JD.com partners with e-commerce platfom Farfetch to tap into the luxury retail market in China
JD.com has announced that it’s merging Toplife – it’s luxury e-commerce platform – with Farfetch China, as part of a new partnership between the companies.
Going forward JD.com’s customers will gain instant access to Farfetch’s marketplace, which has more than 1,000 luxury brand and boutique partners.
The Chinese retailer will also be able to use Farfetch’s technology and logistics platform to connect foreign brands with Chinese customers.
Under the agreement, the companies aim to create the ‘premier luxury gateway to China’ for luxury brands.
JD.com and Farfetch have a long-standing history: in 2017, JD.com invested $397mn in Farfetch and, in recent years, Farfetch has expanded its presence in China by using JD.com’s logistics network and consumer data.
Today, JD.com stands as one of the largest shareholders in the online luxury retail platform.
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.
"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 and sophisticated audience in this important market.”
From 2008 to 2014, the number of Chinese households purchasing luxury products doubled, according to McKinsey. As such, many e-commerce companies are keen to tap into China as it is predicted to be one of the world’s fastest-growing luxury markets.
Jon Liao, Chief Strategy Officer of JD.com, said that the agreement was “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," he said.
“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.”