With the increase in the number of rich people in China, the luxury sector is increasingly important and JD.com’s Toplife has merged with Farfetch’s existing business in China
Luxury is increasingly important in China and now JD.com’s 300 million customers have access to over 3,000 luxury brands through Farfetch network, an online fashion retail platform that sells products from over 700 boutiques and brands all over the world. JD.com, the largest Chinese retailer, has announced its strategic partnership with Farfetch to provide the “Premier Luxury Gateway to China” to Chinese customers who wish to make luxury purchases.
The agreement provides that Toplife will merge into Farfetch China and that Farfetch will acquire a “Level 1” entry point in JD.com app, providing JD.com’s 300 million customers with immediate access to more than 3,000 brands through the Farfetch network of over 1,000 luxury brands and boutique partners. But the two giants of luxury already know each other since July 2017, when a successful relationship began. Since then, Farfetch has leveraged the logistics capabilities of JD.com in China, as well as JD.com’s insights into the behavior of Chinese luxury consumers.
JD is one of Farfetch’s largest shareholders
Farfetch strengthened its business in China through its agreement to acquire CuriosityChina, a leading integrated company in marketing and social commerce. Through this extensive agreement with JD.com, Farfetch will offer Farfetch’s full suite of technology and logistics platform to brands that want to reach luxury consumers in China, representing significant growth in the luxury sector.
For JD.com this agreement represents a new step for the hegemony of the Chinese luxury market. In recent years, JD has worked directly with luxury brands to offer an end-to-end luxury shopping experience, from customer service to logistics, with luxury warehouses and “white glove” delivery through JD Luxury Express. Thanks to JD.com, several major brands have made their official debut in the e-commerce sector.
In the future, JD will continue to expand its direct partnerships with luxury brands.
The importance of JD.com’s strategy is confirmed by Jon Liao, JD.com’s Chief Strategy Officer, who 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 ”
On the other hand, José Neves, Founder, CEO and Co-President of 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 and sophisticated 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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