Farfetch partners with JD.com
Luxury fashion retailer Farfetch is partnering with Chinese online giant JD.com as it looks to boost sales in China.
As part of the move, JD.com will become one of the largest shareholders of Farfetch by investing $397 million. In addition, JD founder and chief executive Richard Liu will join the Farfetch board.
JD and Farfetch will partner on marketing, logistics and technology solutions to build the brand in the country, while Farfetch continues to be the customer-facing brand.
Farfetch already has well-established operations in China, having teamed up with 200 luxury brands and more than 500 multi-brand retailers. The company said the partnership will help it to drive brand awareness, traffic and sales in the market.
José Neves, founder, co-chairman and chief executive of Farfetch (pictured), 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.”
The announcement comes as JD is placing a greater focus on high-end luxury and fashion to meet demand from its upwardly mobile customers.
Over the last two years, JD has hosted fashion shows in New York, Milan, London, Beijing and Shanghai and JD Fashion has made a major push in the luxury and fashion areas by launching several key international brands on the site, including Armani, Swarovski and Zenith.
Liu said: "As part of our major luxury push, we could not have found a stronger online partner than Farfetch. We have always believed that the long-term trend of Chinese ecommerce 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. We look forward to deepening our relationships with Farfetch and luxury brands in the months and years ahead."
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