Farfetch, Alibaba Group and Richemont form partnership to accelerate digitisation of luxury industry

Farfetch, Alibaba Group and Richemont have 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, according to a press release from the Group.
The partnership will bring luxury retail to the next generation by seamlessly integrating the digital and physical realms, by leveraging each company’s respective expertise and extensive reach.
Farfetch will launch luxury shopping channels on Alibaba’s platforms, Tmall Luxury Pavilion and Luxury Soho, as well as Alibaba's cross-border marketplace Tmall Global. 
As part of the global partnership, Alibaba and Richemont will invest $600 mn in private convertible notes issued by Farfetch Limited. Alibaba and Richemont will also invest $500 million 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 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. 
José Neves, Farfetch Founder, Chairman and CEO said: “This announcement is a major step in our mission to connect the curators, creators and consumers of the luxury fashion industry. The $1.15 bn investment in Farfetch from Alibaba Group, Richemont, and Artemis is a strong validation of our position as the global platform for luxury. The Luxury New Retail initiative will explore ways we can help the wider industry move forward and thrive in the post-COVID world.”
Daniel Zhang, Chairman and CEO of Alibaba Group, said: “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.”
Johann Rupert, Chairman of Richemont, said: “This initiative brings together a powerful combination of highly complementary strengths, notably with our Maisons’ luxury retail expertise and YOOX NET-A-PORTER’s deep brand partnerships, expert curation and exceptional customer care, that will help us deliver a seamless omnichannel experience to our discerning clientele.”

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished