Farfetch buys Luxclusif as luxury resale grows fast
Another day, another resale story. Luxury fashion e-tail giant Farfetch has announced the purchase of resale platform Luxclusif for an undisclosed sum.
The acquisition comes with a technology platform and a team that will now join Farfetch.
The move will allow the latter to “significantly accelerate its resale capabilities through the development of key technology and service features such as automated pricing, and faster geographic and category expansion of its resale service, Farfetch Second Life”.
It's part of a wider trend fed both by sustainability awareness and consumer interest in accessing quality luxury items at more affordable prices. This has led to an explosion in resale sites as well as in activities like fashion rental across the price scale. Only yesterday, Burberry entered the rental and resale sector for the first time in a deal with My Wardrobe HQ.
Founded in 2013, Luxclusif is described as “a B2B service provider with a successful turnkey solution enabling the acquisition, authentication and sale of second hand luxury goods to and from auctions, retailers, e-commerce platforms, and stores worldwide”.
The firm and its new parent company said they can now leverage these capabilities and positioning to “become the global platform for pre-owned luxury for both customers and industry partners”.
Farfetch has actually worked closely with the business for a number of years, first through its start-up accelerator program and most recently through its own resale service. Luxclusif provided the platform in Europe to authenticate, price and then sell on pre-owned handbags submitted to the Second Life programme by customers in exchange for Farfetch credit.
The Luxclusif team will continue to operate the Second Life platform service, integrating both existing and new partners into the program. Additionally, it will continue to sell pre-owned product it acquires from specialist suppliers and luxury consumers through Second Life or though similar programs operated for other luxury industry partners.
Giorgio Belloli, Farfetch’s Chief Commercial and Sustainability Officer, said the buy “allows us to expand the company’s pre-owned offer for our customers, for brand and retail partners and for other suppliers of pre-owned products. We aim to become the leading global platform for pre-owned luxury. The pre-owned market is growing extremely fast and is increasingly important to both luxury customers and to the luxury fashion industry as a whole.”
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