JD.com invests $397m in Farfetch
Chinese online retailer JD.com is investing $397m in Farfetch and will be partnering with the e-commerce platform in the luxury brand sector. In a statement issued today (22 June), JD.com said: “The strategic partnership between JD.com and Farfetch leverages JD’s unparalleled logistics, Internet finance and technology capabilities and social media resources, including its WeChat partnership, with Farfetch’s leadership in global luxury, to create a frictionless and seamless brand experience. Farfetch has well-established operations in China and is already the partner of choice for 200 luxury brands and more than 500 multi-brand retailers. JD will help drive further brand awareness, traffic and sales for Farfetch in the market.”
The deal will make JD.com one of the largest shareholders of Farfetch and Richard Liu, JD.com’s founder and CEO, will join the Farfetch board.
JD.com added: “Leveraging JD Luxury Express, JD’s recently launched white glove service, Farfetch will be able to offer customers a premium level of service befitting the world-class brands sold on the site. For Chinese consumers, this combination of Farfetch’s luxury know-how, and JD’s blazing same-day delivery speeds and highly professional service, will provide an unparalleled luxury proposition.”
The announcement comes as JD.com is placing a greater focus on high-end luxury and fashion to match what it describes as the “huge demand” among its upwardly mobile customers.
