The End of Style.com: Condé Nast Inks New Partnership with Farfetch

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Condé Nast, the American mass media company, launched a magazine empire in 1909 with the purchase of Vogue. The company published many popular and famous magazines, so its potential customers could reach over 300 million individuals. It could be one of the main reasons that Farfetch collaborates with Style.com to increase their target customers. After the e-commerce site of Style.com was relaunched by Condé Nast less than a year, they developed new marketing strategic and decided to have collaboration with Farfetch. Jonathan Newhouse, chairman and chief executive of Condé Nast, already joined the board of Farfetch, and said that “As an early investor in Farfetch, this partnership is the next step in our evolving business relationship. It further unites two leaders in their respective sectors, combining best-in-class content with the world’s leading online luxury shopping destination.” The collaboration will continue to use the 75 employees from Style.com, and Farfetch owns the trademark, the inventory of merchandise, and customer database from Style.com. Why did Style.com decide to do this?

Based on the development of online technology, decreasing of individuals read magazines or books, and it actually significantly declined the sale of print advertising for Condé Nast. In order to remedy the sales, the company invested 100 million dollars in the new Style.com to establish new revenue streams. However, the problem and challenge have met, which is the platform has already missed underlying brands due to new business model. Thus, it is one significant reason that Style.com has collaboration with Farfetch to improve their core competency in content based on strategic investment becuase Farfetch’s earlier investors are Moda Operandi, Rent the Runway, Vestiaire Collective, and the publishing powerhouse. Moreover, for Farfetch, the new partnership could lead their products to connect Condé Nast’s digital and social media content. Thus, both companies could gain benefits from the collaboration. Jose Neves, founder and chief executive of Farfetch told BoF in an interview, “It’s a progression of the same strategy; a strategy that aims to connect the best content in the world with the best commerce in the world. We see ourselves as a platform company. We connect people. We have the curators and the creators of fashion. Now we’re connecting the creators of content. We’re not a magazine. We’re a technology platform and our aim is to connect the best people in this industry.”

The new platform of Farfetch and Style.com has already updated online on 13 June, 2017.

I am Fashion Merchandising major and Business Administration minor at University of Delaware. I am going to graduate at the end of 2017. I am planning to find my careers in New York city after graduation and reach the degree of graduate in the next few years for my next step. It makes me excited to know and enter the fashion industry, and I will dramatically pursue it in the future.

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