Google to invest USD 550 million in the Chinese retailer JD.com
Category: #retail  By Saipriya Iyer  Date: 2018-06-18
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Google to invest USD 550 million in the Chinese retailer JD.com

Reputed tech behemoth Google has announced that it is likely to make an investment of USD 550 million in JD.com, China’s second largest eCommerce player. As a part of the terms & conditions stated in the deal, Google is expected to acquire over 27 million newly issued Class A ordinary shares of JD.com at a price of USD 20.29 per share.

Both the parties in question have stated that they will jointly work towards creating a strong retail infrastructure, thereby improving the shopping experience of the consumers and decreasing the conflicts across myriad markets including Southeast Asia.

JD.com has stated that through this deal, the company would be able to choose among the items available for sale across Europe and the U.S. via the use of Google Shopping service.

Google through its shopping service, which assists customers to search for goods on eCommerce websites, is expected to have an edge over its competitors such as Amazon in the eCommerce sector.

Reportedly, the agreement is anticipated to open new growth avenues for JD.com. The strategic move will further allow the Chinese- based online retail firm to offer its products to the customers outside China.

Richard Liu, the CEO of JD.com, claims that the ongoing trade conflicts witnessed between China & U.S. may have quite a negative impact on many American brands. He further declared that the currently witnessed uncertainty had forced JD.com to reconsider its strategy of business expansion in the U.S.

Sources cite that JD.com is also associated with Tencent Holdings Limited, an investment holding firm based in China. The partnership will help the eCommerce firm to sell its products directly to customers via WeChat app. Additionally, JD.com seems to have joined hands with Walmart, a U.S. based retail giant, in an agreement that allows Walmart’s customers in China to use their smartphones and pay for goods that are accessible on the virtual store on JD Daojia, an online tool of JD.com.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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