, China

Alibaba, Farfectch invest $1.1b in online fashion platform Richemont

Investors are taking a 25% stake in a JV that will run Farfetch's China store.

Alibaba and Swiss luxury goods business Richemont are investing a total of $600m in private convertible notes issued by fashion e-commerce platform Farfetch and another $500m in Farfetch China, according to a press release.

Alibaba Group and Richemont each agreed to buy $300m of the 0% convertible senior notes due 2030 issued by Farfetch. This will be used for Farfetch’s long-term strategy and facilitate the company’s growth plans.

The sale of the Notes to Alibaba Group and Richemont is expected to settle on 17 November. In conjunction, Alibaba Group will nominate one director to the Farfetch Board.

The two investors are also taking a combined 25% stake in a new joint venture that will include Farfetch’s marketplace operations in the China region. In addition, Alibaba and Richemont can purchase a further combined 24% of Farfetch China after the third year of the joint venture’s formation.

The investments by Alibaba and Richemont in Farfetch China and the establishment of the joint venture are expected to be completed during the first half of 2021.

Farfetch will launch luxury shopping channels on Alibaba’s platforms, Tmall Luxury Pavilion and Luxury Soho, as well as in Tmall Global.

Photo courtesy of Thomas Lombard, designed by HASSELL (architects) (Wikimedia Commons)
 

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Retail Asia in your inbox

Check out these tech initiatives by Japan's retailers

Daiei saved 50% in opening costs for its upcoming unmanned store.

Asia's formalwear retailers urged to revisit market strategies

As employees remain working from home, retailers could consider focusing on comfort, analysts have advised.

Alibaba's Tmall rolls out 3D shopping for furniture brands

Customers can explore over 10,000 showrooms through their phones.

Check out FamilyMart's new stores across Asia

The company rolled out its first drive-through store in Malaysia.

Japan-based Daiso opens first Canada store

It offers a range of products from Disney-themed items to phone accessories.

Japan's convenience stores' plans for turning around from lower sales in 2020

Convenience chains are focusing on returning to a growth trajectory.

Alibaba rolls out measures easing merchant operations

Taobao will waive deposit fees for new merchants, with refunds for existing sellers.

Alibaba's Kaola Global to co-create 500 products in 2021

This comes as more users shop for specialty imports, such as juices from Cuba.

Singapore's homegrown retailer Naiise closes doors after disastrous financial year

Founder Dennis Tay is expected to file for personal bankruptcy.

Contact me about the awards