1. Abstract

1. ABSTRACT

CONTEXT The Covid-19 pandemic impacted the premium and luxury fashion industry immensely, with the lack of offline shopping, travelling, and the emergence of a new, luxury customer. Generation Z and Millennials demand transparency, authenticity, sustainability, and immersive, convenient, and personalized experiences from the brands they shop from. As the industry recovers from residual issues, brands need to implement innovative omnichannel marketing and selling methods, in addition to indepth sustainability initiatives, creating added value for consumers. This report investigates two online retailers, Farfetch and Revolve, and their successes during the pandemic. Through critical analysis of the retailers’ business models and strategies, the effectiveness of delivering business aims, objectives, and creating value for customers is explored.

DESIGN & METHODOLOGY This report focuses on three sectors within the Balanced Scorecard: Customer, Learning and Growth, and Environmental perspectives. Business strategies, like marketing approach, omnichannel selling, and sustainability initiatives are compared between Farfetch and Revolve. Throughout the pandemic, the two retailers experienced profitability and gained market share, as competitors faced issues with their strategies. After critical analysis of secondary and primary research, strategic recommendations are specified in order to mitigate risks, while being able to exploit opportunities for future success.

KEY FINDINGS The results of exploring academic sources, conducting a survey and a comparative shop, and using data from EDITED exhibited that Revolve creates value through their marketing approach and Farfetch through innovative, omnichannel offerings and sustainability initiatives. Strategic recommendations provided to Revolve include investing in more advanced technology to create a more immersive customer experience and create a comprehensive sustainability plan. It is suggested that Farfetch should enhance their marketing approach to effectively target customers.

KEYWORDS Added-value, omnichannel, marketing, innovation, sustainability, online shopping, customer experience, premium/luxury fashion, Covid-19 pandemic, business models, retail strategies

TABLE OF CONTENTS

1. Abstract ……………………………………………………………………………………. 1

Table of Contents ……………………………………………………………………….. 2 - 3

List of Figures 3

2. Introduction …………………………………………………………………………… 4 - 5

3. Chapter One …………………………………………………………………………... 6 - 9

3.1. Situation Analysis ………………………………………………………. 6 3.2. Farfetch ………………………………………………………………. 7 - 8 3.3. Revolve ……………………………………………………………… 8 - 9

4. Chapter Two ……………………………………………………………………….. 10 - 17

4.1. Customer Perspective 10 - 12 4.2. Learning & Growth Perspective 12 - 14 4.3. Environmental Perspective 15 - 17

5. Conclusion & Recommendations ……………………………………………… 18 - 19

6. Reference List ……………………………………………………………………... 20 - 26

6.1. Information References 20 - 23 6.2. Images & Figure References 24 - 26

7. Appendix …………………………………………………………………………… 27 - 58

7.1. PESTEL Analysis 27 7.2. FARFETCH Business Model Canvas 28 7.3. REVOLVE Business Model Canvas 28 7.4. Farfetch Marketing Mix 29 - 30 7.5. Revolve Marketing Mix 31 - 32 7.6. Farfetch TOWS/SWOT Analysis 33 7.7. Revolve TOWS/SWOT Analysis 34 7.8. Farfetch Comparative Shop 35 - 43 7.9. Revolve Comparative Shop 44 - 53 7.10. Survey Template & Responses 54 - 58