JD, L Catterton Asia invest $175m in online luxury retailer Secoo
Online Chinese retail giant JD.com has partnered with private equity firm L Catterton Asia for a $175 million cash injection into local luxury fashion e-commerce portal Secoo.
In inking the deal, Secoo, Asia's largest high-end multi-brand fashion retailer, endeavours to further expand within the rapidly growing luxury market in China, by gaining global fashion and retail knowledge from L Catterton Asia and e-commerce expertise from JD.
"By establishing relationships with leading partners in the consumer, luxury goods and e-commerce spaces, Secoo is poised to gain invaluable name recognition and further boost the company's reputation in the international luxury consumer space," said Richard Li, chairman and chief executive officer of Secoo.
Li also hinted at the potential for more international market entries.
"Through this partnership, Secoo will be able to leverage L Catterton and JD's operational expertise and vast resources to expand and deepen our market presence not only in China, but across the globe."
Secoo currently sells some 300,000 products, which cover more than 3,000 global and domestic brands, via its website, shopping app and offline centres.
"E-commerce continues to play an increasingly important role for consumers across all demographics, and as evidenced by our investment, we believe that Secoo is one of the strongest high-end platforms for the Chinese consumers," said Ravi Thakran, chairman and managing partner of L Catterton Asia.
"We look forward to working together with Richard and his outstanding team to take Secoo to the next level and continuously build out the platform for high-end consumers."
The Asian arm of L Catterton -- the LVMH and Groupe Arnault-backed investment firm -- L Catterton Asia's portfolio of companies include Trendy International, Pepe Jeans, Gentle Monster. The firm has been adamant on diversifying its investment with recent investments in Australian high-end swimwear label Seafolly, sportswear brand 2XU, and this year, Balinese jeweller, John Hardy.
With major Chinese e-commerce firms eager to crack the lucrative local luxury market -- as seen in the recent of launch on in-house high-end platform offerings (JD's Toplife and Alibaba's Luxury Pavilion), the Secoo investment will allow JD to further sink its fingers into China's luxury fashion pie.
"This partnership will help us enhance our luxury capabilities and provide the best possible luxury shopping experience to consumers in China," said Shengli Hu, president of JD Fashion & Lifestyle.
"Chinese consumers are increasingly discerning about their luxury purchases, demanding more variety and choice than ever. As we look to continue to meet this demand, we see many potential areas for future collaboration with Secoo."
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