Chinese e-commerce giant JD.com has made its largest overseas investment ever, in online Farfetch fashion marketplace.
As part of the investment, JD.com has bought a US$397 million stake in Farfetch, making JD.com as one of Farfetch’s largest shareholders. JD.com CEO Richard Liu will take a place on the UK company’s board. Both parties will work together on marketing, logistics and technology areas to help the fashion house expand presence in China.
The new partnership will allow Farfetch to make use of JD.com’s logistics network and marketing systems, alongside online payment and consumer microcredit tools, social media resources such as its partnership with WeChat, and big data.
“We are deeply honored and excited to be announcing this partnership with Richard Liu and JD.com,” Farfetch founder and chief executive Jose Neves said.
“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.”