JD.com and Farfetch announced this week a strategic partnership that they say will create “the premier platform for luxury ecommerce across China,” tapping into a market thought to be worth $80bn.
The partnership, which sees leading Chinese retailer JD invest $397m in London-based Farfetch, brings together JD’s China-based logistics, technology and social media marketing resources, including a partnership with WeChat, with Farfetch’s expertise in luxury retailing. Together they promise to create a “frictionless and seamless brand experience”.
Farfetch already has operations in China, where it works with 200 luxury brands and more than 500 multi-brand retailers. JD’s investment will make it one of Farfetch’s largest shareholders, with JD.com founder and chief executive Richard Liu joining the board.
The Farfetch community currently includes 700 brands and boutiques which, says Farfetch founder, co-chairman and chief executive José Neves, will now be better placed to sell into China’s luxury market.
“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,” said Neves. “This partnership addresses the market’s challenges by combining the Farfetch brand and curation with the…