Dec 19, 2018, 12:10 PM ETInterview, Fireside Chat

José Neves: Moving Fashion Forward with Technology

Jose Neves founded Farfetch in 2008, though the core concept of e-commerce in fashion was validated in 1996 following online sales to Japan and Hong Kong from his first shoe shop, Swan London.
Farfetch differentiated itself from contemporaries like Net-a-Porter by adopting a zero-inventory, real-time marketplace model rather than holding stock.
The platform was initially seeded with 500 brands and 10,000 SKUs within the first year by signing 25 boutiques, leveraging their existing inventory to compete with larger retailers immediately.
The company explicitly rejects the term "disruption," positioning itself instead as an "enabler" that aligns with the fashion industry's traditional codes, relationships, and long-term brand value.

Farfetch distinguishes itself from rigid marketplaces by operating as a platform: it allows third parties to utilize its API and logistics data to build independent websites and new business models.
To overcome initial hesitation from Italian and French family-owned boutiques, the company offered to build their e-commerce websites for free as a quid pro quo for marketplace integration; they initially managed 40 such sites.
The company expanded its inventory sources to include 300 brands selling directly on the platform after initially focusing exclusively on boutiques to build scale.
Future investment is categorized into three buckets: optimizing the core marketplace (sustainable innovation), expanding into new categories (recently added watches, fine jewelry, and kids' wear), and "moonshot" projects like the Dream Assembly incubator and partnerships such as the project with Chanel.

The executive leadership team operates on a "todos juntos" framework, maintaining a deliberate 50/50 split between fashion industry veterans (holistic/creative) and technology veterans from companies like Expedia and eBay (data-driven/logical).
Technology investments are increasing as a percentage of adjusted revenue, representing the only P&L line item where the company is not leveraging revenue but is actively deploying capital.
The company prioritizes becoming "the most loved brand in fashion" and views capital allocation toward brand building and technology as the primary growth lever.

Neves advises founders to only pursue ventures where the motivation is an internal "never forgive myself" passion rather than external factors like a large TAM, novelty of the business model, or venture capital interest.
He notes that his own past projects failed when started for reasons other than deep-seated personal belief, emphasizing that only strong passion sustains a team through difficult periods.
Neves states there is no universal formula for success, asserting that the only common denominator among all successful entrepreneurs is this specific intensity of belief in the idea.