Google and JD.com: a $550 Million alliance
Google and China
The mega-company Google has had its fair share of history in China; good and bad. In 2010, Google made the decision to withdraw itself from China, stating that they no longer shared the ideology that their platform should censor itself to adhere to China’s guidelines[1]. Recently, however, Google has made it known that they want to reinsert themselves in “the planet’s largest population of internet users”[2].
JD and Google
As a first step towards its reemergence in China, Google has made steps to invest half a billion dollars in the “second-largest e-commerce site”[3] JD.com. To make the partnership complete, “JD.com will join the Google Shopping advertising platform”[4]. The alliance between the two giants is supposedly to help work towards the goal of creating a more streamlined foundation for “multiple markets, including Southeast Asia”[5]. Google would not only gain massive amounts of visibility on a more complete global sphere but would also be a link to connect China with the U.S. again; and would provide Southeast Asia with more opportunity to be more successful in the e-commerce space.
That is not to say that it will be easy for Google to reinstate itself in China; since their removal in 2010, there was a necessity for other platforms to fill that space in the bustling technological world; especially in the giant that is China.
For, partnering with Google is a huge advantage; getting products on their shopping platform means access to the globe, and for consumer visibility to expand exponentially. Not only is this important for China, but for the United States as well. Under President Trump, it is no secret that the relationship between China and the U.S. has been full of tension; however, this new joint venture is a beacon of light for a brighter relationship in the future. In accordance with Google, JD.com would also be at an advantage over their competition; “Both companies have invested significantly in technology, retail and logistics to win over consumers”[6].
In order to separate themselves from the other tech companies making strides towards the e-commerce world, JD.com has “been testing out drone delivery services to reach China’s rural consumers while keeping the JD.com logistics cost relatively low”[7]. JD.com works in tandem with other companies under the name Tencent, such as WeChat, Alibaba, and China’s version of YouTube: TenCent Video. “JD.com’s partnership with TenCent allows the e-commerce company to sell directly to consumers through the WeChat app”[8], therefore rounding out their capabilities of reaching the everyday consumer in China.
For the Seller
This news of a partnership between Google and JD.com is huge not only for the two companies and the countries involved, but for the individual Seller; an alliance through these two tech and e-commerce giants would make products more accessible and make it easier for the Seller to reach an audience globally. Not only that, but the system would be more automated; a seamless system and connection between selling in the United States and China. This news, especially in today’s political climate with President Trump’s idea of a trade war, is definitely a step in the right direction.
Google and JD.com: a $550 Million alliance – Conclusion
Although there aren’t many details out at the current moment, the sheer fact that Google invested $500 million into JD.com is big news, and there is no doubt that new details will come to light as the two companies solidify the partnership. For more information on this exciting news, keep track of the upcoming articles.
Adina is a Summer Associate with Rosenbaum Famularo, P.C., the law firm behind AmazonSellersLawyer.com and RosenbaumFamularo.com.
She graduated with a bachelor’s degree in Political Science with a minor in Chinese Language from Trinity College. She will begin law school at New England Law, Boston in August 2018.
[1] https://www.nytimes.com/2018/06/18/technology/google-china-jd-com.html
[2] Ibid.
[3] Ibid.
[4] Ibid.
[5] https://www.cnbc.com/2018/06/18/google-to-invest-550-million-into-chinas-jd-com.html
[6] Ibid.
[7] Ibid.
[8] Ibid.