Farfetch takes deep dive into Middle East with Chalhoub JV
Farfetch is continuing its global rollout with a new deal for the Middle East that sees it partnering with local major player Chalhoub Group. Chalhoub is an experienced name in the region’s luxury sector and the new joint venture will all Farfetch to make the most of its local retail, distribution and marketing expertise.
Farfetch meanwhile will add its e-tail and logistics skills and its huge network of luxury boutiques to the new operation. The fashion e-tail giant will also open its first regional office to support the new JV with a debut in Dubai.
And as a first step, Chalhoub’s Level Shoes, Level Kids and Tryano are signing on as Farfetch partner boutiques.
The Middle East is one of luxury’s key markets. While Farfetch already operates there, the Chalhoub link should help it significantly ramp up that business as it competes with a fast-expanding Yoox Net-A-Porter, with monobrand designer e-stores and with the luxury sites of the world’s leading department store operators.
And it seems the two partners will be moving fast with Arabic websites set to launch in the first half of this year, more localised products being available on those sites and link-ups with Chalhoub’s existing owned and franchised physical store network beyond the three that have already been named partner boutiques.
Patrick Chalhoub, CEO of the eponymous firm, said the company had wanted to increase its digital offer and the Farfetch link was “an obvious choice” to do this.
Meanwhile Farfetch CEO José Neves said the region “is of great strategic importance” to his company.
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