Why Does Farfetch Speed Up The Process Of IPO?

According to the world clothing and shoe net, although similar news has been reported in November last year, according to the latest report of Sky News,

It is possible to speed up its IPO preparation process. It is estimated that the IPO time will be less than 18 months, the listing will be New York stock exchange, and the valuation will be as high as 5 billion US dollars, far exceeding the 1 billion 500 million US dollars previously announced.

Farfetch's choice of listing in New York is mainly due to the risks brought by Britain's off Europe and the US market.

Strong demand for electricity providers.

It is reported that in 2016 the United States

The total sales volume is more than 18 billion US dollars, which is more than two times that of the UK.

In a statement, Farfetch President Jose Neves still refuses to give any detailed explanation of the IPO plan: "we may consider IPO in the future, but now our focus is on business growth, and our supporters are very supportive of our investment in the technology platform of the global luxury industry."

But his ambition in luxury electric business has long been clear.

In February, Net-a-Porter founder Natalie Massenet just joined Farfetch as a non executive co chairman.

In April, the company announced a plan called "future store", which seemed to emphasize its strength as a technology company rather than a fashion company.

According to the founder of Farfetch Jos Neves, the "future store" is a modular operation system for partners, including tracking customers' online and offline browsing information, digital dressing mirror, mobile payment and so on, helping third parties obtain user data and better shoppers interaction.

According to BoF, the plan will be fully rolled out in 2018.

At the same time, it also began promoting B2B business like Net-a-Porter, helping brands build their own e-commerce sites.

With these data, you can provide customers with super personalized experience online and offline.

For example, in marketing, you know that a customer visited your store 5 hours ago, so you could target them at Instagram.

Jos e Neves said in an interview with BoF last year.

All this needs more capital investment.

Farfetch London Office

Farfetch has been established for 9 years, so far it has a total of 350 million financing. Investors include IDG capital in China, Eurazeo in France, Vitruvian Partners in London and Nash group in Kangtai, USA.

Its last round of financing took place last year, and Singapore Investment Fund Temasek Holdings injected $110 million, which is the $1 billion 500 million valuation of the institution.

In terms of sales performance and traffic performance, Farfetch is indeed one of the fastest growing electricity providers in the world.

According to Alexa's data, Farfetch's traffic exceeds that of competitors such as Net-a-Porter and Neiman Marcus.

Although it lost $40 million last year, it still failed to make profits, but its total sales volume reached $80 million, an increase of 60% compared with the same period last year, and its annual revenue amounted to about $150 million, mainly from its 25% commission to the third party cooperation brand.

But from the increasingly open attitude of luxury goods to electric providers, competition in this market will become more and more crowded.

Farfetch not only needs to catch up with a much larger volume of Net-a-Porter, which has a net sales of 2 billion US dollars in 2016, an increase of 18% over the same period last year, and launched a similar quick door-to-door delivery service similar to Farfetch, and also faced competition from its customers.

In June 9th, LVMH has just launched its own e-commerce website 24 S vres, while Farfetch has more than 70 brands from the group.

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