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In this video we explore the rise and fall of the luxury fashion retailer Farfetch which reached a peak valuation of $24 billion in 2021 only to go bankrupt in early 2024.
Free and premium investor resources, check out our website: https://www.differentiatedanalytics.com/
For inquires related to Differentiated Analytics email us at: founder @woodandwoodenterprises.com
Check out our second channel Broken Business Models where we discuss unusual or otherwise suspect businesses that may be unviable: https://www.youtube.com/ @BrokenBusinessModels
For business inquires: Mary @creatormanager.co
For other inquiries: Wallstreetmillennial @gmail.com
Check out our new podcast on Spotify: https://open.spotify.com/show/4UZL13dUPYW1s4XtvHcEwt?si=08579cc0424d4999&nd=1
All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please send me an email, wallstreetmillennial.com, and we can sort it out.
#Wallstreetmillennial #farfetch
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Buddha by Kontekst https://soundcloud.com/kontekstmusic
Creative Commons — Attribution-ShareAlike 3.0 Unported — CC BY-SA 3.0
Free Download / Stream: http://bit.ly/2Pe7mBN
Music promoted by Audio Library https://youtu.be/b6jK2t3lcRs
––––––––––––––––––––––––––––––
0:00 - 2:16 Intro
2:17 - 5:38 Rise of Farfetch
5:39 - 10:13 The Downfall
10:14 Root Cause
In this video we explore the rise and fall of the luxury fashion retailer Farfetch which reached a peak valuation of $24 billion in 2021 only to go bankrupt in early 2024.
Free and premium investor resources, check out our website: https://www.differentiatedanalytics.com/
For inquires related to Differentiated Analytics email us at: founder @woodandwoodenterprises.com
Check out our second channel Broken Business Models where we discuss unusual or otherwise suspect businesses that may be unviable: https://www.youtube.com/ @BrokenBusinessModels
For business inquires: Mary @creatormanager.co
For other inquiries: Wallstreetmillennial @gmail.com
Check out our new podcast on Spotify: https://open.spotify.com/show/4UZL13dUPYW1s4XtvHcEwt?si=08579cc0424d4999&nd=1
All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please send me an email, wallstreetmillennial.com, and we can sort it out.
#Wallstreetmillennial #farfetch
––––––––––––––––––––––––––––––
Buddha by Kontekst https://soundcloud.com/kontekstmusic
Creative Commons — Attribution-ShareAlike 3.0 Unported — CC BY-SA 3.0
Free Download / Stream: http://bit.ly/2Pe7mBN
Music promoted by Audio Library https://youtu.be/b6jK2t3lcRs
––––––––––––––––––––––––––––––
0:00 - 2:16 Intro
2:17 - 5:38 Rise of Farfetch
5:39 - 10:13 The Downfall
10:14 Root Cause
Frédéric Court is really su far removed from reality. His firm is a joke. You go in an realise it’s just a bunch of hot air and not much else.
I worked at Farfetch from a couple of years, and left a 4 months ago. There is something missing from the equation which I also think should be mentioned. For years Farfetch's engineering teams (I'm talking around 2000 engineers) worked on the release of beauty products, which turned out to be an absolute flop. I once how much this strategic decision impacted the final outcome.
Nvidia is next
thank god. I dont have to sit through anymore farfetch sponsorships on my luxury youtube channels
Very interesting because therealreal is my favorite. The prices are so cheap I can buy a ton for like $100
They should have transformed their biz and market themselves as the biggest luxury goods logistics co.
They Dropped the balls
I do not see Farfetch as innovation at all so this is bound to happen.
Only poor people buy luxury brands
I actually brought a skirt off a boutique in Italy from Far Fetch. It was a skirt not available on the luxury brand's website. There was much more variety on FarFetch.
Farfetch created a great site and they have a lot of brands. But the clothes and accessories are very expensive.
At some point, to do an IPO, it should be mandatory to have at least a few years of profitability, NOT strong unit economics. All these "tech" companies that have been going from hero to zero in no-time (for example WeWork, Peloton) have one thing in common: They were never able to generate profit consistently.
Funny how companies can be evaluated magnitudes over their actual market capital, yet Trump is being politically ragged through the courts for doing exactly what all developers do while making money for everyone involved. Can’t wait for the collapse of the dollar so we don’t have to put up with market fraud like ‘market value’.
It seems like an idea that could have worked on a small scale, but it grew too big to succeed. Farfetch should probably never have become a publicly traded company.
this is the first time i have heard of farfetch… lol.
As someone that's Portuguese, I'm glad this is happening. You have no idea how much portuguese management and marketing professors talk about farfetch.
"farfetch did this, farfetch did that, farfetch are incredible, they are so successful" – hearing this constantly and seeing the hype associated with such overpriced and esthetically unpleasant clothes is insanely obnoxious.
many people point out that Farfetch didn't offer anything and was just the middle man. Based on what was explained in the video this was true, but there's one major area that the author missed which was the white label solutions. Basically Farfetch was working with the big fashion houses/groups, not to have their items on their website but to provide technology/access to their infrastructure for a fee. This was actually a promising area, since most old fashion brands lacked the expertise in ecommerce, and Farfetch already had a huge structure and know-how to share (they were the leading company in the market). This could had been an escape for the company but bad management, bad commercial decisions, bad negotiating skills and the huge ego of the CEO sank the ship.
The author also leaves out the ludicrous investments made in building a Tech Campus, buying smaller companies that had never been profitable, and losing money in NFT projects (remember the crypto that Facebook wanted to create? Farfetch was in that too). So in my opinion there were other factors that lead to this ending
I think bellroy is overpriced.
I remember looking at their wallet range a few years ago, but eventually went with an Italian shop on etsy,
Good riddance.
This is a decent business, but it is not a damn billion-dollar idea, or Far Fetched should have built its own brand since it did develop a name. They blundered there.
The beginning of the end was when the insider trading scandal that happened which completely destroyed the stock, and once investors pulled out, it died completely.
I am not a big online buyer (I live in a large city where I have access to everything in local shops), but I bought some great items from Farfetch (the local shop didn’t have my size anymore) and the experience was very good. Sad to see that their business model did not work eventually.
This is a natural business risk and failure. No fraud or fault. Sometimes bets don’t pay out.
I don't think I've ever enjoyed a 'sponsor spot' as much as I enjoyed this one! Looks like nice gear and the video (you shot or they provided) is ideal. I always enjoy your videos and I know that sponsor-revenue is part of a successful YouTube channel; a classy ad is just sauce for the goose. Continued success!
You missed a major point. Most of Farfecht clients were located in Russia and significant number were in also in China. Both disappeared in a flash that exasperated all weaknesses you pointed out.
It's written bellory not bellroy