JD.com will expand into South-East Asia, Europe and the US through a strategic partnership with Google announced today that includes a $550 million cash investment by the US technology giant in the Chinese e-retailer.
The two companies plan to collaborate on a range of strategic initiatives, including joint development of retail solutions in a range of regions around the world, including Southeast Asia, the U.S. and Europe.
By applying JD’s supply chain and logistics expertise and Google’s technology strengths, the two companies aim to explore the creation of next generation retail infrastructure solutions, with the goal of offering helpful, personalized and frictionless shopping experiences. JD also plans to make a selection of high-quality products available for sale through Google Shopping in multiple regions.
“This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world,” said JD.com’s Chief Strategy Officer Jianwen Liao. “This marks an important step in the process of modernizing global retail. As we celebrate our June 18 anniversary sale, this partnership opens a new chapter in our history.”
JD founder and CEO Richard Liu has declared he aims to generate about half of the company’s revenues outside China within a decade. So far the company has only expanded into South-East Asia through strategic investments in local e-commerce leaders in countries such as Indonesia, Thailand and Vietnam. But earlier this year Liu said he hoped to enter the US market in the second half of 2018 and then Europe (initially the UK, France and Germany) by next year.
Google Chief Business Officer Philipp Schindler said: "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.”