The prestige beauty category is on fire. Procter & Gamble have acquired three high end brands in recent months and prestige beauty sales in the US, the world’s largest single beauty market, rose 30 per cent in 2021.
According to the Bain Altagamma Luxury Goods Worldwide Study, global luxury beauty sales reached US$69 billion in 2021 – nearly 25 per cent of the US$300 billion personal luxury goods sector.
Farfetch, the leading global platform for the luxury fashion industry, announced that it would be making a serious foray into beauty later this year. First in the US and Europe before rolling out to the rest of the world. Founded in 2008, Farfetch connects customers in more than 190 countries, including Australia, and offers products from more than 1400 of the world’s best brands, boutiques and department stores.
Ahead of its landmark segue into beauty, Farfetch has acquired Violet Grey. Founded in 2013 by Cassandra Grey, the US company offers a curated selection of beauty brands though its dedicated website and storefont on Melrose Place in Los Angeles. The selection ranges from pharmacy brands such as Bioderma and Eau Thermale Avène to prestige and niche brands including La Mer, Sisley, M.A.C, Byredo and Augustinus Bader.
Following the buyout, Cassandra Grey will become a global advisor for beauty at Farfetch and Violet Grey will continue as a standalone business. Niten Kapadia, the former VP Operations for Farfetch, will become the Managing Director of Violet Grey.
Shiseido took a minority stake in Violet Grey in 2018 and private equity funds Assembled Brands and Agility Capital engaged with the company in 2020 through a secured credit facility.
The company is the first beauty acquisition for Farfetch. But the platform bought Stadium Goods, the US sneakers and streetwear brand, in 2018 and Browns, the British fashion and luxury goods boutique, in 2015.
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, notes Stephanie Phair, Chief Customer Officer for Farfetch.
“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.”