📊 Farfetch's Contribution
Farfetch, acquired by Coupang in January 2024, generated $460M in Q2, up from $288M in Q1. This added to Coupang’s total revenue of $7.3B, a 25% YoY increase. Farfetch's 26M monthly visitors surpassed its top competitors, showing early signs of success under Coupang’s leadership.
🚨 Challenges Faced
Despite Farfetch's revenue contribution, Coupang reported a $105M net loss in Q2. The loss was largely due to a $121M fine imposed by Korea's Fair Trade Commission for allegedly favoring its private-label goods over third-party merchants. Operating losses at Farfetch also contributed.
👨💼 Leadership Changes
In a bold move, Coupang's CEO Bom Kim took over Farfetch’s management in February 2024. Farfetch's founder José Neves stepped down, and several top executives were replaced. A Coupang spokesperson said these changes were necessary to secure Farfetch’s future and focus on delivering exceptional experiences for its customers.
🌍 Looking Forward
Coupang’s Bom Kim remains optimistic about Farfetch's future, emphasizing the company's potential. "We see massive potential that is still largely untapped," he said. Kim aims for Farfetch to reach close to positive EBITDA by the end of 2024, maintaining a strategy of disciplined investment and operational excellence.
Can Bom Kim transform Farfetch into a luxury market leader?
