[ad_1]
<div _ngcontent-c15 = "" innerhtml = "
(Photo by David M. Benett / Dave Benett / Getty Images)
The Farfetch IPO, launched today at a price of $ 20 per share, is estimated to be between $ 17 and $ 19. Reports indicate that anticipated transactions jumped 52% "investors placed their bet on the company's technology and its unique niche in high-end luxury, "said CNBC.
This valuation puts Farfetch at $ 6.2 billion, which is staggering for a company that has not yet made a profit and lost $ 112 million last year with sales of $ 386 million.
The comparisons with the 1997 filing of Jeff Bezos and Amazon IPO come immediately to mind. At that time, Amazon was a small bookseller specializing in e-commerce, with fewer than 300 employees and a business turnover of just under $ 16 million, with losses of nearly $ 6 million. dollars.
Bet on the long tail
Amazon's API recorded an impressive growth rate of 2,982%, from $ 511,000 in 1995 to $ 15.75 million in 1996. The IPO brought $ 54 million to Amazon.
Since its inception, Bezos has focused relentlessly on long-term growth, knowing that at some point the benefits would follow. In its first year of operation, government sales increased by 838% to $ 147.8 million, but sales also increased. It was not until the fourth quarter of 2001 that the company made a profit, but it was only $ 5 million.
From the first day, Bezos had a look beyond the books, at the time a $ 26 billion market. "Our goal is to move quickly to consolidate and expand our current position as we begin to pursue e-commerce opportunities in other areas," he wrote in the 1997 letter to shareholders.
Bezos had a vision and built a business model for ecommerce online that he tested in a single vertical field – books – but which he knew he also had applications in many other categories.
And now 21 years later, Amazon sells everything, from A to Z online, as its logo highlights, and offers cloud computing, advertising and media services, as well as retail sales by Whole Foods and his partners. growing chain of Amazon Go stores. With his vision and focus, Jeff Bezos is now the richest man in the world.
The value of Farfetch lies in its business model
Bezos did it by building Amazon on a new business model suited to this era of the Internet: the Platform Business Model, which Alex Moazed and Nicholas Johnson of Applico call "Modern Monopolies", in their book of the same name.
This is the same business model that Jose Neves used to build Farfetch. Both Bezos and Neves understand that retail is no longer about the "what" but the "how".
Certainly, the world of luxury fashion in which Neves operates is both more glamorous and infinitely more complicated than was the book at the beginning of Bezos. And Neves has the distinct advantage of standing on the shoulders of Bezos, who has been able to go ahead with an idea that no one else than himself could have imagined.
But here too, Neves is not driven by the fact of having to build gigantic infrastructure and physical warehouses that the Amazon of Bezos needs.
Unlike Amazon, Neves's Farfetch business is a pure gaming platform whose value is based on creating "value by facilitating exchanges between two or more independent groups, usually consumers and producers," says Moazed. .
Farfetch never takes physical control of the products sold, but facilitates the exchange between buyers and nearly 1,000 sellers, including 614 retailers and 375 luxury brands. It is simply the intermediary between the shops that own the products and the buyers who want the products. Farfetch sellers fill orders.
Amazon still has linear aspects to its largely platform model where it owns some of its inventory and handles shipments. " Platforms do not have, to use a common expression, the means of production, but create the means of connection. Explained Moazed.
Fashion is a fickle business, but Farfetch has what it takes
Farfetch is a true partner of the best fashion boutiques in the world where expertise in fashion and style lies. Farfetch is not in danger as styles change and consumers move on. As a virtual company, she will evolve with them to provide access to new boutiques and brands that meet the call.
Farfetch's business partners have "the best brands and the best buyers with a totally unique perspective on fashion. The only thing they did not have was this online presence, "Neves explained in an interview with Know Flair. "We are a technology platform for the best curators and fashion designers and we are obsessed with offering a truly unique experience to our customers."
In other words, what Farfetch does is give its independent trading partners a genuine, reliable and consistent way to sell its shares in a global market. It truly supports the mission of retailers, unlike Amazon's third-party market, which in many ways is in direct competition with its retail partners and imposes increasingly difficult restrictions on these partners.
Farfetch creates a powerful data-driven technology company, learning what customers want today and applying that information to what they want tomorrow. "Our team [of data scientists] "seeks to develop models to measure propensity to move to a second order, a lasting probability and score clients based on levels of engagement in various scenarios," Neves said.
It also learns what independent retailers want – more sales and customers – and how to build rewarding partnerships with them.
This is what Natalie Massenet, founder of Net-a-Porter and now non-executive co-chair of Farfetch, has described as the emerging collaborative economy, where companies that can normally be considered competitors work together in the same purpose best product and service possible "in the joint Know Flair interview.
"Farfetch enables independent boutiques around the world to reach and sell to a global audience," said Massenet.
It does not take much imagination to see where and how far Farfetch can go if he chooses to look beyond fashion and accessories in other luxury categories with independent retailers. Jewelry seems to be the next logical line of detail, with fashion for home and gifts not far behind.
The wealthy clients that Farfetch has grown, about 2.3 million people, have an appetite for goods and services that go far beyond fashion. And since, according to most estimates, about 75% of retail sales will remain in traditional establishments, there will be countless physically rooted retailers who will want to penetrate the type of customers Farfetch holds online.
I foresee great possibilities for Farfetch in the future. Its platform economic model is the key to this success.
">
(Photo by David M. Benett / Dave Benett / Getty Images)
The Farfetch IPO, launched today at a price of $ 20 per share, is estimated to be between $ 17 and $ 19. Reports indicate that anticipated transactions jumped 52% "investors placed their bet on the company's technology and its unique niche in high-end luxury, "said CNBC.
This valuation puts Farfetch at $ 6.2 billion, which is staggering for a company that has not yet made a profit and lost $ 112 million last year with sales of $ 386 million.
The comparisons with the 1997 filing of Jeff Bezos and Amazon IPO come immediately to mind. At that time, Amazon was a small bookseller specializing in e-commerce, with fewer than 300 employees and a business turnover of just under $ 16 million, with losses of nearly $ 6 million. dollars.
Bet on the long tail
Amazon's API recorded an impressive growth rate of 2,982%, from $ 511,000 in 1995 to $ 15.75 million in 1996. The IPO brought $ 54 million to Amazon.
Since its inception, Bezos has focused relentlessly on long-term growth, knowing that at some point the benefits would follow. In its first year of operation, government sales increased by 838% to $ 147.8 million, but sales also increased. It was not until the fourth quarter of 2001 that the company made a profit, but it was only $ 5 million.
From the first day, Bezos had a look beyond the books, at the time a $ 26 billion market. "Our goal is to move quickly to consolidate and expand our current position as we begin to pursue e-commerce opportunities in other areas," he wrote in the 1997 letter to shareholders.
Bezos had a vision and built a business model for ecommerce online that he tested in a single vertical field – books – but which he knew he also had applications in many other categories.
And now 21 years later, Amazon sells everything, from A to Z online, as its logo highlights, and offers cloud computing, advertising and media services, as well as retail sales by Whole Foods and his partners. growing chain of Amazon Go stores. With his vision and focus, Jeff Bezos is now the richest man in the world.
The value of Farfetch lies in its business model
Bezos did it by building Amazon on a new business model suited to this era of the Internet: the Platform Business Model, which Alex Moazed and Nicholas Johnson of Applico call "Modern Monopolies", in their book of the same name.
This is the same business model that Jose Neves used to build Farfetch. Both Bezos and Neves understand that retail is no longer about the "what" but the "how".
Certainly, the world of luxury fashion in which Neves operates is both more glamorous and infinitely more complicated than was the book at the beginning of Bezos. And Neves has the distinct advantage of standing on the shoulders of Bezos, who has been able to go ahead with an idea that no one else than himself could have imagined.
But here too, Neves is not driven by the fact of having to build gigantic infrastructure and physical warehouses that the Amazon of Bezos needs.
Unlike Amazon, Neves's Farfetch business is a pure gaming platform whose value is based on creating "value by facilitating exchanges between two or more independent groups, usually consumers and producers," says Moazed. .
Farfetch never takes physical control of the products sold, but facilitates the exchange between buyers and nearly 1,000 sellers, including 614 retailers and 375 luxury brands. It is simply the intermediary between the shops that own the products and the buyers who want the products. Farfetch sellers fill orders.
Amazon still has linear aspects to its largely platform model where it owns some of its inventory and handles shipments. " Platforms do not have, to use a common expression, the means of production, but create the means of connection. Explained Moazed.
Fashion is a fickle business, but Farfetch has what it takes
Farfetch is a true partner of the best fashion boutiques in the world where expertise in fashion and style lies. Farfetch is not in danger as styles change and consumers move on. As a virtual company, she will evolve with them to provide access to new boutiques and brands that meet the call.
Farfetch's business partners have "the best brands and the best buyers with a totally unique perspective on fashion. The only thing they did not have was this online presence, "Neves explained in an interview with Know Flair. "We are a technology platform for the best curators and fashion designers and we are obsessed with offering a truly unique experience to our customers."
In other words, what Farfetch does is give its independent trading partners a genuine, reliable and consistent way to sell its shares in a global market. It truly supports the mission of retailers, unlike Amazon's third-party market, which in many ways is in direct competition with its retail partners and imposes increasingly difficult restrictions on these partners.
Farfetch creates a powerful data-driven technology company, learning what customers want today and applying that information to what they want tomorrow. "Our team [of data scientists] "seeks to develop models to measure propensity to move to a second order, a lasting probability and score clients based on levels of engagement in various scenarios," Neves said.
It also learns what independent retailers want – more sales and customers – and how to build rewarding partnerships with them.
This is what Natalie Massenet, founder of Net-a-Porter and now non-executive co-chair of Farfetch, has described as the emerging collaborative economy, where companies that can normally be considered competitors work together in the same purpose best product and service possible "in the joint Know Flair interview.
"Farfetch enables independent boutiques around the world to reach and sell to a global audience," said Massenet.
It does not take much imagination to see where and how far Farfetch can go if he chooses to look beyond fashion and accessories in other luxury categories with independent retailers. Jewelry seems to be the next logical line of detail, with fashion for home and gifts not far behind.
The wealthy clients that Farfetch has grown, about 2.3 million people, have an appetite for goods and services that go far beyond fashion. And since, according to most estimates, about 75% of retail sales will remain in traditional establishments, there will be countless physically rooted retailers who will want to penetrate the type of customers Farfetch holds online.
I foresee great possibilities for Farfetch in the future. Its platform economic model is the key to this success.
