Jingdong’s cooperation with Google, looking at very complementary cooperation, is not destined to be deep from the business and financial perspectives. There are too many obstacles to be resolved. Of course, in the short term, it will create international endorsements and market value management opportunities for JD.
The business between the two parties is not truly synergistic and the rhythm of landing will not be the same.
For Google, more is the challenge of resolving Amazon and sprinting international Alibaba:
1. E-commerce is also a relatively high vertical search platform. In the past, people and information were searched for links, and now more people and services are being linked. 2. Monetization strategy. Google relies mainly on digital advertising. E-commerce used to rely more on effective advertising. Through integrated social marketing and content enhancement digital marketing capabilities. 3, Cloud and AI, Amazon, Alibaba are infiltrating Google's ecosystem through cloud+end services.
That is to say, from the underlying architecture to the commercial level, Google faces challenges, and it looks a bit OTT-like. Of course, I don't think Amazons can really subvert Google. This perception is a bit like the exaggerated game between the US and the US.
However, Wall Street will continue to worry and question Google.
Google is also strengthening e-commerce services, especially google shop. However, it lacks supply chain infrastructure and user operations. At most it is just a light entrance, and the experience is not good. In recent years, it has tried to use search and Android ecology to distort operations to suppress competition. , The effect is still general. And also attracted the EU anti-monopoly investigation, is facing a huge fine.
It is no coincidence that Google is looking for Jingdong. The Jingdong supply chain is quite famous. Especially the logistics system in the Chinese mainland is quite efficient, which guarantees the platform experience.
JD.com currently has internationalization momentum. It needs key overseas import services and it is theoretically more than good. Google can provide Jingdong with portals and some technical services overseas.
In this complementary cooperation, there is also the Chinese Internet industry has started to export its globalization. It is more concentrated in the supply chain, ecological services, and user operations.
The two sides established cooperation at the capital level and may replicate the expansion model of Jingdong (Ecological Support System) + Tencent (Entry) + X (Scene)” where mainland China continues to land. However, in internationalization, Tencent’s role was replaced by Google. And X is a land-headed snake in overseas regional markets, including e-commerce platforms and logistics facilities companies.
But this is still ideal:
1. Google is not a mainstream e-commerce portal at all. Whether it is the United States or Europe and other key regions, it is not. Business and financial contributions, even in the medium and long term, Google will not bring much benefit to JD. What's more, Google also It is impossible to rely on the supply chain support of JD.2. JD.com does have logistics and other advantages. However, besides Southeast Asia, overseas does not have any real foundation. Jingdong’s support to Google will not have much effect. 3. Jingdong does not It may continue to rely on Google's technology window and transfer of technical services. Although there are obvious differences between the two parties, there will be games in some places. Moreover, they will cause troubles in many aspects such as cloud computing, data, and payments. 4. Both parties will land overseas. , There are also many obstacles. Especially the regional market logistics system, payment platform.
In this cooperation case, the true purpose of Jingdong should be the following:
1. Pull Google endorsements to increase global volume and build trust.
Jingdong’s internationalization is certainly dynamic, but its overseas influence, not to mention Amazon, is not comparable to the overall platform brand influence.
You can start to strengthen your personal brand experience overseas from Liu Qiangdong recently. At this level, the gap between him and Ma Yun is still quite large.
Google is a global enterprise. It is even more so in the mainstream market in Europe and America. Cooperation between the two parties can increase the voice of globalization in Jingdong and create opportunities for the expansion of Jingdong, especially building trust.
In Southeast Asia and other places, Jingdong is not practical for Google. But in North America and Europe, it has no real basis.
Although Jingdong listed the United States, under the trend of global trade protectionism, it wants to land directly on the United States. It is very difficult. Google is an endorsement of its endorsement. Of course, it can play a big role, or it depends on it. At least not fast. This is not Google's Problems that can be solved.
In Europe and other places, it is more urgent.
2, disguised financing.
In the past one and a half years, Jingdong Capital has been intensive. In the following paragraph, the exploration and layout of overseas markets must also be very high frequency. However, its financial strength is still limited.
This is not to say that Jingdong has made money. Wherever there is a chance for future development, funds are not the core issue. However, we must realize that in the path of JD’s transition from integration to integration and openness, almost every link has a thirst for capital. And it Profitability, at least at this stage, is not as strong. The use of funds also has long-term and short-term efficiency differences.
This requires Jingdong’s innovative financing channel. Above we mentioned the path of 'Jingdong+Tengxun+X'. Actually, this is also a disguised financing strategy. That is to say, let JD alone go to integrate and penetrate the world of X. It’s Financial resources and ecology are not enough. Tencents play the roles of entry and funding.
The cooperation with Google also has this kind of signal. Jingdong has given a little equity. Google simply can't enter the board of directors and can't influence the decision. Jingdong has got more than five billion US dollars. Actually it is also a financing strategy. This is certainly also the Chinese Internet platform. The realization of influence.
Although capital cannot be the most important force, compared with Ali, JD's layout speed is somewhat slow.
3, change time and space with speed.
Jingdong Internationalization, it is not possible to build an entrance and technology platform in every place. Although there are localized acquisitions, but this cycle is long and full of uncertainty. With Google, Jingdong can infiltrate lightly.
In addition, the entrance actually involves the data level. Cooperation with Google can also eliminate some doubts in the regional or regional markets.
4, in disguise market value management.
JD's share price is actually quite passive. Compared with the IPO, the market value has doubled, but these four years, it did not outperform the broader market. Not to mention not match Amazon, Alibaba's performance, more Internet companies, market value increase Also better than it.
(Jing Dong Month K)
Nasdaq 100 Technology Sector Index
Amazon Month K
Ali K
Last year there was a period of time when it had to somehow raise the market value of Baidu (it would seem to be a company to back it up, huh, huh). The business and business models of the two parties were completely different. They had to simply compare the market value and try to get stuck in what JBAT. This is actually It doesn't make much sense. As a result, Baidu’s market value has now thrown away over 300 billion U.S. dollars from Jingdong.
Baidu Month K
Jingdong's scale has really grown, and the entire integrated service is also very bright. However, the real profitability is still very limited compared to the trading volume. Although this cannot be said to have problems with growth and investment value, it cannot be said that Alibaba The ad's outstanding performance is worthless. This is the choice of two paths. Jingdong has to admit that his service is actually relatively thin and his ability to reach is not as good as his opponent.
Jingdong has the motivation to increase market value. Pulling Google endorsement can create this effect in the short term. Of course, the long-term effect may not be so obvious.
Of course, JD.com holds Google, no matter how big the obstacles are, how short-term results are. If we look at the world, it allows us to see:
1. The opening of Jingdong is indeed deepening. Under the unbounded retail, Jingdong's vision is opening up, and the entire company's image has also begun to grow. 2. China's Internet industry already has a large-scale export value. China has become a hatchery highland for many business models. There are population bases, spending power, size, manufacturing, industrial structure, ecology, infrastructure, and the background of the digital transition. 3. Similarly, the overseas Internet and the entire ICT industry cannot be said to be disenchanted. Value revaluation.
The overseas giants have more technological innovation capabilities and coverage capabilities. However, there are many short boards at the floor of the landing services, micro operation level. Especially with the increasingly strengthened global supervision, the US Internet companies have faced more challenges in the past. It needs China. The fusion of internet mode.
This is the other side of the global industrial division of labor. In the past, the division of labor and migration dominated by the United States is no longer fully applicable. The cooperation between JD.com and Google has conveyed the converged appeal of the global ICT industry.
However, I still feel that I still have to return to the fundamentals to look at the cooperation case. The value of excessively high cooperation will not have any actual results. The follow-up may leave the topic behind, which is counterproductive.
Yes, even if there are more than half a billion dollars bundled and there is room for complementation, both parties are doomed to be only shallower cooperation: In addition to localized logistics, payment and other obstacles cannot really be effectively solved, and the experience will be enhanced. The data, at the user level, is unlikely to be truly open, and it is impossible to achieve intensive farming.
There can be no significant GMV efficiency gains at Google’s entrance, and actual business contributions and financial contributions can be almost negligible. JD’s is not likely to rely on Google’s entrance.
JD.com's intentions are more to create an atmosphere, sound, establish a broader trust, gain global recognition, and thus to establish cooperation with other companies and regional markets will have some convenience.
After all, JD.com's internationalization speed has been somewhat slow compared with its rivals, Alibaba. Moreover, compared to Ali’s e-Hub model, which focuses on overall output and comprehensive advantages, JD’s local logistics advantages do not have much chance of winning overseas. Its exploration has more to do with the cooperation of individual cases. It does require more efforts.
However, even if there is no real effect, Jingdong's stock price and market value may still be worth the wait.