Transaction precedes launch of FARFETCH’s broader Beauty proposition later in the year
LONDON, U.K. January 28th, 2022 – FARFETCH Limited (NYSE: FTCH), the leading global platform for the luxury fashion industry, today announced it will acquire luxury beauty retailer, Violet Grey, for an undisclosed sum. Since launch, Violet Grey has become a renowned beauty destination and elevated content channel, and been the launchpad for many of today's most iconic global beauty brands. The company has built a devoted community who love the brand for its expertise and the trust they’ve built amongst customers. The acquisition comes ahead of the launch of Beauty on the FARFETCH Marketplace, which is scheduled for later in the year.
The acquisition of Violet Grey brings industry expertise as well as a curated selection of products to be offered on the FARFETCH Marketplace, and expands the beauty curator’s reach to extend to FARFETCH’s global customer base. Violet Grey will also leverage Farfetch Platform Solutions’ expertise in technology, global logistics and operations in continuing to drive its standalone business, comprised of VioletGrey.com and its Los Angeles retail store. Upon completion, Violet Grey founder, Cassandra Grey, will become a global advisor for Beauty on the FARFETCH Marketplace and Co-founder of NGG Beauty where she will work to incubate and accelerate new brands. Grey will also be Chair of Violet Grey, providing overall strategic and creative direction and continuing to build the community that Violet Grey is known for. Niten Kapadia, previously VP Operations, FARFETCH takes the role of Managing Director for Violet Grey. Completion is subject to customary closing conditions, including the consent of Violet Grey’s existing shareholder base.
FARFETCH’s beauty proposition, which is due to launch later this year, will offer FARFETCH’s extensive Millennial and Generation Z luxury audience a unique experience for discovering and shopping for beauty. It will allow customers to access insights and expertise from multiple beauty experts and communities, including the Violet Grey community. For brand partners, FARFETCH’s expansion into Beauty provides an opportunity to reach FARFETCH’s millions of engaged luxury customers through co-branding and marketing opportunities to target the global Luxury Beauty market, estimated to be almost $USD 69 billion and the second largest category within the global Personal Luxury market, after Leather Goods, and ahead of Apparel[1].
Stephanie Phair, Chief Customer Officer, FARFETCH said:
“The acquisition of Violet Grey is an important step ahead of the launch of Beauty on FARFETCH later this year and will form part of our overall beauty strategy ‘palette’. It will enable us to offer our informed and engaged customers a curated selection of the industry’s most sought-after products on the FARFETCH Marketplace, joining a world of beauty brands, from the iconic leading global brands, to smaller brands with a cult following.
Our aim for Beauty on FARFETCH is to provide the world’s most expansive, curated edit of the best products to serve customers across ages, races, cultures and genders in an ‘Only on FARFETCH’ way. We’ll be able to show our customers an immersive crossover between fashion and beauty, leveraging our innovation capabilities to offer exciting features for our customers. FARFETCH will bring together niche and global brands to transform the beauty retail experience, creating an environment that offers beauty without boundaries.
As a Marketplace, we are uniquely positioned to be able to offer multiple points of view and voices in this important category, so customers can find the products and expertise that speak to them. The addition of Violet Grey and Cassandra Grey joining the team will form an important element of this overall strategy. Cassandra has built true authority in the beauty industry and has an incredible, intuitive understanding of where beauty is going and what customers want.”
Cassandra Grey, Founder of Violet Grey said:
“VIOLET GREY was founded with a simple, straightforward mission - to enable customers to feel confident in their purchase decisions. Our product is trust and we have earned that trust simply by partnering with those who are the best at what they do. This is our not-so-secret sauce, we partner with the best beauty experts to curate the best beauty brands, to ultimately serve a community of customers who subscribe to the notion that only the best will do.
We’ve had our eye on FARFETCH since its inception and I have long admired José’s love of fashion and his inspired mission to connect curators, creatives and customers in a way that revolutionizes the consumer experience and meets us wherever we are. Myself, Sarah Brown and our band of beauty editors could not be prouder or more eager to bring our love of beauty and discerning eye to the FARFETCH ecosystem. Most of all we are honored to now get to learn from José, Stephanie Phair, Holli Rogers, and all the other amazing Farfetchers. Now if you will excuse me, I am going to go call my mom and tell her I’ve made it in the world.”
Ends
Media Contacts:
Susannah Clark
VP Communications, Global
susannah.clark@farfetch.com
+44 7788 405224
Brunswick Group
farfetch@brunswickgroup.com
US: +1 (212) 333 3810
UK: +44 (0) 207 404 5959
Investor Relations Contact:
Alice Ryder
VP Investor Relations
IR@farfetch.com
About Farfetch
Farfetch Limited is the leading global platform for the luxury fashion industry. Founded in 2007 by José Neves for the love of fashion, and launched in 2008, Farfetch began as an e-commerce marketplace for luxury boutiques around the world. Today, the Farfetch Marketplace connects customers in over 190 countries and territories with items from more than 50 countries and more than 1,400 of the world’s best brands, boutiques and department stores, delivering a truly unique shopping experience and access to the most extensive selection of luxury on a single platform. Farfetch’s additional businesses include Browns and Stadium Goods, which offer luxury products to consumers, and New Guards Group, a platform for the development of global fashion brands. Farfetch offers its broad range of consumer-facing channels and enterprise level solutions to the luxury industry under its Luxury New Retail initiative. The Luxury New Retail initiative also encompasses Farfetch Platform Solutions, which services enterprise clients with e-commerce and technology capabilities, and innovations such as Store of the Future, its connected retail solution.
For more information, please visit www.farfetchinvestors.com
About VIOLET GREY
VIOLET GREY is a content and commerce destination that connects with beauty consumers through a global community of content creation, product curation, and Hollywood beauty culture. A force rooted in beauty, VIOLET GREY encompasses authority and celebrity, and an obsession with cutting edge innovation. Their unique offering includes niche labels, legacy brands, and exclusives, and their premium video content reimagines a mobile-first content and commerce experience.
Equally authoritative and authentic, VIOLET GREY enlists the expertise of beauty editors, dermatologists, makeup artists, estheticians, hair stylists, and celebrities to test and evaluate the performance and presentation of all product considerations. Only products deemed best-in-class by over 70% of experts are VIOLET CODE APPROVED and added to THE SHELVES. This industry-coveted accolade drives VIOLET GREY's distinct narrative, partnership selections, and in-house productions.
For more information, please visit www.violetgrey.com
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward looking statements, including, without limitation in relation to Farfetch’s acquisition of Violet Grey, and/or the possible future opportunities and benefits thereof, and/or the terms thereof, and/or whether such transaction will reach closing, and/or Farfetch’s broader beauty proposition and assumptions underlying all such statements, as well as statements that include the words “expect,” “intend,” “potential”, “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including the factors discussed under the caption “Risk Factors” in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) for the fiscal year ended December 31, 2020, as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investors page of our website at www.farfetchinvestors.com. In addition, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
[1] Bain Altagamma Luxury Study 20th Edition, November 2021. 2021E global market size for Luxury Beauty: €60B ($68.9B using USD/EUR exchange rate as of 11 November when the report was published