- Danielle Wightman-Stone |
Farfetch has launched a new initiative ‘Farfetch for all’, which offers all of its 1,300 employees from junior staff to executives across 11 offices globally share options in the company, as a way to reward its staff for a profitable 2016.
Although Farfetch remains privately owned, the fashion group, which includes Farfetch.com, Browns, Black & White, and Store of The Future, will adopt the style of a publicly quoted company. The initiative will equate to an investment of 40 million dollars, based on the latest company valuation, which is the single largest investment the company has made to date, and is part of its strategy to invest in its people.
José Neves, chief executive and founder of Farfetch, said: "We have enjoyed outstanding success. The Farfetch Group is reshaping the role of technology within the luxury fashion sector. While doing that, we have become one of only 200 private companies globally to have achieved a valuation of over 1 billion dollars.
“We are very proud of our achievements and want to reward our people who have helped to bring them to fruition. Our company culture and values have been built around the importance of working together and aspiring to a common vision. By launching 'Farfetch For All' we are reinforcing this message to our people and rewarding all who have participated in this journey so far; as well as hoping to attract new talent who embrace these values as we look to the future.”
Farfetch reward a profitable 2016 with a share option scheme for all employees
The announcement follows a strong year for the luxury fashion group, which grew 70 percent in 2016, based on the value of goods traded across the platform.
In the three months ending December 31, 2016, which includes the pre-Christmas trading period, the growth rate at Farfetch.com was 75 percent, and the site delivered “significant underlying profitability”, said the online retailer.
Farfetch said future growth will come through innovation and it will continue to invest in building a platform business that is API enabled to drive growth, as well as third-party partnerships and access to new markets. Its Store of the Future project is focused on redefining the omnichannel retail experience for the customer, by leveraging the retail experience of brand and boutique partners. Key elements and details of this will be discussed at the FarfetchOS event that will take place in London on April 12.
Founded in 2008 by Portuguese entrepreneur José Neves, Farfetch is an e-commerce platform that partners with the world's best luxury boutiques and brands, the site is translated in 9 languages and services customers as a website and app. It has offices are found in 11 cities globally and Farfetch express ships from partners to over 190 countries worldwide.
In 2015, Farfetch developed Farfetch Black & White and Store of the Future to provide key technology and business solutions for brands and retailers, and it also added London boutique Browns to its portfolio. Last year the retail group secured Series F round of investment of 110 million dollars, led by new investors Temasek, IDG Capital Partners and Eurazeo with existing investor Vitruvian Partners.
Image: Farfetch website