Farfetch, Alibaba Group and Richemont announced a global strategic partnership to provide luxury brands with enhanced access to the China market as well as accelerate the digitisation of the global luxury industry. Leveraging each company’s respective expertise and extensive reach, the partnership will bring luxury retail to the next generation by seamlessly integrating the digital and physical realms.

As part of the global partnership, Alibaba and Richemont will invest $300 million each ($600 million in total) in private convertible notes issued by Farfetch Limited. Alibaba and Richemont will also invest $250 million each ($500 million in total) in Farfetch China, taking a combined 25% stake in a new joint venture that will include Farfetch’s marketplace operations in the China region.

Luxury New Retail (LNR) is a visionary initiative which will leverage Farfetch’s and Alibaba’s state-of-the-art omnichannel retail technologies to serve the needs of luxury businesses, including a full suite of enterprise solutions powered by Farfetch.

Daniel Zhang, Chairman and CEO of Alibaba Group, noted, “This highly complementary partnership brings together some of the world’s leading luxury retail and technology platforms, representing another milestone in Alibaba’s strategy to meet the rapidly growing demand for luxury products in China. The Chinese luxury market – which is expected to account for half of global luxury sales by 2025 – consists of hundreds of millions of young, digitally-native consumers. By partnering with Farfetch and expanding our existing relationship with Richemont, we will accelerate the digitisation of the global luxury retail industry and transform the luxury shopping experience for consumers.”

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