(Yicai Global) July 10 -- JD.Com, China's second-biggest e-commerce player, is turning its attention to the high-end retail sector with its participation in an investment in Asia's largest online luxury shopping platform Secoo Holding.
Secoo has secured USD175 million through a cooperation agreement with JD and the Asian unit of consumer-focused private equity firm L Catterton, the Beijing-based upscale retail platform said in a statement.
"This partnership will help us enhance our luxury capabilities and provide the best possible luxury shopping experience to consumers in China," JD Fashion & Lifestyle President Shengli Hu said. "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."
SECOO will use the funds to expand further into the luxury market by gaining global fashion and retail resources from L Catterton Asia. The cooperation will elevate the company's shareholder value and consolidate its dominancein the domestic industry.
The platform has provided consumers with more than 300,000 stock-keeping units covering more than 3,000 brands from its website, mobile applications as well as offline experience centers.
L Catterton manages USD 15 billion in equity capital across six funds and 17 offices around the world. L Catterton Asia's investments include Trendy Group, Marubi Biotechnology and men's fashion retailer GXG.
JD has been consistently expanding its presence in the luxury goods field with participation in fashion weeks in New York, Milan and London. The Beijing-based platform established its own independent fashion division Toplife last year.
Editor: William Clegg