— This is the script of CNBC's news report for China's CCTV on June 19, 2018, Tuesday.
The cooperation between Google and JD.COM focus on the possibility that they may develop further cooperation in different projects. One of the projects that draws attention from the market is that jointly launches the retail resolution plan. Even though no more details have been released yet, the market thinks that
In terms of Google, it scales the Asia market. Google’s recent investment shows that this tech giant is increasing its investment in Asia. The boom spending ability of middle class and developing retail fundamental infrastructure, this kind of growth potential drives the tech giants of China and US scale their market, taking the preemptive. Google bought a share of Go-Jek, Indonesia taxi app. At present, there is news said that google is now contacting India E-commerce company Flip kart, discussing the potential investment.
Making further investment on retail industry in Asia will be a strategic trend for Google. As for JD.COM, this cooperation is an important step to its international strategy. We have seen that the cooperation of JD.COM and Google enables JD.COM to select a series of products and sell them through “google shopping” in various regions of the world.
Currently, google shopping has more than 50 retailers and channel providers, including Walmart, Target and Carrefour etc. Some analysts believe that in the cooperation of JD.COM and Google, the most valued trading resource that JD.COM is looking for is Google’s search traffic, while Google values JD.COM’s E-commerce and logistic.
The market holds a positive attitude to this cooperation. The stock price of Google’s parent company Alphabet was up more than 2% in the overnight.
And JD.COM’s stock price opened high in the overnight, but shed a little bit later, closing up 0.39% in the end.
The stock price of JD.COM has increased nearly 10% in the past 5 trading days. Another point worth mentioning is that
Google shopping is named as “anti-amazon institution” by the market. It also shows that not only traditional E-commerce cooperate with Google and other tech giants who has traffic, but also the small E-commerce or overseas competitors also get united to compete with amazon.
According some data from institutions, amazon is still the first choice for US shoppers, in order to compete with amazon, Google has improved its search results and ads, at the same time it also takes measures that emphasis on shopping. Now, Google's strategy has already played an effective role to certain degrees.
In 2017, there are around 49% US consumers visited Amazon first, in 2016, this figure is 55%. Meanwhile, the search percentage for Google and other search engine increased from 28% in 2016 to 36% in 2017.
Therefore, these 2 groups are growing simultaneously. However, the decisive factor is whose growth speed is faster and who can take the preemptive in overseas and scale its global market in advance.