Private equity firm L Catterton and Chinese e-commerce giant JD.com announced a strategic partnership with Chinese online platform Secoo Holding Limited yesterday and will invest 175 million US dollar each in one of Asia's largest online integrated upscale products and services platforms.
“We are excited about this strategic partnership with L Catterton Asia and JD,” commented Richard Li, chairman and CEO of Secoo, in a press release. “L Catterton is the leading consumer-focused investment firm in the world, and JD is China’s largest retailer and the leading e-commerce giant in China. 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. 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, celebrating the tenth year of being in business in 2018, is the world’s leading online luxury fashion retailer and provides customers with a selection of more than 300,000 authentic upscale products of more than 3,000 global and domestic brands as well as lifestyle services on its integrated online and offline shopping platform, which consists of Secoo.com, mobile applications and offline experience centers.
“We are thrilled to enter into a partnership with Secoo, the luxury e-commerce leader in China. 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 consumer. 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,” said Ravi Thakran, chairman and managing partner of L Catterton Asia.
The partnership will enable Secoo to leverage L Catterton’s global fashion and retail expertise to further expand within the luxury market by collaborating with existing L Catterton portfolio companies. The transaction will also enable Secoo to continue enhancing shareholder value and strengthen its leading position in the rapidly growing Chinese luxury e-commerce market.
“This partnership will help us enhance our luxury capabilities and provide the best possible luxury shopping experience to consumers in China,” explained 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.”
As part of its “Retail as a Service” offer, JD.com opens its technology and infrastructure to partners, brands and other sectors, helping them to drive productivity and innovation across a range of industries.
L Catterton was formed through the partnership of Catterton, LVMH and Groupe Arnault, focusing on investments in leading consumer brands. L Catterton Asia was formed in 2009 and since invested in Trendy International, Pepe Jeans, Gentle Monster, YG Entertainment, Impresario Entertainment & Hospitality, Sasseur and others.
The transaction is expected to close “in the near future”, subject to customary closing conditions. L Catterton and JD together will have the right to appoint a director and an observer to Secoo’s board of directors until the third anniversary of the closing of the transaction and for so long as they hold 5 percent of Secoo’s total issued shares thereafter on a fully diluted and as-converted basis.Photo: Secoo website