Very interesting read. Thank you for posting. My understanding is $FTCH take rate is 30-35% which is fairly high. Despite this, profitability is low as they have to do a lot (authenticate, photo, list, distribute etc.). What do you think of their eventual margins? Also, do you have any view of what Richemont is trying to do? They themselves have a failing online venture but they hold a lot of sway in the industry. There has been no announcement from either side on a deal.
For the marketplace, targeted margins are EBITDA/Revenues of 30%. Richemont's YNAP will be powered by Farfetch's FPS and convert into a hybrid 1P/3P model. And YNAP will receive an investment from Farfetch and possibly others becoming a controlling shareholder neutral entity. Richemont will proceed normally in their business while being a part of the Chinese JV deal explained in the post.
Questo è un articolo molto utile e interessante!
Mille grazie Giorgio!
Very interesting read. Thank you for posting. My understanding is $FTCH take rate is 30-35% which is fairly high. Despite this, profitability is low as they have to do a lot (authenticate, photo, list, distribute etc.). What do you think of their eventual margins? Also, do you have any view of what Richemont is trying to do? They themselves have a failing online venture but they hold a lot of sway in the industry. There has been no announcement from either side on a deal.
For the marketplace, targeted margins are EBITDA/Revenues of 30%. Richemont's YNAP will be powered by Farfetch's FPS and convert into a hybrid 1P/3P model. And YNAP will receive an investment from Farfetch and possibly others becoming a controlling shareholder neutral entity. Richemont will proceed normally in their business while being a part of the Chinese JV deal explained in the post.