Luxury fashion platform Farfetch is investing in US retailer Neiman Marcus Group (NMG) as part of a new global strategic partnership between the two companies.
Farfetch said it will make a minority common equity investment of up to 200 million dollars in NMG, joining existing investors including PIMCO, Davidson Kempner Capital Management, and Sixth Street.
“I believe the US luxury market is at a pivotal point,” said José Neves, the founder, chair and CEO of Farfetch.
He said that while the US is proving to be “a long-lasting source of growth for the luxury industry”, businesses will have to “significantly upgrade their digital capabilities” to stay ahead in the competitive space.
“This partnership is about revolutionizing the luxury landscape globally, both online and offline, by combining NMG’s iconic presence in the US and Farfetch’s Luxury New Retail vision and technology,” Neves said.
Farfetch and NMG announce partnership
NMG said it will use the investment to further accelerate growth and innovation through investments in technology and digital capabilities.
In addition, the partnership will see NMG utilize Farfetch Platform Solutions (FPS) to re-platform and power the website and mobile application of NMG’s Bergdorf Goodman brand.
Geoffroy van Raemdonck, CEO of Neiman Marcus Group, said: “[Neves] 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.”