JD eyes luxury sector expansion

JD.com Inc, China's second-largest e-commerce player, said it will invest $397 million in London-based online fashion retailer Farfetch UK Ltd to further penetrate the luxury sector, amid fierce competition with Alibaba Group Holding Ltd.

JD will become one of the largest shareholders of the UK firm following the transaction, and its founder and CEO Liu Qiangdong will join Farfetch's board, JD said in a statement.

Farfetch will leverage JD's existing logistics, internet finance, technology capabilities and social media resources, including its WeChat partnership, to expand its sales channels in China, as well as allow Chinese consumers to access luxury brands online.