Chinese e-commerce firm JD.com has announced plans to invest $397m in UK online fashion retailer Farfetch, as part of a strategic partnership.
The company seeks to combine its logistics, internet finance and technology capabilities, as well as social media resources, with Farfetch's experience in global luxury.
As part of the partnership, JD.com will help Farfetch to improve its brand awareness, traffic and sales in the Chinese market.
JD.com chairman and CEO Richard Liu said: "As part of our major luxury push, we could not have found a stronger online partner than Farfetch.
"We have always believed that the long-term trend of Chinese e-commerce is towards quality over price and this partnership with Farfetch further extends our lead in the battle for the future of China's upwardly mobile consumers.”
The companies will collaborate on marketing, logistics and technology solutions to build the Farfetch brand in China.
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Farfetch will now be able to leverage JD.com's same-day delivery services.
Commenting on the partnership, Farfetch founder, co-chairman and CEO José Neves said: “This partnership addresses the market's challenges by combining the Farfetch brand and curation with the scale and influence of the foremost Chinese e-commerce giant.
“This strategic partnership will provide brands a seamless, immediate access to the luxury consumer and Chinese luxury shoppers with access to the greatest selection of luxury in the omnichannel way of life they have already fully embraced."
Farfetch will also leverage the BlackDragon digital marketing technology platform to activate JD.com's collection of big data.
Consumers of Farfetch will have access to JD Finance’s payments partner JD Pay and consumer microcredit channel Baitiao.
Farfetch has a network of 200 luxury brands and more than 500 multi-brand retailers in China.
Image: Farfetch founder CEO and co-chairman José Neves . Photo: courtesy of Farfetch Group and JD.