THE WHAT?  Coupang, Inc., a leading global retailer, has announced its intention to acquire Farfetch Holdings plc, an established online luxury retailer. This move aims to position Coupang as a significant player in the global personal luxury goods market, which is valued at approximately $400 billion.

THE DETAILS  The acquisition leverages Coupang’s expertise in operations and logistics with Farfetch’s prominence in the luxury market. This strategic merger is expected to improve customer experiences worldwide and expand Coupang’s reach in the South Korean luxury goods market, known for its high per-capita spending. Additionally, Farfetch will receive $500 million of capital to further develop its technology and extend its global reach.

THE WHAT? This acquisition is part of Coupang’s strategy to expand into the luxury goods segment and enhance its online retail presence. Bom Kim, Coupang’s CEO, highlights Farfetch’s influence in online luxury retail and the potential for growth post-acquisition. José Neves, CEO of Farfetch, anticipates that Coupang’s expertise will improve service for Farfetch’s partners and customers. The transaction was financially supported by Greenoaks, a global investment firm partnering with Coupang in this acquisition.