China’s web giants are joining forces
Jing Dong and Bai Du have just announced plans for a merger of services on all web-fronts, marking serious competition against the likes of Alibaba’s Taobao and Aliexpress.
On the 10th of August, two of China’s web giants JD.com (JD Kepler) and Baidu announced plans for a merger of services on three fronts.
1. A seamless shopping experience
JD Kepler will start offering an exclusive selection of their products on Baidu’s mobile app (titled 京东特攻). This curated selection allows shoppers to access offerings from JD.com without having to log in to their JD accounts on their web browser.
2. More accurate recommendations
Data gathered from Baidu and JD Kepler will be pooled together and analyzed so that merchants on the JD platform will gain better insight into customer behavior. This translates into users getting better recommendations on the various Baidu channels they use, and better feedback for the various merchants that work with JD Kepler to improve their products.
3. Greater variety of content
For content creators on Baidu, the larger number of quality products introduced will also mean more starting points for them to work with. The partnership should also see better access to the merchants on JD.com, which should also translate into more content. It seems there will also be a scheme where commissions for both platforms will be split, thus incentivizing both content creators and merchants to present more high quality imagery, resulting in better content.
Overall the partnership should bring more traffic to JD Kepler and a separate revenue stream for Baidu. It perhaps also marks the start of many more such strategic partnerships to come, as the Chinese online retailers in particular seem to be moving fast to expand their customer base and improve the quality of their offerings by working with other leaders in the online space.
Sources (Mandarin): Weixin, Sina.com.cn
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