Farfetch Launches Flagship Store on JD.com, Embracing the Luxury Fashion Industr
Farfetch Limited (NYSE: FTCH) launched a flagship store on JD.com (NASDAQ: JD) China’s largest retailer on Wednesday, seeing its stock unchanged at $21.08.
Farfetch received a “Level 1” entry point on JD.com in the deal, which means that JD.com's more than 300 million customers will have access to thousands of luxury brands through Farfetch's network.
“Farfetch's Level 1 entry point on JD.com will rewrite the digital ecology of China's luxury goods industry, forming a closed loop in the industry,” José Neves, the chief executive officer of Farfech, said.
JD.com customers will now have access to Farfetch’s network of more than 1,000 luxury brands and boutique partners, giving customers access to a combined total of more than 3,000 upscale brands.
The luxury brands include Balenciaga, Saint Laurent, Alexander Mcqueen, La Perla, Emporio Armani and others.
Ike Boruchow, Wall Street analyst at Wells Fargo, took it as a positive sign. He held a bullish mind towards Farfech giving it a price target of $32.
“The launch was originally slated for the tail end of 2019, but they have now launched the business about six months ahead of schedule,” Boruchow said.
In July 2017, the luxury fashion retailer announced its in-depth cooperation with JD.com, when it invested $397 million in Farfetch. In Feb 2019, JD.com sold its luxury portal Toplife to Farfetch China for $50 million in cash.
“I am delighted to be able to offer JD.coms customers direct access to the broadest selection of luxury fashion online, and to be able to offer luxury brands the premier luxury gateway to China for executing on their digital strategy in China,” said Judy Liu, managing director of Farfetch China.
Shares of JD.com closed down 3 percent on Wednesday at $27.24.