- Farfetch and JD.com will create luxury ecommerce platform
- JD.com to invest $397m and become one of Farfetch’s biggest shareholders
Fashion etailer Farfetch has struck a deal with Chinese giant JD.com to create the “premier platform for luxury ecommerce across China”.
As part of the deal JD.com will become one of Farfetch’s biggest shareholders and invest $397m (£314m).
JD.Com, which describes itself as China’s biggest retailer and is listed on New York’s Nasdaq exchange, said the tie-up would enable “opening a gateway to an $80bn [£63m] market”.
The deal will combine JD.com’s “unparalleled logistics, internet finance and technology capabilities and social media resources” with Farfetch’s “leadership in global luxury” to create a “frictionless and seamless brand experience”.
Farfetch already operates in China but the link-up will “help drive further brand awareness, traffic and sales”.
JD.com chief executive Richard Liu. Who will join Farfetch’s board, said: “As part of our major luxury push, we could not have found a stronger online partner than Farfetch.
Chinese e-commerce trend
“We have always believed that the long-term trend of Chinese e-commerce is towards quality over price and this partnership with Farfetch further extends our lead in the battle for the future of China’s upwardly mobile consumers.”
Farfetch founder and chief executive José Neves said: “China is the world’s second largest luxury market, and we are delighted to have such a respected partner, known for its strict protection of IP, with whom to address Chinese luxury consumers.
“This partnership addresses the market’s challenges by combining the Farfetch brand and curation with the scale and influence of the foremost Chinese ecommerce giant.
“This strategic partnership will provide brands a seamless, immediate access to the luxury consumer and Chinese luxury shoppers with access to the greatest selection of luxury in the omnichannel way of life they have already fully embraced.”