding its CEO, giving José Neves an impressive 92 percent approval
rating on Glassdoor.
As Farfetch is preparing to go public, its current and outgoing
workforce is beginning to grow uncertain, or even worried, of the
company's future. Since the new year, its business outlook rating, based
on how employees think the company will fair in the next six months,
dropped nearly 20 percent.
Hiring practices
Although its future is uncertain, Farfetch has plenty of
opportunities for those interested in joining it rather than investing.
Overall hiring is up since the beginning of the year, but slightly down
as it makes its bid to become a publicly traded company.
Most of these listings are for jobs based at its headquarters in the United Kingdom, or at several of its offices in Portugal.
Heading toward IPO
Farfetch filed to go public on the New York Stock Exchange under the
ticker FTCH. The company is aiming for a $5 billion valuation and, given
the size of the global market for personal luxury goods — $307 billion
in 2017
according to Bain — Neves and company just may hit those marks.
"We are a technology company at our core and have created a
purpose-built platform for the luxury fashion industry. Our platform
consists of three main components: applications, services and data," the
company noted in the filing.
-James Mattone, Thinknum Media
*To see the data referenced in this story, click here to request access.
