Luxury retailers have historically been slow to go online. But in the age of coronavirus, digital remains one of the only viable channels.
Kelly Kowal, chief platform officer at Farfetch, is one of the people heralding this transition. Farfetch offers both its own consumer-facing marketplace of luxury items as well as sells white labeled services to brands and retailers that want to create their own online experiences. Both sides of the business have been booming over the last few months, she said on the Modern Retail podcast. "We are seeing a lot of interest from brands and retailers now really understanding how important that e-commerce channel really is," she said.
But the industry is certainly not static. Different regions are seeing varied demands. According to Kowal, that is tied to countries' health and safety. "China, as it's recovering, is doing really well," she said. "The Middle East is doing really well." The only consistent things she's observed is inconsistency. The markets that were once reliable, said Kowal, no longer are. The demand you see one day may be gone the next.
Meanwhile, competition is only increasing. Amazon is beginning to launch its own luxury offerings, giving brands more choices for which platforms they should work with. "We're always watching the competition," said Kowal, adding that Farfetch has a head start. "The difference for us is that we already have 1,300 partners," she said. "We already have the best brands and the best retailers." Amazon may be big and powerful, but it's yet to forge the important partnerships.
In Kowal's eyes, the key is collaboration. Brands and retailers in the luxury space aren't looking for quick marketplaces to drop inventory. "We really genuinely want to be partners," she said. "That's how we see these relationships."