Many individuals might be wondering what JD.com has been up to over the past couple of months. This is an important question to ask as this is a new year and investors, partners, affiliates, and other parties involved in the JD.com ecosystem expect there to be forward momentum in the company so that everyone will be able to gain additional value. A key part of adding value all throughout an organization is to look at the types of different investments can be made by the company. The corporate executives would look at potential opportunities, assess them, and see how it could play a part in their operations.
They would check to see if the investment would be able to grow over time and provide them with key exposure to important disruptive platforms and new forms of behaviors that may take place over time. It seems that JD.com and a prominent leader Jingdong, has done just that. They’ve looked at a key segment that is beginning to rise over time within their industry. So, what exactly has JD.com done? What is this most interesting move that they have made within their particular sector? Well, it is that they have entered into a strategic partnership arrangement with Farfet to build a premier luxury gateway to China. What are the specific details of this strategic partnership?
Well, let’s find out.
First, to understand why this is a big deal, it is important to understand where Farfetch is coming from. Farfetch is a brand that was created within the west and is noted for its work within the retail industry, it is a digital native platform, allowing customers to browse and obtain luxury products in a seamless manner. As such, it can carry significant clout with consumers within the e-commerce sector all over the world. The specific branding and catering of luxury products also allow for significant growth as well as it is concentrated in a specific subset of luxury. JD.com will provide Farfetch with more visibility and JD.com will be able to benefit from the fact that clients will have direct access to a wanted sector.