DTC’s Daily Digest brings you the latest news about the world's fastest growing brands. In today's edition: Farfetch acquires New Guards Group; Blue Apron and Jet.com cut ties; and Nike boosts DTC with Celect.
Farfetch acquires New Guards Group
Electronic Retail Farfetch she has Confirmed the purchase of Milan-based New Guards Group, Get a range of brands like Off-White, Heron Preston and Palm Angels. The deal, which will give Farfetch 100% of the shares of New Guard Group, is worth US $ 675 million (£ 559 million).
This purchase is the first major step taken by Farfetch in London towards direct participation in fashion, where it currently operates as an online store of third-party brands, rather than internal products. In fact, Farfetch confirms that this acquisition will add the “brand platform” layer to the Farfetch platform – to expand the company's pre-production proposal by expanding its capabilities to now include design, production and brand development. "
It seems that the new guard will not be completely swallowed by Farvich, it seems. Farfetch cites strong new guard revenues (US $ 345 million / £ 286 million over the past year) as evidence that the company in Milan needs a partner that will enhance, not contradict, its potential, presumably allowing two entities to coexist forward. .
Blue Apron and Jet.com cut ties
Blue apron Announced that it is Terminate its partnership with Jet.com backed by Walmart. The partnership, which began in October last year, allowed the meals company to offer a full list of items on the e-tailer platform and mobile phone.
Linda Vindley Kozlovsky, Chairman and CEO of Blue Apron, announced in the company's second-quarter earnings call that she hopes instead to focus on the “core business” of direct sales to the company.
“The unit's economies are strong in a direct consumer model, avoiding many challenges like inventory management and contraction. We will end up with our pilot with Jet.com in the next few weeks. Our platforms through a direct to consumer service. "
She outlined the ways Blue Apron is looking for new customers, noting that the trend of eating fresh at home continues to rise. This, along with the convenience of meal packages, are advantages of the company.
Nike boosts DTC with Celect
Nike Dick Predictive analyzes were purchased by Celect To enhance its direct consumer strategy, helping them to serve customers personally on a global scale. The cloud-based Celect platform provides data to help retailers improve their inventories through expectations of strong domestic demand.
By integrating Celect technology into Nike's mobile apps and websites, the sportswear maker aims to predict how and when consumers buy certain patterns. According to CNBC, Nike chose to buy the startup rather than spend several years embracing a similar technology in the company.
DTC sales also give Nike a faster look at consumer demand compared to orders from retail chains like Foot Locker. Celect technology can help Nike strengthen this strategy by optimizing its inventory across channels through highly localized demand forecasts to make sure customers can find and buy what interests them. On technology and meet local demand to deliver those experiences.
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