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What has Walmart and Farfetch in common?

Asda China China Fashion Market Farfetch JD.com Luxury Value Fashion Walmart

The answer is: An interest in the Chinese online market.

In June 2016 Walmart acquired a 5.9% stake in JD.com, the Chinese ecommerce marketplace listed on Nasdaq since 2014. In January 2017 Walmart had upped its stake in JD.com to 12.1%.

In October 2016 Asda (owned by Walmart) and JD.com announced a collaboration to bring 'British authentic merchandise' to the Chinese market.

In June 2017 JD.com acquired a minority stake in Farfetch with the two companies announcing a collaboration in the Chinese market, bringing authentic luxury goods to Chinese customers.

 

Questions:

What do luxury brands really think of Farfetch's business model?

How is the Walmart relation perceived among luxury brands?

Will Farfetch's 'supplier stores' have to pay a higher commission to sell to China using the JD.com network?

 

Gossip from within any of the companies mentioned much appreciated. Feel free to comment. Note that we moderate responses.



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