JD.com is in the process of launching a separate but wholly-owned subsidiary, Toplife. Photo credit - Pixabay
JD.com's push towards selling more luxury items is good news for British retailer Farfetch
In June, we reported that China's online mega-store, JD.com, had invested $400m in Farfetch (a luxury online store, based in London.)
The full benefits of that deal to both parties are now becoming clearer.
JD.com is in the process of launching a separate but wholly-owned subsidiary, Toplife, with the aim of bringing luxury goods to more Chinese consumers.
It's a potentially enormous market, but JD.com faces challenges insofar as Chinese buyers of these products have often chosen to buy them abroad, or direct from brands, in the past.
That's because luxury goods are sometimes cheaper abroad, and some consumers have concerns about counterfeits.
For that reason, Toplife will have some glamorous touches to help reassure shoppers of the quality of what they are buying.
When it comes to Farfetch, there are clear benefits for both partners.
JD.com's investment in Farfetch gives it a partner who already specialise in this marketplace, and in which they have been very successful.
Meanwhile, it is understood that the deal will give the British firm access to JD.com's infrastructure in China, whilst maintaining a separate brand identity.
There are clear benefits for both partners.