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Published
Nov 25, 2021
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Farfetch, Clipper Logistics form JV for global luxury e-fulfilment solution

Published
Nov 25, 2021

Farfetch has announced a new joint venture with UK-based logistics giant Clipper Logistics to create a global e-fulfilment solution dedicated to the luxury industry. The JV will enhance the e-tailer’s existing Fulfilment by Farfetch offer of logistics and warehousing solutions.


Farfetch



Clipper, which has deals with many major fashion retailers, including ASOS, River Island, Joules and JD Sports as well as Farfetch, will work with the retailer to create a “unique logistics offering”. It will handle inventory from Farfetch's group of companies including Browns and New Guards, as well as products from other luxury brands. And it will “specialise in the complex and highly demanding fulfilment requirements of the global luxury goods sector”.

The companies said that by combining Clipper's “expertise in full end-to-end online logistics and technical solutions with Farfetch's carrier and duty management systems, and deep expertise and relationships in the luxury industry, the joint venture will offer a world-class, global fulfilment solution specifically focused on the needs of luxury businesses”.  

It’s expected to launch early next year — 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”.

The two companies will own exactly half each of the new operation.

Logistics has never been more of a focus for companies as e-commerce continues to grow and global supply chain issues create headaches for brands. Underlining the importance of logistics, we’ve also seen an increasing trend of businesses creating new logistics leadership roles and appointing these key senior team members to their boards.

And just like Richemont’s announcement earlier this week of its major new IT infrastructure deal with Amazon Web Services, fashion businesses are increasingly choosing to bring in external specialist firm to do the things that aren’t in their own areas of expertise.

Farfetch COO Luis Teixeira 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. 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.”

And Clipper executive chairman Steve Parkin added: “The luxury goods sector is going through a period of transformation. 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.”

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