Luxury platform Farfetch agreed to acquire LA-based beauty retailer Violet Grey for an undisclosed sum ahead of its planned launch into the category later this year.

WHO: Violet Grey, founded in 2013 by Cassandra Grey, was built around the belief that customers want to feel confident in their purchase decisions when it comes to beauty. Its beauty platform and storefront on Melrose Place in Los Angeles offers a curated fusion of cult products and traditional staples, underpinned by a unique editorial aspect combining inspiration, education, and product recommendations.

Farfetch Limited is the leading global platform for the luxury fashion industry. Founded in 2007 by José Neves and launched in 2008, Farfetch began as an e-commerce marketplace for luxury boutiques around the world. Today, the Farfetch Marketplace connects customers in over 190 countries and territories with items from more than 50 countries and more than 1,400 of the world's best brands, boutiques, and department stores, delivering a truly unique shopping experience and access to the most extensive selection of luxury on a single platform. Farfetch's additional businesses include Browns and Stadium Goods, which offer luxury products to consumers, and New Guards Group, a platform for the development of global fashion brands.

WHY: The acquisition of Violet Grey brings industry expertise as well as a curated selection of products to be offered on the Farfetched Marketplace, and expands the beauty curator's reach to extend to Farfetch's global customer base.

IN THEIR OWN WORDS: Stephanie Phair, Chief Customer Officer, Farfetch, said, "The acquisition of Violet Grey is an important step ahead of the launch of Beauty on Farfetch later this year and will form part of our overall beauty strategy 'palette.' It will enable us to offer our informed and engaged customers a curated selection of the industry's most sought-after products on the Farfetch Marketplace, joining a world of beauty brands, from the iconic leading global brands, to smaller brands with a cult following.

“Our aim for Beauty on Farfetch is to provide the world's most expansive, curated edit of the best products to serve customers across ages, races, cultures and genders in an 'Only on Farfetch' way. We'll be able to show our customers an immersive crossover between fashion and beauty, leveraging our innovation capabilities to offer exciting features for our customers. Farfetch will bring together niche and global brands to transform the beauty retail experience, creating an environment that offers beauty without boundaries.

“As a Marketplace, we are uniquely positioned to be able to offer multiple points of view and voices in this important category, so customers can find the products and expertise that speak to them. The addition of Violet Grey and Cassandra Grey joining the team will form an important element of this overall strategy. Cassandra has built true authority in the beauty industry and has an incredible, intuitive understanding of where beauty is going and what customers want."

Cassandra Grey, founder of Violet Grey, said, "Violet Grey was founded with a simple, straightforward mission—to enable customers to feel confident in their purchase decisions. Our product is trust and we have earned that trust simply by partnering with those who are the best at what they do. This is our not-so-secret sauce, we partner with the best beauty experts to curate the best beauty brands, to ultimately serve a community of customers who subscribe to the notion that only the best will do.

“We've had our eye on Farfetch since its inception and I have long admired José's love of fashion and his inspired mission to connect curators, creatives and customers in a way that revolutionizes the consumer experience and meets us wherever we are. Myself, Sarah Brown and our band of beauty editors could not be prouder or more eager to bring our love of beauty and discerning eye to the Farfetch ecosystem. Most of all we are honored to now get to learn from José, Stephanie Phair, Holli Rogers, and all the other amazing Farfetchers. Now if you will excuse me, I am going to go call my mom and tell her I've made it in the world."

DETAILS:

• Farfetch agreed to acquire Violet Grey for an undisclosed sum. Farfetch declined to comment on the terms of the deal and Violet Grey declined to share annual sales.
• Violet Grey, meanwhile, will continue to exist as a stand-alone business. As part of the acquisition, the beauty retailer will have access to Farfetch's technology, logistics and operations for its stand-alone website and Los Angeles store.
• Violet Grey founder Cassandra Grey will become a global advisor for Beauty on the Farfetch Marketplace and co-founder of NGG Beauty where she will work to incubate and accelerate new brands. Grey will also be Chair of Violet Grey, providing overall strategic and creative direction and continuing to build the community.
• Niten Kapadia, previously VP Operations, Farfetch, takes the role of Managing Director for Violet Grey.
• The beauty section will initially be available in America and Europe, with global expansion rolled out later.
• The brands raised $29.2 million to date in financing. Shiseido took a minority stake in Violet Grey, said to be between $5 million and $10 million in April 2018. In May 2020 Assembled Brands partnered with Agility Capital, a leading venture debt fund, on a $1.35 million senior secured credit facility.
• The acquisition marks Farfetch's first for beauty. Other retailers acquired by Farfetch include Stadium Goods, in 2018, and department store Browns, in 2015.