Amazon might have admitted defeat in many of its Asiatic markets, but it is not giving up on China yet, even after President Trump announced a new tariff on Chinese goods starting from July.
Alibaba filed Hong Kong Listing worth potential $20 billion. Alibaba is the largest E-commerce website in China and its home grown. The listing it has made might raise a capital of $20 billion in the third quarter of 2019.
Alibaba will use this capital to fund its technological advancements. Given the strained relationship between China and US, Alibaba is trying hard to keep up with its competitor Amazon through technology.
On the other hand Amazon is going on a hiring spree in China. It has increased its job postings by 30%. Amazon had announced that it would be ending its domestic E-commerce marketplace in China.
Stephen Rector, the Bakertown Consulting Founder admitted defeat in Eastern Asia. He said – “Amazon was never able to get into marketplace in a strong way. Based on the dominance that they have in other parts of the globe, it’s almost better to walk away from a place where your market share is so low.”
But later a spokesperson of Amazon made a conflicting statement – “Amazon’s commitment to China remains strong – we have built a solid foundation here in a number of successful businesses and will continue to invest and grow in China.”
Amazon is close to achieving global domination. It established its power in US, where nearly two-third of the Americans do their online shopping through Amazon. It started to spread its reach across the pacific.
It is facing competition in China because the home grown E-commerce company is not going to give up easily. There is going to be a clash between the two titans of the industry in China. Amazon and Alibaba will face each other off.
