Chinese local media's interpretation in Google's investment on Jd.com
Google and JD.com announced a strategic partnership, with Google investing $550 million in JD.com, reported in FuninUSA news. According to the agreement, Google will receive 27,106,948 newly issued JD Class A ordinary stock shares at an issue price of $20.29 per share.
Google will receive 0.93 per cent of JD.com shares.In interviews, the two sides jointly said the shares in the deal had a one-year lock-up period. Google will not get a seat on JD.com's board in this deal. Also, Google officials said there were no plans to increase the stake so far.
When asked whether the partnership will affect JD.com’s future return to the Chinese stock market through CDR, Jd.com replied that its partnership with Google focused on providing better retail solutions for emerging markets, which has nothing to do with any potential future domestic launch of Jd.com.
Based on investment, Google and Jd.com will collaborate on a number of strategic projects. The two sides said that the core areas of cooperation at this stage are to provide retail solutions in the global market, provide products through Google Shopping and create a more convenient Shopping experience online and offline. The first markets to be targeted are southeast Asia, US, and Europe.
JD.com’s chief strategy officer Liao Jianwen said that the cooperation with Google opened up broad space for innovation, which enables JD.com to create high-quality consumer experience for global consumers. This is a significant step in the modernization process of global retail.
Google’'s chief commercial officer Philipp Schindler expressed the willingness to cooperate with JD.com, jointly explore to provide new solutions to global retail ecosystem, and provide consumers with valuable, personalized, and convenient shopping experience, letting the consumers can shop in their preferred ways anywhere at any time .
Obviously, both sides have their own purposes in this cooperation, written in FuninUSA news. Jd.com hope to expand its overseas market shares by copying the Chinese market mode (including supply chain management, purchasing and logistics, etc.) For Google, it hopes to explore deeply in e-commerce field, thus against Amazon’'s growing e-commerce business and product search. The cooperation is conducive for Google to compete for the voice interaction market in the field of e-commerce field in the future. Google officials said Google Shopping has already had lots of partners: more than 50 retailers and distributors around the world, including Walmart, Target and Carrefour.
Finally, when asked whether both sides of the data will be shared with each other in the future, Google said that the protection of users’ privacy is the first priority. Google will give users the right to control their own data and will not sell or share users’ personal info to anyone. Jd.com also promised that jd.com has strict rules on protecting users' privacy and security, and will not share users' personal info with any partners.