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The Swiss luxury house Richemont has signed a partnership agreement with Farfetch and the Chinese group Alibaba.
After the Eurazeo group sold its entire stake in Farfetch, Richemont announced Thursday evening that it will invest $300 million in Farfetch, the company founded in 2008 by Portuguese entrepreneur José Neves.
The Alibaba Group, which will also invest $300 million in the Farfetch virtual marketplace, said it will launch Farfetch shopping chains on its Tmall Luxury Pavilion and Luxury Soho e-commerce sites, while also investing in the new Farfetch China with Richemont.
Alibaba and Richemont also announced an investment of $250 million each in a new Chinese joint venture with Farfetch. They will share 25% of this new company, including the operation of Farfetch marketplaces in China.
In addition, the groups are considering the possibility of partnering with U.S. e-commerce companies to offer services for luxury brands. Artemis, the main shareholder of Kering, owner of Gucci, plans to increase its stake in Farfetch. Completion of Alibaba and Richemont’s investments and the creation of the Chinese joint venture are scheduled for early 2021.
Read also > RICHEMONT’S FORECASTS : HALF-YEAR OPERATING PROFIT EXPECTED AT 69 MILLION
Featured photo: © Farfetch[/vc_column_text][/vc_column][/vc_row]
