Chinese e-commerce firm JD.com plans to open a luxury platform on its online retail site, competing with larger rival Alibaba Group for business from China’s high-end shoppers.
CEO Richard Liu announced plans for the new platform on Monday without providing details, the Wall Street Journal reports.
Alibaba launched a luxury platform early this month, selling brands such as Spanish fashion brand Loewe and British label Burberry.
In June, JD invested about US$400 million for a stake in UK-based high-end e-commerce platform Farfetch.
On Monday, JD reported a loss of 496 million yuan (US$74.4 million) for the three months ended June. The compared with a loss of 252 million yuan in the same period last year.
Revenue, however, rose 44 percent to 93.2 billion yuan in the second quarter. The company said it expects revenue to expand as much as 40 percent in the current quarter to September.
In May, JD reported its first profitable quarter since going public in 2014, but it warned at the time that investments into new businesses and warehouses would weigh on profits this year, the Journal noted.
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