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Announcing her move to Farfetch on Instagram, Massenet wrote: “In 1999, when I first thought about selling fashion online, the world was just waking up to the possibility. Today we expect access to everything, any time, anywhere … If I were starting an e-commerce company today, I would do it very differently.” She believes Farfetch’s business model – it doesn’t own any of the stock, vans or warehouses that allow fabulous frocks and designer bags to be dispatched to fashionistas everywhere – now has the edge over Net-a-Porter’s more traditional approach. While Net-a-Porter runs its own logistics and has warehouses full of clothing that its in-house buyers have selected, Farfetch makes its money by taking a 25%-30% cut of the sales it generates for its partner boutiques and brands. It is a model makes it easier for Farfetch to adapt to a fast-changing fashion market and allows it to tap into trends that a central buying team might not have registered. With no stock on its books, it also has less risk. Massenet is not the only one to have switched allegiance to this upstart rival to her first creation. Venezuelan fashion entrepreneur Carmen Busquets, an early backer of Net-a-Porter, is also now an investor in Farfetch, while a number of senior Net-a-Porter staff have also jumped ship. Farfetch increased sales by more than 60% last year, and Luca Solca, an analyst at Exane BNP Paribas, reckons the platform is on course to overtake Net-a-Porter within the next two years. Analysts believe there are as many as 2,000 boutiques that could eventually join up with Farfetch, while it is also aiming to strengthen and extend its direct relationships with brands and offer a broader array of services.
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