Google to Invest $550M in China E-Commerce Giant JD.com
Google will invest $550 million in Chinese e-commerce powerhouse JD.com, part of the U.S. internet company’s efforts to expand its presence in fast-growing Asian markets and battle rivals including Amazon.com. The two companies described the investment as one piece of a broader partnership that will include the promotion of JD.com products on Google’s shopping service. This could help JD.com expand beyond its base in China and Southeast Asia, establishing a meaningful presence in U.S. and European markets. The JD.com partnership not only lets Google bolster its retail ambitions in China but also allows it to further tighten its relationship with Walmart, another JD.com investor.
Total Retail's Take: As Google looks to further grow its commerce business, it makes sense that it would target one of the fastest-growing e-commerce countries in the world, China. Furthermore, as Amazon continues to grow market share in the U.S., other retailers and brands are making investments abroad — Walmart acquiring Flipkart, for example — to grow their international businesses. By strengthening its presence in China through one of the country's established e-commerce retailers (JD.com), Google has made a pre-emptive strike against Amazon.