LONDON, UK: Clipper Logistics and Farfetch Limited (NYSE: FTCH) have agreed to establish a joint venture company to formalising the creation of a global e-commerce fulfilment solution for luxury brands. Farfetch and Clipper will each own 50% of the Joint Venture.
The JV will create a unique 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 and highly demanding fulfilment requirements of the global luxury goods sector.
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 focussed on the needs of luxury businesses.
The JV, which is expected to launch in early 2022 subject to relevant regulatory approvals, will offer online fulfilment services in key luxury territories in Europe, Asia and North America with plans to further expand in the medium term.
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.”
Clipper Logistics, which is premium listed on the Main Market of the London Stock Exchange, is a leading provider of value-added logistics solutions, e-fulfilment and returns management services, delivering value-added, consultancy-led services to its blue-chip client base. A profitable and cash generative commercial vehicles business complements the Group’s logistics activities. www.clippergroup.co.uk
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. www.farfetchinvestors.com