[Consumerwide - HueSoung Jun Reporter / Yohan Bok Reporter] The domestic luxury e-commerce market is shaking as Coupang takes over Farfetch, the world's largest luxury e-commerce business that distributes the world's best 1,400 luxury brands, including Chanel and Hermès, from 50 nations to over 190 nations, including the UK and US, since 2007 (UK base), centred around boutiques and department stores. It is unknown how Coupang will plan regarding Farfetch. Yet, it is inevitable to shock luxury e-commerce businesses in Korea, including Balaan, Mustit, and Catchfashion. In particular, Balaan has been targeting the global luxury market for the coming year. In the customer aspect, we have an alternative for luxury consumption without having to worry about fake products through Farfetch.

On the 19th, according to a Coupang Inc. press release, Coupang has decided to take over Farfetch Holdings, which is one of the best online luxury businesses. Coupang is planning to offer the best experience to global customers, bouiques, and brands through the excellent facilities of Coupang and the most sustainable luxury business from Farfetch.

They are retaining a variety of solutions in combination with the latest technology, luxury, and e-commerce while owning a number of luxury brands from the New Guards Group, including the streetwear luxury brand "Off-White and Palm Angels," British luxury brand Browns, and Stadium Goods of the US. By taking over Farfetch, Coupang is standing as a global distribution business that owns an e-commerce network throughout 190 countries along with the world's most popular luxury brands.

CoupangInc is supplying customised high-edge technology to exclusive Farfetch brands and boutiques while investing 650 billion won (0.5 billion USD) to bring in world-famous designers to approach global consumers. Accordingly, Farfetch will turn private from public in the NY stock market (2018). Meanwhile, Coupang stood as a leading company in the global personal luxury goods industry, which measures about 520 trillion won (400 billion USD). In particular, Coupang is taking an outstanding position in the Korean market, which is known for the highest spending on luxury at the individual level.

Kim Beomseok, CoupangInc founder and CEO, said, "Farfetch is a landmark business in the luxury sector, which demonstrates the future of luxury through an online form. For the coming time, Fatfetch will strive again to offer top-notch customer experiences for outstanding global brands while targeting solid and stable growth as a private company. I perceive that they are facing a remarkable opportunity to redefine luxury customer experiences."

It's been predicted that Coupang is targeting the domestic luxury e-commerce market by integrating the Farfetch and Rocket delivery systems, whereas they approach the global market by applying the Rocket delivery system to the Farfetch distribution network. In specific, when Chanel and Hermès bags are ordered at Coupang, customers get them the next day early in the morning.

Balaan took the top spot in the domestic luxury market by recording 680 billion won in 2022 turnover rates. Their competitive businesses recorded approximately 500 billion won (TranB) and 380 billion won (Mustit). Balaan is aiming to approach 1 trillion won in yearly turnover by 2025 after turning into surplus this year. Currently, Balaan has been getting ready to enter the overseas market, whether directly or through partnerships with overseas apps. Nevertheless, it seems a tectonic shift was inevitable in the Korean luxury e-commerce market when Coupang began entering full scale. Regarding this, an associated person from Balaan said that it always happens in the market. Thus, Balaan will continually strengthen brand competitiveness. Mustit has not responded officially.