Google is looking to embrace Chinese Ecommerce with $550 million JD investment
Google’s search engine and related services might not have been able to make it past the Great Firewall (the Chinese state’s hard border of internet services and content that has locked out most international internet companies), but that doesn’t mean it has no interest in the country. China’s Ecommerce market is the largest in the world: in 2017, it accounted for 17% of all retail sales, and that’s expected to rise to 25% in 2020. The sheer size of the country, as well as its tech-savvy, newly wealthy, consumer base, makes it a region that few companies can ignore. Now, Google ahs found another way in – with a $550 million investment into Chinese Ecommerce firm JD.com.
Both companies share prices have traded up over the last 30 days
SOURCE: Yahoo Finance
According to a joint statement issued by Google and JD.com, the companies will “explore joint development of retail solutions in regions, including Southeast Asia, the U.S. and Europe.” It’s part of a bigger plan from Alphabet-owned Google to conquer the world of online sales, and comes just a week after it signed an agreement with Carrefour SA (one of France’s biggest supermarket chains) to sell groceries online in France.
The French agreement will let Google prompt consumers to order staples through their smartphones, tablets and other devices. While the Chinese deal will combine Google’s technological pedigree with JD’s “expertise in logistics and supply chain.”
Google’s chief business officer, Philipp Schindler, said in the statement: "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.”
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