Amazon is likely to announce the closure of its e-commerce and cloud businesses in China, Beijing Business Today reporte
Posted: Mon Jan 27, 2025 8:20 am
There is speculation that the U.S. tech giant has decided to close its core businesses in China, with the exception of Kindle and cross-border e-commerce, the report said, adding that the announcement will be made sometime this week. Amazon did not immediately respond to the newspapers’ request for comment. Amazon
currently has four main business units in China: cross-border e-commerce, Amazon Read, logistics and cloud computing services.
The news comes as no surprise, an industry source said. Amazon’s market share in the Chinese e-commerce sector is relatively small compared with its rivals Alibaba and JD.com, and for cross-border e-commerce in China, Amazon had only a 5.9 percent share in the second quarter of 2018, while Tmall International accounted for 29.1 percent, NetEase Kaola 22.6 percent and JD Global 13.7 percent.
Reasons
The main reason why Amazon has not developed in China greece number dataset to other markets is due to the strong competition from well-capitalized, modern companies with significant involvement in the Chinese government.
In addition to competition, culture is a major barrier and local companies have managed to read the market and the consumer to develop solutions that are more adapted to the market. Very similar to what we have in Brazil.
Future
While shareholders complain that Amazon's global dominance will be slowed by the Chinese, the world's largest company is expected to explore other emerging markets such as Brazil. What we should see here (Brazil) in the coming years is the entry of Chinese companies offering their services to a consumer market very similar to their homeland: complex logistics, limited reach and mobile connectivity.
currently has four main business units in China: cross-border e-commerce, Amazon Read, logistics and cloud computing services.
The news comes as no surprise, an industry source said. Amazon’s market share in the Chinese e-commerce sector is relatively small compared with its rivals Alibaba and JD.com, and for cross-border e-commerce in China, Amazon had only a 5.9 percent share in the second quarter of 2018, while Tmall International accounted for 29.1 percent, NetEase Kaola 22.6 percent and JD Global 13.7 percent.
Reasons
The main reason why Amazon has not developed in China greece number dataset to other markets is due to the strong competition from well-capitalized, modern companies with significant involvement in the Chinese government.
In addition to competition, culture is a major barrier and local companies have managed to read the market and the consumer to develop solutions that are more adapted to the market. Very similar to what we have in Brazil.
Future
While shareholders complain that Amazon's global dominance will be slowed by the Chinese, the world's largest company is expected to explore other emerging markets such as Brazil. What we should see here (Brazil) in the coming years is the entry of Chinese companies offering their services to a consumer market very similar to their homeland: complex logistics, limited reach and mobile connectivity.