Analysis: What the Farfetch and Neiman Marcus partnership reveals about the future of luxury

Jose Neves and Geoffroy van Raemdonck

Farfetch is to invest up to $200m (£153m) in Neiman Marcus as part of a wide-ranging partnership. What are the implications of this tie-up for the luxury sector as a whole?

The decision by online player Farfetch to invest so significantly in luxury department store Neiman Marcus illustrates how important a market the US has become for luxury brands, especially following data showing that it has overtaken China for luxury sales. 

GlobalData Retail managing director Neil Saunders says: “For Farfetch, the addition of Neiman Marcus gives it access to a physical retailer that has long had its finger on the pulse of US luxury.

“It will also allow them to learn more about how consumers shop across different channels – a possible prelude to them making further moves into physical or omnichannel retail.”

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