JD.com buys into Farfetch fashion site
JD.com has bought a US$397 million stake in Farfetch, solidifying a partnership that will see its CEO Richard Liu take a place on the UK company’s board. It will also make JD.com one of Farfetch’s largest shareholders.
This comes amid a push by the luxury-oriented Farfetch to expand in Asia, having raised $110 million in 2014 to support China growth. The new partnership will allow Farfetch to make use of JD.com’s logistics network and marketing systems, alongside online payment technology and social-media resources like its partnership with WeChat.
An added bonus for the UK fashion marketplace is an increased ability to tackle counterfeit luxury products produced in the region.
JD.com will also benefit from the partnership, pushing into the luxury market and setting itself apart from rival Alibaba.
“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,” says Farfetch founder/CEO Jose Neves.
Just this month, JD.com launched its high-end delivery service JD Luxury Express, with staff in suits and white gloves delivering packages via electric vehicles directly to customers’ homes.
Farfetch, which counts France’s Eurazeo, Singapore sovereign wealth fund Temasek and China’s IDG Capital among its investors, was valued at around $1.5 billion in a fundraising last year.
This story first appeared on sister site Inside Retail Asia.
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.
Inside Retail Polls
Department store Myer has further streamlined its executive team, cutting 35 roles from its head office in Melbourn… https://t.co/jEPQL27ujx4 days ago
Clothing retailer Jeanswest is the latest retailer to enter voluntary administration, citing difficult trading co… https://t.co/xyBNwDPO0J6 days ago