How Google & Chinese E-Tailer JD.com Plan to Take On Amazon Next
Chinese e-tailer JD.com is about to come stateside.
The e-commerce giant, which claims to be China’s largest retailer, is opening a U.S. flagship store via Google in hopes of selling more goods to American consumers. An official launch date has yet to be set.
Google purchased a $550 million stake in JD.com this year, and the flagship marks the first major initiative to come out of this partnership.
For Google, the flagship represents an opportunity to conduct e-commerce business and up its revenue through ad-based product searches — two things e-tail behemoth Amazon has a strong foothold in that the online giant may aim to disrupt.
On the JD side, the brand conducts most of its business in China. JD.com sells products within the U.S. through Walmart, one of its major stakeholders. But the Google flagship will offer the e-tailer the first opportunity to appeal directly to an American audience.
The Chinese company is making a push toward U.S. sales at a time when trade tensions between the two nations are running high. President Donald Trump made good on threats to impose tariffs on $50 billion in Chinese goods over the summer and added 10 percent tariffs on another $200 billion in goods in September.
Chinese exports to the U.S. have not ceased in light of tariffs. But another potential source of controversy could come with respect to JD.com founder Richard Liu, who was arrested on suspicion of sexual misconduct in Minnesota in September.
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