Chinese e-commerce giant JD.com is investing $397m in a partnership with UK luxury retailer Farfetch to meet increasing demand from wealthier consumers for authentic goods in a country where fakes proliferate.
Farfetch, a London-based fashion retailer valued at more $1bn, will maintain an independent e-commerce platform in China rather than sell its designer goods via the JD.com marketplace.
The company will gain access to JD’s marketing platform, social media channels and delivery service. In return, Richard Liu, JD’s founder and chief executive, will receive a seat on Farfetch’s board and an equity stake that makes JD one of its largest shareholders.
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