Google Just Made a Huge Investment in JD.com. Here's Why

Above A logo

Above A logo

The strategic partnership deal with China's second-biggest online retailer will see the two companies work together in order to boost JD.com's online platforms across South East Asia and beyond. As part of the deal, Google will sell JD.com products via Google Shopping.

JD.com is a Fortune Global 500 company and China's biggest e-commerce site by revenue, making it a flawless match for such a partnership. The Google-JD.com partnership could help JD.com keep an open channel to the USA and would give Google a foothold in China, where it's had trouble conducting business as most of its services are blocked because it won't censor results.

In this case, it appears that the greatest value within the partnership is the data that Google can bring to help JD.com grow outside of China.

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In the past year, Google has partnered with Walmart on multiple fronts. This will give them less than a 1 percent stake in JD, a spokesman for JD said. Items listed for sale on JD.com will be promoted through Google's shopping search results.

"This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world", JD.com Chief Strategy Officer Jianwen Liao said in the press release. By applying JD.com's supply chain and logistics expertise and our technology strengths, we're going to explore new ways retailers can make shopping effortless for their consumers, giving them the power to shop wherever and however they want.

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