Google invests in JD: e-commerce platforms accelerate internationalization

28/06/2018

During this year‘s  618 shopping holiday, orders through JD.com amounted to $25.6 billion, or around RMB 59.2 billion, marking an increase of 37% compared to las year’s sales. But even bigger news arrived during the event: Google announced it would invest millions in JD.com.

 

JD owner Richard Liu announced that cooperation with Google marked the full start of the e-commerce platform’s internationalization strategy.

On Jun. 18, Google announced that it would invest $550 million in JD.com in exchange for a .93% stake in the company.

JD.com also announced that the two parties will conduct a series of meetings in Southeast Asia, the United States and Europe.

The plan is to merge JD.com’s  capabilities in the supply chain and logistics with Google’s cutting-edge technologies to explore and build next-generation retail infrastructure solutions.

Google’s  official statement is focused on the scale of the rapid growth of online retail in Southeast Asia, as well as the future of JD.com. According to the U.S. tech giant, JD will select a series of products from the Google Shopping platform to develop the American and European market. The partnership will also help Google expand its online retail business and boost advertising revenue.

 

The plan is to merge JD.com’s  capabilities in the supply chain and logistics with Google’s cutting-edge technologies to explore and build next-generation retail infrastructure solutions.

 

During the negotiation, the two companies discussed the sale of smart speaker products  in JD’s online mall. Google hopes to provide some equipment on the JD e-commerce platform to attract consumers’ interest in other company applications. Selling hardware is also a more advantageous way for Google to return to the Chinese market.

Google opened an artificial intelligence center (AI Center) in Beijing last year and provided developers with software, such as TensorFlow and ARCore.                                                                                                                                                                                                                                                                                                                                           Smart speakers are the only product mentioned directly in the report, and there are few other product details available.

Because of Google’s refusal to review content in 2010, the company’s services are still not available in China, and the technology behind the transactions between the two companies is not clear. For example, Google has used the Chinese local service to provide specific features for the Wear OS smart watch.

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