Clicking for Cartier and Gucci Just Got a Lot Easier

Richemont and China’s Alibaba Group Holding Ltd. will each buy $300 million in convertible notes in Farfetch, as well as invest $250 million each in its Chinese subsidiary. Richemont will have a 12.5% stake in the latter and could eventually, through the convertible, have a shareholding in Farfetch.

This is obviously good news for Farfetch, which gets two powerful new investors joining long-time shareholder Tencent Holdings Ltd. But the move has advantages for Cartier-owner Richemont too.

Rupert said there could be further cooperation between YNAP and Farfetch in the future. But putting them together would be the ultimate prize, particularly if this were to result in a spinoff or sale of YNAP by Richemont. Although investing in internet shopping makes sense strategically, the group’s online businesses led by YNAP continue to be loss-making. 

YNAP and Farfetch are both online sellers of bling, but they operate differently. YNAP is like a

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