Chinese luxury retailer Secoo drives expansion via US$175m deal with JD.com, L Catterton
JD.com’s investment in Secoo marks the latest move to build up its presence in the luxury fashion retail sector, in which Chinese consumers are forecast to make up 40 per cent of the global market by 2024
Chinese online luxury fashion retailer Secoo Holding is looking to ramp up its international business expansion after landing a US$175 million investment from e-commerce giant JD.com and private equity firm L Catterton Asia.
Secoo, which is listed on the Nasdaq stock market, announced that deal on Monday as part of its strategic partnership with JD.com and the Asian branch of US-based L Catterton, the world’s largest consumer-focused investment management company.
“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,” said Richard Li Rixue, the chairman and chief executive of Secoo, in a statement.
With JD.com, Secoo has a strong domestic online retail partner with 301.8 million annual active users as of March 31. JD.com also operates 515 warehouses across mainland China.
L Catterton Asia, previously known as L Capital Asia, will provide industry expertise based on its more than 200 investments in leading consumer brands. L Catterton was formed through the partnership of venture capital firm Catterton Partners, luxury goods conglomerate LVMH’s private equity arm and Groupe Arnault, the holding company of French businessman and LVMH owner Bernard Arnault.