The president of the Alibaba Group has stepped down from his position on the board of directors at Farfetch Limited. This resignation took effect immediately as of November 30th, marking a significant change in the relationship between two major players in the e-commerce and luxury sectors.
J. Michael Evans has been a prominent figure at Alibaba since August 2015, serving as president and a member of its board of directors. His leadership has been instrumental in steering Alibaba's international digital commerce strategies.
However, on December 7th, 2023, it was confirmed that Evans had resigned from the board of Farfetch, a luxury fashion retail platform, to further the "arm's length commercial relationship" between Alibaba Group and Farfetch.
Subscribe to RetailBoss for free
Sign up here to get the latest news updates straight into your inbox
This development comes after Alibaba and Richemont, a Swiss luxury goods holding company, formed a global partnership with Farfetch to accelerate the digitization of the luxury industry. Both Alibaba and Richemont have invested $300 million each in Farfetch, and an additional $250 million each for a 25% stake in a joint venture that includes Farfetch's marketplace operations in China. This strategic alliance is set to expand Farfetch's reach to Alibaba's vast consumer base, which numbers over 757 million.
The resignation of Evans from the Farfetch board may raise questions about the future dynamics of this partnership. However, it appears that business will continue as usual at the e-tail site, with no immediate disruptions anticipated. The move is seen as a step towards maintaining a proper commercial distance between the two entities, possibly to avoid conflicts of interest and to align with corporate governance best practices.
Alibaba's involvement with Farfetch is part of a broader narrative of the company's recent activities, including the controversial dismissal of an employee who brought forward sexual assault allegations, which the company claimed spread falsehoods damaging its reputation. Despite such controversies, Alibaba remains a dominant force in the e-commerce world, with Ant Group as an affiliate owning approximately 33% of the FinTech giant.
