11 April 2022
We have served as legal counsel to the leading global platform for the luxury fashion industry FARFETCH on its global strategic partnership with Neiman Marcus Group (NMG), including expanding Bergdorf Goodman’s e-commerce capabilities and reach and NMG committing to using select FPS modules, including foundational international services.
As part of its commitment to the partnership and NMG’s long-term success, FARFETCH will make a minority common equity investment of up to $200 million in NMG, joining existing investors including PIMCO, Davidson Kempner Capital Management, and Sixth Street. NMG will use the proceeds to further accelerate growth and innovation through investments in technology and digital capabilities.
The partnership brings together the resources of two industry leaders with a shared commitment to creating a seamless experience for customers. FARFETCH has invested for many years in its Luxury New Retail vision through its differentiated global technology platform. Neiman Marcus and Bergdorf Goodman have pioneered and continued to redefine luxury retailing in the United States, with exclusive products, an omnichannel offering and a team of more than 3,000 talented selling associates, which enable NMG to have an unmatched relationship with the luxury-obsessed customer.
Through this agreement, NMG will utilise FARFETCH Platform Solutions (FPS) to re-platform the Bergdorf Goodman website and mobile application. As a result, Bergdorf Goodman will introduce its digital customer experience and curated offering to customers globally, integrating seamlessly with the iconic New York City flagship. Additionally, Neiman Marcus is committed to using select FPS modules, including foundational international services. Both Bergdorf Goodman and Neiman Marcus will join the FARFETCH Marketplace as a partner, adding participating brands in key global geographies.
Commenting on the partnership, Graham Hann, commercial technology and data partner, said: "FARFETCH's bold and innovative plans for the future with its Luxury New Retail vision meant its strategic partnership with NMG was an excellent opportunity to further the brand. We've worked closely with FARFETCH to make this next step in its growth a seamless experience. This partnership marks an exciting and pivotal step in FARFETCH's journey, which we're delighted to have advised on."
“I believe the U.S. luxury market is at a pivotal point,” said José Neves, FARFETCH Founder, Chairman and CEO. “Whilst the U.S. is proving to be a long-lasting source of growth for the luxury industry, fuelled by younger generations who are highly engaged with the category, businesses will have to significantly upgrade their digital capabilities – powering both online and offline customer journeys – to meet these new customer expectations and stay ahead in what is going to be a competitive space in the coming years.”
Neves continued, “I greatly admire the Neiman Marcus Group, for its distinguished role in our industry both with Neiman Marcus and Bergdorf Goodman, and also for its stellar management team, including Geoffroy and Darcy. We share the same unwavering vision for the future of luxury, with the customer at the centre of all we do. This partnership is about revolutionizing the luxury landscape globally, both online and offline, by combining NMG’s iconic presence in the U.S. and FARFETCH’s Luxury New Retail vision and technology.”