The partnership will combine JD's logistics, marketing, and technology capabilities with Farfetch's experience in providing luxury products to a global market. While Farfetch is already established in China, JD will help the company to expand its reach and drive further brand awareness, traffic, and sales.
The investment is part of JD's decision to focus on high-end luxury and fashion to match the huge demand coming from its upwardly mobile customers. JD has hosted fashion shows in New York, Milan, London, Beijing and Shanghai over the past two years.
"As part of our major luxury push, we could not have found a stronger online partner than Farfetch," said Richard Liu, Chairman and CEO of JD.com in a statement. "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."
"We are deeply honoured and excited to be announcing this partnership with Richard Liu and JD.com," said José Neves, Founder, Co-Chairman and CEO of Farfetch." 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 e-commerce 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 omni-channel way of life they have already fully embraced."
Read more: PR Newswire (Press release)