WHO OWNS WECHAT CRACK

But, by partnering with local giant JD.com, Farfetch puts itself in a position to succeed where others fail.

WHO OWNS WECHAT CRACK

Ecommerce sales now account for about 10% of luxury sales in China, estimates Bain.įoreign brands have historically struggled to crack China's online market. While the majority of these purchases are made overseas, domestic sales are growing rapidly due to reductions in import taxes - and more and more are taking place online. 'Both parties came to the conclusion that it was better to merge into one single consumer-facing brand.'Īs part of the deal, 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 luxury brands, thanks to Farfetch's network of more than 1,000 luxury brand and boutique partners.Ĭhinese consumers account for about one-third of global luxury purchases, according to figures from Bain quoted in the Financial Times. 'We are delighted to build on our relationship with JD.com, and bring to market an unrivaled solution for luxury brands to succeed in the Chinese market,' said Jose Neves, Farfetch Founder, CEO and Co-Chairman, in a February 2019 press release. Now, the two companies see greater value in folding the Toplife venture into Farfetch's business in China, effectively merging these previously separate operations under the Farfetch brand, with JD.com handling the logistics.

However, JD.com continued to run its own luxury ecommerce platform Toplife. JD.com became one of Farfetch's largest stakeholders when the partnership was first formed, investing $397 million into the company.

Now, Farfetch and JD.com have agreed to expand their partnership to provide what they describe as the 'Premier Luxury Gateway to China' for luxury brands. Since then it has since leveraged JD.com's logistics, technology, and marketing capabilities in China, as well as its insights into the behaviors of China's luxury consumers. In 2017, the fashion unicorn formed a strategic partnership with Chinese ecommerce company JD.com. Farfetch, whose business in the Asia-Pacific region accounts for roughly one-third of its total sales, feels this urgency more than most.įarfetch entered the Chinese market three years ago, setting up offices in Hong Kong and Shanghai. With the Chinese market growing at an unprecedented rate in recent decades, global brands have quickly realized the importance of developing a comprehensive China strategy. Farfetch, the London-headquartered online luxury fashion retail platform, is on a mission to become the leading luxury ecommerce company in China.

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