After the news that the stock price fell by 99% and was abandoned by Chinese capital, the world's largestLuxury e-commerceplatformFa Fa Fa Wai Wai（farfetch) announced its delisting. Once the scenery was infiniteFa Fa Fa Wai WaiAt its peak, the market value was as high as 25 billion US dollars, but in the past three years, it has been continuously sold by the capital market, with the stock price ** to 99%, and the market value is only 2$5.3 billion. This makes people wonder what is going on behind the scenes, and why is this once sought after by Chinese capitalLuxury e-commerceEventually abandoned?
As mentioned in the original article,Fa Fa Fa Wai WaiIt was accepted between 2016 and 2020Seven wolves, JD.com, Tencent,Alibabaand heavy investment by Chinese bigwigs such as Richemont. These are sought after by Chinese capital withFa Fa Fa Wai WaibehindLuxuryResources are inseparable. Fa Fa Fa Wai WaiIt has 550 boutiques in more than 400 countries, more than 200 international brands and more than 2,000 designer brands authorized around the world. Once,pradaIt has even opened its own more than 70 warehouses for supplyFa Fa Fa Wai WaiUse. theseLuxuryResources forFa Fa Fa Wai WaiWinLuxuryThe trust of the brand plays a crucial role.
However,Fa Fa Fa Wai WaiAnother important factor behind their success is the technical background of their founder, José Neves. Neves was founded in 2007Fa Fa Fa Wai Wai, and did not position it as ordinaryE-commerce platforms, but a technology company. Fa Fa Fa Wai WaiBy providing a full range of solutions for major brands, covering platforms,Digital Marketing, logistics and customer service, etc., forLuxuryThe brand provides a low-cost and efficient e-commerce solution. Let'sLuxuryBrands can transition to e-commerce without competing with brick-and-mortar stores.
However, despite thatFa Fa Fa Wai WaiAt first, it was successful with its technical cards, but it encountered difficulties in the transformation that followed. Fa Fa Fa Wai WaiThrough acquisitionsoff-whitenewguardwithstadiumgoodsand other brands, shifting their business from technical services to three modules: digital platforms, brands and physical stores. This transformation means:Fa Fa Fa Wai WaiIt has gradually returned to the traditional e-commerce model. However,LuxuryThe combination with e-commerce is not easy, and there is hardly a particularly successful case at home or abroad. E-commerce focuses on cost performance, andLuxuryIt relies on "social distancing" to attractRich peopleBuy, there is a conflict between the two philosophies.
In addition,LuxuryofSupplyProblems have also become one of the difficulties encountered by e-commerce. LuxuryBrands tend to belong to the family businesses at the top of the entire value chain, and they are very cautious about licensing. E-commerce platformsIf you can't get it directly from the brand, you can only buy it through secondary distributors or distributors, which not only allows middlemen to earn the price difference, but also makes it difficult to ensure the authenticity of the goods. Once the fake goods are exposed, it will inevitably form a fatal blow to e-commerce.
In summary,Fa Fa Fa Wai WaiAs the world's largestLuxury e-commerceplatform, which has been known for its technical brand as wellLuxuryResources are highly sought after by Chinese capital. However, in the process of transformation,Luxuryand e-commerce are in conflict with each otherFa Fa Fa Wai WaiStuck in trouble. LuxuryThe focus is on social distancing and value, while e-commerce pursues cost-effectiveness and low cost. In addition,LuxuryofSupplyThe problem has also brought challenges to e-commerce, and getting the best has become a problem for e-commerce. Together, these factors contribute:Fa Fa Fa Wai WaiThe failure of people to realize againLuxuryIt's not easy to combine with e-commerce. Both in the domestic and international markets,Luxury e-commerceIt is difficult to achieve sustained success in this highly competitive and high-quality market. This is also for the futureLuxury e-commerceThe development of the country raises more challenges and reflections.