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Google to Invest $550 Million in China's JD.com

Google to Invest $550 Million in China's JD.com


CHINA
Tuesday, June 19th, 2018

It seems like everyone wants their hand in the grocery business these days. As competition increases, everyone wants to jump in on the action, including those in the tech industry. Google is investing $550 million in Chinese online retailer JD.com. This move will strengthen the retailer’s stance against Amazon’s dominant positioning in retail.

JD.com

“This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world,” JD.com’s Chief Strategy Officer Jianwen Liao said. “This marks an important step in the process of modernizing global retail. As we celebrate our June 18 anniversary sale, this partnership opens a new chapter in our history.”

In this partnership, the companies will develop retail solutions throughout the world, like Southeast Asia, the U.S., and Europe, according to a press release. The two aim to fuse JD’s supply chain and logistics experience and Google’s technology expertise to create the next generation of retail infrastructure solutions. In doing this, the companies hope to offer helpful and personalized shopping for customers.

The reason for this move is to expand both companies’ retailing presence, according to the Wall Street Journal, and with this partnership, JD will sell products through Google Shopping. With this alignment, JD’s reach will include the U.S. and Europe, as it branches out from its standing in the competitive retail landscape in China.

Philipp Schindler, Chief Business Officer, Google "We are excited to partner with JD.com and explore new solutions for retail ecosystems around the world to enable helpful, personalized, and frictionless shopping experiences that give consumers the power to shop wherever and however they want,” Google Chief Business Officer Philipp Schindler said.

Using Google Shopping allows retailers to show their ads for products above Google’s search results’ blue links. And this isn’t the only move for the tech company, which has also made steps into voice-enabled smart speakers and convenient home grocery delivery, according to the news outlet.

Google headquarters

Google joins Walmart and Tencent Holdings as JD’s shareholders, but the Beijing-based online powerhouse has been battling it out for business against Alibaba Group Holding. Google is set to receive 27,106,948 newly issued JD.com Class A ordinary shares. The shares are issued at $20.29 per share, which equals out to about $40.58 per ADS, based on the volume-weighted average trading price over the prior trading days, the press release explains.

How will Google's new stance with JD boost its presence in the grocery industry, and will that ripple into more ventures? Deli Market News will keep you updated.

GoogleJD.com
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