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Hot off the announcement of their groundbreaking global partnership with Conde Nast, luxury ecommerce destination Farfetch has revealed a $397 million investment from Chinese etailer JD.com — the second biggest ecommerce site in China.
According to a release, the strategic partnership “will create the premier platform for luxury e-commerce across China, opening a gateway to an $80 billion market,” as the two companies “will partner on marketing, logistics and technology solutions to build the brand in China, while Farfetch will continue to be the customer-facing brand.”
The deal makes JD.com one of the largest shareholders of the London-based company. JD.com founder Richard Liu will also join Farfetch’s board.
A few of the benefits from the partnership include a complementary approach to JD’s recently launched JD Luxury Express, a “white glove,” same-day delivery service, which will benefit from Farfetch’s thorough understanding of the luxury sphere. Additionally, Farfetch will gain access to JD.com’s digital marketing technology platform, BlackDragon, which contains a massive collection of consumer data to help the company market itself more effectively in China, as well as the various JD Finance programs, including JD Pay and Baitiao (a popular consumer microcredit channel).
“As part of our major luxury push, we could not have found a stronger online partner than Farfetch,” said Liu in a release. “We have always believed that the long-term trend of Chinese e-commerce is toward quality over price, and this partnership with Farfetch further extends our lead in the battle for the future of China’s upwardly mobile consumers.”
Natalie Massenet, who joined the company in February and was instrumental in facilitating the Conde Nast partnership, celebrated the partnership on Instagram, writing that the deal is “another example of the inspiring collaborative ethos that drives Farfetch.”
Considering most luxury brands and conglomerates agree that the areas with the most growth potential are the digital sphere and Asian markets, this move just puts Farfetch one step further ahead of the curve.
this is a big one! Farfetch has just agreed a brilliant strategic partnership with China’s largest retailer JD.com. In addition to becoming one of our largest shareholders JD will partner on marketing, logistics and technology solutions to allow us to better serve the Chinese consumer and build our brand, while expanding the reach and success of the 700 brands and boutiques that are part of the Farfetch community. It’s an other example of the inspiring collaborative ethos that drives Farfetch. #partnersinstyle #FarfetchForFashion #DeliveringluxurytoChina
A post shared by Natalie Massenet, DBE (@nat_mass) on
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