Alibaba and JD.com Join in on the Internet of Things Race.
The Internet of Things has been appearing quite a lot lately making headlines from ambition tech giants making all sorts of acquisitions or release their very own gadgetry surrounding the technology. As of recently, two very well known Chinese e-commerce firms are planning to make a move into the space with their very own individual platform that aims to helps smart home appliance manufacturers.
With a recently fresh US IPO that has raised a total of $1.78 billion during the previous month, Chinese e-commerce firm JD.com has announced the launching of a cloud platform to help out manufacturers in the ‘Internet of Things’ sector come up with much more appealing products for online shoppers. A spokesperson unveiled that it shall utilize big data to help manufacturers understand consumer needs.
The Smart Cloud service provides free cloud computing support for JD’s home appliance partners, which include features such as cloud storage, big data analysis and the support for creating what’s known as a super-apps to manage all of the home appliance from a single place. To roll out its program, the company has signed a collaborative agreement with a number of Chinese consumer electronics and home appliance manufacturers, which includes Haier, Hisense, TCL, Huawei and Lenovo.
JD’s recent move into this sector also comes along with its partnership with Tencent, in which it gained a 15 percent stake into JD, with Bloomberg labeling this deal at $214.7 million. Tencent also subsequently further subscribed at IPO price for an additional 5 percent of JD, which the company revealed totaled to be $1.3 billion from the issuance of 138,014,720 Class A ordinary shares.
During the meantime, a website from Alibaba’s own cloud service Aliyun has also launched live, with the main objective to help out manufacturers with service that may need in their process to produce smart home appliances. Alibaba hasn’t announced any partnerships yet, which makes its approach slightly more passive, but the site is currently available for manufacturers to access. They will be able to tap onto the cloud storage service, Taobao login systems and payment mechanisms, as well as developers platform to help with the application solutions.