The Chinese market is notoriously difficult for American businesses to thrive in, and that's as true in technology as in any other industry. Google is clearly keen to increase its standing there, however, and has just announced a new partnership with one of the country's largest online retailers.
JD.com is a Fortune Global 500 company and China's biggest e-commerce site by revenue, making it a perfect match for such a partnership. Google is going to invest $550 million in the retailer, hoping to combine its strengths in technology with JD's supply chain and logistics expertise and reach new customers in the world's second-fastest growing economy.
"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.”
Google Chief Business Officer Philipp Schindler.
The deal could mean exciting new ways to shop for consumers in China, and at the same time, JD.com will be added to Google Shopping, making a range of the site's products available in more regions around the world. Residents of Southeast Asia are expected to spend $88.1 billion online by 2025 and this is Google's play at grabbing a slice of the lucrative pie.