Joint venture to create e-commerce fulfilment solution for luxury goods
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Leeds-based Clipper Logistics and Farfetch, a platform for the luxury fashion industry, are establishing a joint venture company to create a global e-commerce fulfilment solution for luxury brands.
The Joint Venture will provide a logistics offering for inventory from Farfetch’s group of companies including Browns and New Guards Group, as well as products from other luxury brands, that will specialise in the complex, demanding fulfilment requirements of the global luxury goods sector.
By combining Clipper’s expertise in end-to-end online logistics and technical solutions with Farfetch’s carrier and duty management systems, and deep expertise in the luxury industry, the JV is intended to offer a “world-class” fulfilment solution focused on the needs of luxury businesses.
It is expected to launch in early 2022 subject to relevant regulatory approvals, and will offer online fulfilment services in key territories in Europe, Asia and North America with plans to further expand in the medium term.
Farfetch and Clipper will each own 50% of the Joint Venture.
Steve Parkin, executive chairman of Clipper, said: “The luxury goods sector is going through a period of transformation and we’re delighted to extend our relationship with Farfetch to meet these new demands with a global e-fulfilment solution.
“The partnership of our market leading technology and expertise with Farfetch’s global brand and operating expertise will create a unique and fully integrated international offering for stock from Farfetch’s group of companies including Browns and New Guards Group, as well as stock from other luxury brands.
“As consumer behaviours evolve and a rising number of high-end purchases are made online, we are proud to help luxury brands accelerate growth in the online retail space.
“This Joint Venture is fully aligned with our global ambition and another transformational step forward for Clipper as we innovate the logistics space.”
Luis Teixeira, chief operations officer, Farfetch, said: “We’ve had a very successful relationship with Clipper for a number of years and are delighted to take this opportunity, creating a dedicated logistics offering for luxury brands.
“We believe there is a gap with respect to the very specific value-added services required for high-end brands and boutiques, including being able to handle logistics consistently through one global offering, and provide solutions for high value goods, such as watches and fine jewellery.
“Our joint venture with Clipper will bridge this gap. It will also enable us to move stock closer to the customer through a global warehousing footprint.”