The Chinese e-commerce giant, which in 2017 invested 397 million dollars in the online luxury platform, will provide its 300 million users with access to Farfetch.
The partnership between JD.com and Farfetch continues. The second largest e-commerce operator in the Asian country will integrate in Farfetch its platform of luxury goods Toplife, which was launched in 2017.
These move comes two years after JD.com invested 397 million dollars in the e-commerce platform, also specialized in luxury fashion distribution. This alliance was developed with the aim of boosting the company’s business in China, where it maintains an intense competition with Alibaba.
Now, as part of the merging of Toplife in Farfetch, the e-commerce will receive more than 300 million users from JD.com. “We believe our Level 1 access with JD.com will be transformational for the luxury industry’s digital landscape in China,” said José Neves, founder and CEO of Farfetch in a statement. “We now offer luxury brands a one-stop solution to develop their digital strategies,” added the manager.
Farfetch signed some days ago a partnership with Harrods to boost the group’s e-commerce business
The agreement entailed that Xia Ding, until now head of Toplife, would leave her post, although she will remain as President of JD International Fashion and vice president of the Chinese group.
JD.com closed the first nine months of its fiscal year 2018 with a net profit of 2.49 billion yuan (307 million euros), which represents a growth of 127% compared to the same period of the previous year. Between January and September, JD.com recorded incomes of 327.18 billion yuan (41.22 billion euros), with an increase of 29.7% in comparison with that period of 2017.
Farfetch, which some days ago signed a partnership with the department store group Harrods, closed 2017 with a revenue of 386 million dollars, 59% more than the previous year. The Pinault family, owner of Kering, is among the investors that bet on the e-commerce company in its leap into the stock market.