Farfetch听has secured more than $1 billion investment in a global deal which will see it move into the Chinese market.听
Chinese giant Alibaba and Swiss group Richemont have each invested $300m into the听London fashion tech听platform, while also investing听$250m each in听Farfetch听China听for a听combined 25% stake in听the听new joint venture.听
In addition, Alibaba and Richemont have an听option to听purchase听 a听further combined听24%听of听听Farfetch听China after the third听year of its formation.听
Separately, Artemis has agreed to increase its existing investment in听Farfetch听with a $50m purchase of shares. Farfetch is listed on the New York Stock Exchange.
Farfetch听will launch luxury shopping channels on Alibaba鈥檚 platforms,听Tmall听Luxury Pavilion and Luxury Soho, as well as Alibaba’s听cross鈥恇order marketplace听听Tmall听Global.听听听
The new听channels听expand听the reach听of听贵补谤蹿别迟肠丑鈥檚听global luxury platform to Alibaba鈥檚 757 million consumers.听
Farfetch听and Alibaba have also formed a steering group to further enhance听what it is calling the听Luxury New Retail听initiative, which is听aimed at leading听the听digitisation听of听the听global听luxury听retail听industry.听听听
Richemont听chairman听Johann听Rupert听and Artemis听chairman听Fran莽ois鈥怘enri Pinault will join听Farfetch听and Alibaba on the LNR steering听group as founding members.听听听
鈥淭his听announcement听is a major听step in our听mission听to connect the听curators,听creators听 and听consumers听of the luxury fashion听industry,鈥� said听Jos茅 Neves,听Farfetch听founder, chairman and CEO.听
鈥�The听 $1.15听billion investment in听Farfetch听from Alibaba Group, Richemont, and Artemis is a strong validation of our听position as the global platform for luxury.听听
鈥�The new initiatives with Alibaba Group and Richemont extend听贵补谤蹿别迟肠丑鈥檚听strategy to power the digital听transformation occurring across the luxury industry, which has been accelerated by the unprecedented听challenges resulting from the COVID鈥�19 pandemic.听听
鈥�The Luxury New Retail initiative will explore ways听we can help the wider industry move forward and thrive in the post鈥怌OVID world.鈥澨�听