Farfetch, the luxury fashion e-tailer announced partnership on Thursday with JD.com. China’s second-largest e-commerce company after Alibaba will be providing $397 million investment. The new deal will make JD.com one of Farfetch’s largest shareholder. Richard Liu, founder and CEO will take a seat on Farfetch board as part of the agreement.
Founder and CEO Jose Neves, said in a statement:
“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”.
Since Farfetch launched in 2014, the company has raised over $500 million and current valuation of the business is over $1 billion. Farfetch and JD.com will also join forces on focusing on technology and marketing solutions, while getting full access to the expanded logistics network.