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The Start-Ups Defying the Luxury E-Commerce Slump

It’s been a tough year for luxury e-commerce — but a crop of smaller marketplaces are beating the odds with a focus on emerging accessible luxury brands and a firmer grip on operating costs.
Marketing image from Cult Mia
Cult Mia is one of the smaller e-commerce luxury marketplace seeing consistent sales and profit growth amid a sector-wide slump. (Cult Mia)

Last autumn, as marquee luxury e-tailers Farfetch and Matches scrambled to secure additional funding in order to avoid bankruptcy, a newer luxury marketplace was facing the opposite scenario.

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Further Reading

For Luxury E-Commerce, It’s Even Worse Than It Looks

US consumer spending across online luxury sellers like Farfetch, Matches and Net-a-Porter suffered sustained declines throughout 2023. The question is whether the downturn is simply temporary or the luxury e-commerce model itself is broken.

Why Online Luxury Is Broken

Reports of financial strain at Farfetch amid a stalled deal with YNAP has driven confidence in multi-brand e-commerce to all-time lows. With value propositions eroding and investment drying up, a way forward remains unclear.

About the author
Malique Morris
Malique Morris

Malique Morris is Senior E-Commerce Correspondent at The Business of Fashion. He is based in New York and covers digital-native brands and shifts in the online shopping industry.

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