Shares of luxury online marketplace Farfetch surges 53 percent in IPO’s first day of trading
Many congratulations to London’s Farfetch, the fashion marketplace and Renovata client, on a hugely successful market debut. CNBC reports that the business opened 50% up on Friday September 21st, peaking on the day at $30.60 per share following a purchase peg of (an already increased) $20.00.
CNBC notes that Farfetch’s success is based on its position as a platform for high-end retail, rather than a retailer in its own right – which means that the business neither has to hold expensive stock, nor ride the uncertainties of changing consumer sentiment.
Indeed, Farfetch has carefully trodden this path throughout its growth; from its beginnings as a bazaar in which local/one-outlet boutiques could leverage a global audience, through to today’s end-to-end offering to high-end brands: service, shipping, and above all, brand protection.
The journey continues with significant investment in bricks-and-mortar to envision the luxury retailer of the future.
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