Farfetch Limited (NYSE: FTCH), the leading global technology platform for the luxury fashion industry and JD.com (NASDAQ: JD), China’s largest retailer, today announced the expansion of their strategic partnership in order to provide the ‘Premier Luxury Gateway to China’ for luxury brands.
Under the agreement, Toplife will merge into Farfetch China. In addition, Farfetch will gain a ‘Level 1’ entry point on the JD.com app, providing JD.com’s 300 million customers with instant access to more than 3,000 brands via Farfetch’s network of more than 1,000 luxury brand and boutique partners.
The partnership builds on the existing successful relationship between Farfetch and JD.com, started in July 2017. Since then, Farfetch has leveraged JD.com’s logistics capabilities in China, as well as JD.com’s insights into the behaviors of China’s luxury consumers. JD is one of Farfetch’s largest shareholders.
Farfetch has strengthened its China business through its agreement to acquire CuriosityChina, a leading integrated marketing and social commerce company. Through this expanded agreement with JD.com, Farfetch will offer the full suite of Farfetch’s technology and logistics platform to brands wanting to reach luxury consumers in China, which accounts for significant growth in the luxury industry.
Luxury is an integral component of JD Fashion. As a key player in China’s luxury market, JD has been working directly with luxury brands to offer an end-to-end luxury shopping experience, from customer service to logistics, with luxury warehousing and ‘white glove’ delivery via JD Luxury Express. It has also pioneered omnichannel luxury partnerships. Several top brands have made their official e-commerce luxury debut with JD. Going forward, JD will continue to expand its direct partnerships with luxury brands.
José Neves, Founder, CEO and Co-Chairman, Farfetch said: “We are delighted to build on our relationship with JD.com, and bring to market an unrivalled solution for luxury brands to succeed in the Chinese market. We believe our Level 1 access with JD.com “closes the circle” and will be transformational for the luxury industry’s digital landscape in China. With this agreement, and our previous strategic investments in China including our acquisition of CuriosityChina, we now offer luxury brands a one-stop solution to develop their digital strategies in accessing the engaged andsophisticated audience in this important market. Today we mark the launch of what I believe is the Premier Luxury Gateway to China.”
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Jon Liao, Chief Strategy Officer of JD.com, said “This win-win collaboration is a key development in our ongoing relationship with Farfetch. We are combining the best of global and local market expertise in the luxury segment. This is an important step for JD.com in developing its global fashion and luxury ecosystem. In just over a year of operation, Toplife has worked with many of the world’s top brands, and has grown to become the platform of choice among China’s discerning luxury consumers and brands. Luxury is an integral part of our fashion offering, and we are excited to work together with Farfetch to create the ultimate destination for luxury shopping in China.”
(Source: Business Wire)