Farfetch delivers $43,000 fur coats via an app and it's about to IPO. Here's its story.

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.

How Well Known Labels Are Changing the Counterfeit Stigma

 

A Guccy shirt from Gucci Resort 2018Photo: Yannis Vlamos / Indigital.tv

Once upon a time, counterfeit designer goods were a fashion no-go. Buying a fake piece of clothing or accessory was associated with a try-hard attitude and an empty pocket. Take, for example, Sex and the City’s “Sex and Another City” episode, in which Samantha Jones bought a knockoff Fendi bag from the trunk of a car. After showing it off to her friends, she noted, “You’d never know it wasn’t real Fendi unless you look inside at the lining.” Later on, Samantha’s dirty little $150 made-in-China secret was found out publicly at a party—a small price to pay for long-lasting embarrassment.

But times have changed. Recently, some of the most influential runway designers have created cringe-worthy, definitely-not-real clothes and accessories—a far cry from Samantha’s trunk-plucked Fendi, inspired by the more modern appeal of bootleg fashion. Alessandro Michele showed Fake Gucci T-shirts loudly emblazoned with the label’s logo for Resort 2017, a design based on counterfeits that were popular on the streets during the ’80s. The brand’s Resort 2018 collection continued with the theme of through-the-looking-glass bootleg culture: A coat with Gucci-monogrammed sleeves became the meme heard round the Internet after it drew comparisons to a similar topper by Harlem-based designer Dapper Dan, the original kingpin of DIY luxury bootlegs, who created a Louis Vuitton monogrammed coat for Olympic medalist Diane Dixon in the ’80s. There were also shirts that read Guccy—reflecting a trend at bargain bazaars, where misspelled names (deliberate or otherwise) are on every corner.

Before Gucci’s foray into faux fakes, there was, of course, Vetements, which turned the concept of fake fashion on its head and shilled “real fakes” to the mass market. In October 2016, the brand held an “official fake” garage sale outside Seoul, where off-kilter remakes of iconic pieces nodded cleverly to the proliferation of Vetements bootlegs in that city. Since Vetements, like Gucci, has become one of the most copied labels in the world, the strategy makes sense: If you can’t beat the copycats to the punch, then join them for a higher price tag. The approach seems to be working. Those Fake Gucci T-shirts have sold out both at Selfridges and Farfetch.

A Fake Gucci T-shirt from Gucci Resort 2017Photo: Yannis Vlamos / Indigital.tv

I recently returned from Tbilisi, Georgia, with hoards of thick plastic “Chinatown” bags printed with the double-C Chanel logo (with the house’s name written as “Ceanhl”) and other totes combining Louis Vuitton’s classic Damier monogram with Gucci monogrammed tabs. The cheap carryalls may be considered the bane of luxury—they are scathingly, shamelessly fake—but there’s also a cheeky charm that comes with proudly sporting something so obviously not real. My colleagues seemed to agree with this line of thinking: The totes were a hit at the office. “It’s a so-bad-it’s-good thing,” said Vogue’s Fashion News Director, Chioma Nnadi, the recipient of one of the bags. “There’s nothing subtle about the fakeness of it. It’s like no-shame fake.”

Fake Chanel tote bags, a fake Versace shirt, and fake Chanel bedsheets from Eastern EuropeCourtesy of Liana Satenstein / @liana_ava

On a smaller scale, there is the rise of millennial bootleg artists. Designer Ava Nirui of @avanope has built a career out of embroidering Gucci onto Champion hoodies and merging Carhartt with the Chanel name. Imran Moosvi, aka @imran_potato, uses the Louis Vuitton and Gucci monograms in almost everything—splicing them into Nike zip-up hoodies or creating natty ties from them. “For me personally, fake stuff is more fun,” he says. “There’s more freedom to do whatever you want with it. I think the stigma associated with something being bootleg or fake is starting to disappear a little bit, because at the end of the day, people just want to see a cool product.”

But does the trend have legs? “I don’t think this design culture has longevity, because people will always find a way to overdo and ruin,” Moosvi says. After all, is there really fun in spending top dollar for an item that mimics a fake $15 one? Luxury consumers so far seem not to mind; it remains to be seen whether Guccy will have the same effect. Until then, maybe it’s more real to stick with the fake deal.

BAG BUYING GUIDE: Buying Preowned Handbags + Investment Handbags

AUTHENTICITY
Needless to say, authenticity is the most important factor of buying second-hand designer handbags and accessories. Nearly all consignment shops promise bag authenticity, however many of you have still been in the unfortunate position of having purchased a non-authentic bag from one of these trusted sellers. Though designer handbags have been around for centuries, the marketplace for pre-owned purses is still only about a decade young! The internet has a wealth of knowledge regarding designer handbags and accessories, but how many people are truly able to dedicate most hours of the day to understand the production trends of each designer brand? That's where Real Authentication comes in! We are here to do all the heavy lifting for you - we extensively analyze and cross check all engravings, textiles, font styles (and so much more) on your designer handbags to ensure your purses will be appropriately assessed. Don't find yourself at a loss; certify all of your preowned designer purchases and sales with a Real Authentication . . . because real is better!

INVESTMENT PIECES

Great discounts can be found by purchasing gently used designer handbags, but saving money doesn't have to be the only perk of buying pre-owned purses. An investment bag is known for its increasing value over time, and some, like the classic Chanel Jumbo flap bag are worth even more than gold! If you have the cash to spare and are looking for a secure investment (while indulging in some delicious closet eye candy!) investment purses are the perfect purchase. 

Carrie Bradshaw knew what she was talking about when she said...

CONDITION & AGE

When buying a pre-owned designer handbag it is important to consider the overall condition of the bag. Does the bag show wear or discoloration to any of the corners or edges? Does the seller mention any offensive odor or flaws to the bag? Sometimes consignment shops try to describe negative traits of their purses in more appealing ways, so be sure to examine photos carefully and read all descriptions thoroughly before committing to buy.  It's always safe to ask any and as many questions before plunking down money.

INTERNATIONAL IMPORT FEESPurchasing expensive designer handbags internationally via eBay or another platform may cost you an extra hefty fee! Import fees and taxes are only waived if purses being imported are marked as a "gift". Unfortunately, most international sellers will not offer this "gifting" as an option - it is technically not legal for them to do so. To pre-determine your designer handbags customs fee you can visit http://www.dutycalculator.com/

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​Have additional questions?  We would love to hear from you! Contact us at info@realauthentication.com 

6 REAL REASONS FAKES ARE DANGEROUS

6 REAL REASONS FAKES ARE DANGEROUS

Counterfeit handbags, shoes, jewelry and accessories are not only illegal, they can be toxic to the economy, environment and even your health. According to CBS New York, the sale of counterfeit goods account for a detrimental $250 billion industry. Here are 6 reasons, the price simply does not justify the purchase:

1. Child LaborThe counterfeit market relies on cutting corners to maximize profits - this ideology unfortunately applies to every aspect of counterfeiting process. Counterfeiters do not abide by the standard government regulations put into place with intention to protect workers. Employees assembling counterfeit goods are often children, working for less than fair wages, in less than acceptable conditions. It is not uncommon for these underaged employees to be sent by their families to live and work in counterfeiting factories in order to help provide for their impoverished families back home. 

2. Counterfeit Goods Fund Illegal Activity

Many counterfeit operations are created as a front to launder money acquired from criminal activities. Most often, organized crime networks operate many illegal activities all at once and use the sale of counterfeit goods to either launder money or generate funds for other criminal activities like drug trade, human trafficking, sex trafficking, robbery or terrorist activities. All of these activities hurt both local and global economies as well as cause severe injury and harm to basic human rights.

3. Unsafe Working ConditionsTo make matters even worse, the factories themselves force unsafe working conditions upon their employees. Workplace safety is of no concern and many serious injuries often occur while on the job. Protective clothing such as masks and gloves are not provided to employees and therefore they work unprotected from toxic chemicals, dyes and unclean air quality clouded with dust, fumes, or even fabric particles from sewing, cutting or distressing fabrics. Exposure to these elements can cause serious longterm illness.

4. Health Risks and DiseaseOne of the most common health issues caused by poor working conditions is Silicosis, a respiratory disease that can lead to death if left untreated. Silicosis, is the result of silica dust particles entering the lungs and is most frequently acquired from sandblasting materials to achieve a 'distressed' look (thats right - the faded jeans that literally everyone wears). In 2009, over 20,000 workers suffered from this disease (due to workplace conditions) in China alone.

5. Negative Environmental ImpactLooking at the issue from an environmental standpoint, counterfeiting factories do not dispose of their waste properly or in accordance to any regulation. Surrounding communities can feel the affects by becoming unknowingly exposed to toxic chemicals in their air, soil or water sources. Again, potentially leading to longterm illness and environmental issues.

6. They Can Kill You.Counterfeit goods can be hazardous to your health. The technical construction of counterfeit goods is under par at best. Materials used to make fake handbags, shoes, clothing and accessories are often completely toxic! This is primarily concerning when counterfeiting children's apparel, though the toxins can most certainly affect adults as well. Lead paint can often be found in counterfeit goods which is highly toxic and can be deadly if ingested or if the child puts their hands in their mouth after coming into contact with the product containing lead paint. Many of the fake handbags, shoes and accessories that we have seen over the years have a pungent plastic-like or even gasoline-like odor to them. This can undoubtedly be bad for not only your health but also the environment.

Currently, trade in counterfeit goods is estimated to be a $500 billion dollar global industry. By the year 2025 it is predicted that the global economic loss due to counterfeiting could reach $2 trillion dollars annually. In 2005, customs preformed 8,000 seizures of goods valued at more than $92 million. In the United States alone, it is estimated that 750,000 jobs are lost each year due to counterfeit goods. Please follow this link for an extensive report on the severity of counterfeiting in the global marketplace.

Real Authentication offers expert authentication services for luxury designer handbag brands like Chanel, Hermes, Louis Vuitton, Givenchy, Burberry and many more. Our handbag authentication experts have truly studied the ins and outs of each and every brand we offer authentication services for. It may seem hard to believe, but with daily research of each designer handbag brand, we are able to confidently pass our expertise off to you through authentication, appraisal and identification services. We are always happy to answer any questions or concerns you may have regarding your preowned designer purchases. We specialize in handbag authentication but also provide many additional services you may need as well!

www.realauthentication.com