Google has been putting a lot of effort into getting their foot in the door in China and it seems to be slow progress for them. Last year, the company launched a dedicated artificial intelligence center within the country and shortly afterward they increased the number of engineers in its China-based hardware team from 20 to 150. So while they have yet to bring their staples (such as search and advertising) back to the market, they are slowly working on the transition process. Today, both Google and JD.com announced a new partnership which will enable both companies the ability to explore joint development of retail solutions.
Unless you live near the country, you likely haven't heard of JD.com before. They describe themselves as China's leading technology-driven e-commerce company thanks to its cutting-edge retail infrastructure. This allows them to offer products to their customers whenever they want and wherever they want. Doing this in the massive country of China requires building relationships to create your own supply chain while also developing the logistics to actually get the products delivered to the customer on time.
Google realizes that the Asia-Pacific region is one of the largest and fastest growing e-commerce marketplaces in the world. They're expected to spend over $88 billion online by the year 2025. So Google is investing $550 million into JD.com in an attempt to accelerate how retail ecosystems deliver consumer experiences that are helpful, personalized, and high quality. Google will be helping JD.com by applying their technology strengths to JD.com's established supply chain and logistics expertise.
They will also team up together to explore new ways retailers can make shopping effortless for their consumers. Not only this, but Google has agreed to include JD.com in their Google Shopping service which will allow them to bring some high-quality products to consumers in multiple regions around the world.
Source: JD
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