Farfetch-Violet Grey Partnership Reports Are Premature, Say Sources | The Business of Beauty


The luxury marketplace announced on a February call with investors that it was committed to developing the beauty category in the coming year, although details of what that would look like remain unknown. Now, a report in WWD speculates that Farfetch may enter a partnership — or potentially acquire — Violet Grey, the Los Angeles-based upscale beauty retailer co-founded by Cassandra Grey.

Farfetch and Violet Grey have had discussions several times over the years, but Farfetch is nowhere near finalising its beauty strategy, sources close to both companies told BoF.

While Farfetch’s previous partnership with UK-based Space NK launched in 2016 — a Violet Grey competitor with far greater reach — did not last, Violet Grey’s gold-standard product offering — it sells the crème de la crème of beauty lines, including Augustinus Bader and Westman Atelier — and prestigious reputation with consumers could be an asset. If it develops beauty on its own, it will have to spend time building relationships with beauty brands as it has with fashion.

But does an acquisition make sense? Violet Grey has already raised significant capital — public records show at least $29 million, including a small round of debt financing in April 2020 — but has yet to develop its physical retail network, still an important channel in the beauty category.

Besides Amazon, there has not yet been a beauty marketplace to legitimately challenge Sephora or Ulta, and Farfetch is strategically positioned to develop such a property at the high end of the market.

A representative for Farfetch declined to comment on the rumours and Violet Grey did not immediately respond to a request for comment.



Credit: Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Discover

Sponsor

spot_imgspot_img

Latest

Why Viola Davis’ Makeup Artist Used 3 Shades of Foundation for Her Oscars Look

Viola Davis does no wrong, and apparently, neither does her glam squad.  The star’s carefully constructed Alexander McQueen gown served as the inspiration for...

Shailene Woodley Confirms Aaron Rodgers Engagement On ‘The Tonight Show’ – Hollywood Life

Shailene Woodley and Aaron Rodgers really are getting married! She confirmed to Jimmy Fallon that the NFL star popped the question to her...

Vogue Russia March 2021 Irina Shayk Natalia Vodianova Tanya Churbanova

All 27 editions of Vogue have united for the theme of creativity this month. But truth be told, the majority have flopped. (Prime...

The Top 10 Anti Aging Ingredients Dermatologists Recommend

There are so many new face care products out in the market packed with tons of ingredients. Some are old, some are new,...
INTERNATIONAL »