Farfetch is a global technology leader that offers a platform for the luxury fashion industry. The firm is publicly traded and uses the initials (FTCH) in the New York Stock Exchange (NYSE). Jingdong, popularly known as JD.com is the largest online retailer in China in terms of sales turnover and revenue. Jingdong is also a globally renowned player in the e-commerce space for its contributions to the designing and developing futuristic technological solutions. Similar to Farfetch, Jingdong is publicly traded but on NASDAQ Stock Exchange (NASDAQ) using the initials (JD). The two global leaders in their respective fields recently announced that they would be enhancing and expanding their strategic partnership, the objective being to provide the first-ever luxury gateway to China for luxury brands.
Under the new agreement, Jingdong’s Toplife will merge into Farfetch China and its existing China business. Jingdong enjoys an active client base consisting of an excess of 300 million shoppers on the JD.com app. The enhanced and expanded strategic partnership will see Farfetch gain a “Level 1” access to Jingdong’s 300 million plus shoppers on its online app. As a result, Jingdong’s clients will be in apposition to access over 3000 brands through Farfetch’s network; this includes access to more than 1000 premium luxury brands and boutique partners. The new strategic partnership will be building on Jingdong and Farfetch’s partnership that was established back in July 2017.
Currently, Jingdong is one of Farfetch’s largest shareholders. The partnership between Jingdong and Farfetch is designed in a way that it is mutually beneficial and sustainable. Since the commencement of the alliance, Farfetch has been utilizing and leveraging Jingdong’s logistics capabilities in mainland China and China as a whole. On the other hand, Jingdong has been benefiting from insights on the behavior of China’s luxury consumers. Farfetch is set to strengthen its China business through the acquisition of CuriosityChina, which is one of the pioneers and leading integrated marketing and social commerce firm. The recent enhancement of Jingdong and Farfetch partnership will see Jingdong have access to Farfetch’s logistics platform and technology.