Farfetch embraces pre-loved designer handbags
Luxury fashion platform Farfetch is launching an online pilot to support its sustainability strategy: the name of the game is used designer handbags, and Farfetch hopes to contribute to a circular fashion economy by buying and selling them online. The company says it will let users trade in “pre-loved” luxury handbags in exchange for Farfetch credits to use on its platform. And then sell them on to customers who may otherwise have bought new bags. It’s a canny way to keep people on its platform and boost sales, all while helping the environment.
Farfetch’s share price has appreciated by 33% so far this year
Source: Yahoo Finance
Farfetch is making headway in the sustainable space for two reasons: first, as tech gets better and consumers go green, being sustainable is a great way to run a more efficient business; and second, there is, of course, an ethical dimension to sustainability. With a changing climate and growing population, if companies want the world of the future to be conducive to business, they have to start managing their impact on the environment. Very few business models thrive in apocalyptic wastelands.
Farfetch’s chief commercial and sustainability officer, Giorgio Belloli, said: “Luxury fashion is increasingly aligned with sustainable fashion. Resale is an area of increasing interest for our customers. Like the online luxury market, the pre-owned luxury market is growing rapidly, and is likely to double in size to reach $51bn over the next five years. A luxury re-sale programme like Farfetch Second Life allows us to enter this market and test the demand of Farfetch customers for this kind of service.”
Dominion holds Farfetch in its Global Trends Luxury Fund.
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