On Tuesday, it was reported by the Beijing based independent business magazine Caijing that there might be a merger deal cooking up between Amazon’s Chinese joint venture and the local e-commerce company Kaola, which is largely known for selling imported goods in China.
According to a report by the consultancy agency iiMedia, Kaola, which is owned by one of the leading internet companies in China, NetEase, is mostly involved in the dealings of products such as household appliances, apparel among various others. Kaola is becoming increasingly popular among the China-based shopping sites focused primarily on imported goods and currently trails behind Tmall Global and JD Worldwide in terms of important metrics such as revenue etc.
Kaola’s business model is fairly simple as it purchases products directly from overseas manufacturers, doing away with the middlemen and sells the imported products in China. Around last year, the e-commerce website imported more than 5,000 brands from over 50 countries.
According to a report published by Boston Consulting Group, the e-commerce sector in China appears to be more attractive and interesting than in other countries, chiefly because the consumers in the Asian country purchase products on the internet not for the reason being that it is significantly cheaper than in the physical stores but because it saves them a hell lot of time.
However, at the same time, it is not at all easy for companies to operate in China as the trade tensions between China and the US seems to be increasing every single day, making it extremely hard for the US tech giants to establish their brand in the Chinese market.
In 2016, Uber completely sold its China operations to the biggest ride-hailing firm in the Asian country Didi Chuxing after losing a two-year vigorous battle. Google, which left the Chinese market in 2010 has been looking for different ways to again enter a market where most of its products are censored by the Chinese government.
More from Business
The Top Administrative Court In Egypt Removes Ban On Ride-Hailing Firms Uber And Careem Allowing Them To Resume Their Operations In The Country
On Sunday, the highest administrative court in Egypt removed a ban on ride-sharing firms Uber and Careem allowing them to …
Twitter Co-Founder Evan Williams To Step Down From Company’s Board Of Directors By End Of The Month After Serving On The Board For 12 Years
On Friday, the micro-blogging platform Twitter announced that Evan Williams, who founded the company along with Jack Dorsey, Biz Stone, …
Chinese Search Engine Giant Baidu Surpasses Market Estimates For Fourth Quarter As Its Streaming Service iQiyi Saw A Substantial Surge In Revenue
On Thursday, the Chinese search engine giant Baidu released an official statement announcing that it has exceeded the market estimates …