Amazon – What is Amazon in China?
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China Market Entry in 2004
Since entering the Chinese market in 2004, Amazon has become a major player in the local online book market. The company purchased the local retailer Joyo in 2004 and rebranded the site as “Amazon China” in 2011. While Amazon enjoyed initial success in China, its market share has fallen to less than 1 percent today. But with the recent opening of e-commerce sites in Hong Kong, Macau, and Taiwan, the company may be poised for more growth.
Market Share in China is small
Despite being one of the largest online retailers in the world, Amazon is still a small player in the country. While Alibaba’s online sales are increasing, Amazon’s profits are falling. This is due to the fact that Alibaba has a much larger customer base than the US retail giant. The company is also losing market share to Walmart, which is a global player that has been a major player in the country. There are more than a few reasons for this, but the most compelling reason is that Walmart has been in a competitive environment for years.
Despite Amazon’s success in its domestic e-commerce business in China, it’s still facing stiff competition there. The Chinese government recently passed a new law that promotes cross-border e-commerce. Its provisions are aimed at making cross-border commerce easier and more cost-effective for foreign retailers. There’s a lot of competition in China, but the company is well-positioned to take advantage of the advantages it has.