As per a recent report, Chinese multinational technology company Alibaba is looking forward to investing around $300 million, which comes to around Rs. 2,200 crores in a virtual luxury fashion retail company called Farfetch.
After the news came to be known by the industry insiders, shares of the London-based company Farfetch has increased by about 16%.Both the companies are also discussing how they can come up with a Chinese joint venture, says a report.
Earlier, we got to know how Cartier-owner Richemont has collaborated with Alibaba to develop mobile applications. Now it seems that Richemont also has ideas to invest in Farfetch.The Chinese e-commerce company Alibaba and even Farfetch were unavailable to announce anything officially to the media.
Farfetch aims to leverage the Chinese people’s craze for buying online luxury products. You would be surprised to know that people in China constitute about a third of luxury goods purchases all over the world. Such is the demand for luxury products.
Amazing, isn’t it? Earlier in October 2020, Alibaba had announced that it will invest around Rs. 264,24 crores to improve its shares in the hypermarket company Sun Art, thus expanding its reach in the Chinese retail market.
Alibaba is also aiming to use its digital presence to promote Sun Art’s 481 hypermarkets and three mid-size supermarkets in China.For the unaware, Farfetch is a British-Portuguese online luxury fashion retail company that markets products from more than 700 boutiques and brands across the world.
The company Farfetch has been started by a Portuguese entrepreneur José Neves and it has its head office in London. José Neves is a gifted entrepreneur who ensured to use his professional experience of working in fashion startups since the 1990s to set up his venture Farfetch in 2007.
The company’s main branches are spread out in Porto, Guimarães, Braga, Lisbon, New York, Los Angeles, Tokyo, Shanghai, Hong Kong, São Paulo, and Dubai.