FARFETCH and Neiman Marcus Group (NMG) have entered a global strategic partnership that includes FARFETCH making a minority common equity investment of up to $200 million in NMG. The partnership aims to simultaneously build up FARFETCH’s Luxury New Retail vision and advance NMG’s effort to expand its integrated luxury retail offerings. The companies will initially focus on re-platforming the Bergdorf Goodman website and mobile application in order to expand its global capabilities and services using FARFETCH Platform Solutions (FPS).
The agreement will help Bergdorf Goodman introduce its digital customer experience and curated offering to customers globally while integrating seamlessly with the New York City flagship store. The Neiman Marcus brand also is committed to using select FPS modules including foundational international services. Additionally, both Bergdorf Goodman and Neiman Marcus will join the FARFETCH Marketplace as partners.
“I believe the U.S. luxury market is at a pivotal point,” said José Neves, Founder, Chairman and CEO of FARFETCH in a statement. “Whilst the U.S. is proving to be a long-lasting source of growth for the luxury industry, fueled by younger generations who are highly engaged with the category, businesses will have to significantly upgrade their digital capabilities — powering both online and offline customer journeys — to meet these new customer expectations and stay ahead in what is going to be a competitive space in the coming years.”
“We are thrilled to be partnering with FARFETCH to accelerate our ecommerce strategy, creating a seamless customer experience,” said Geoffroy van Raemdonck, CEO of NMG in a statement. “José and the entire FARFETCH team have built a best-in-class technology platform and are the ideal partner to help us grow Bergdorf Goodman to be an even stronger global digital luxury retailer. FARFETCH’s investment demonstrates their confidence in our omnichannel strategy, and we look forward to partnering with FARFETCH to continue revolutionizing the luxury customer experience and delivering value to all our stakeholders.”
NMG has been heavily pushing technological solutions as growth tools in recent years. Additions such as the CONNECT clienteling app and digital styling tool Stylyze have been pivotal to its recent success, and recent executive appointments, including Vijay Karthik as SVP and Chief Technology Officer, point to continued commitment in this area.
NMG will use the FARFETCH funding to further invest in its technology and digital capabilities. FARFETCH will join existing investors in NMG including PIMCO, Davidson Kempner Capital Management and Sixth Street.