Amazon.com, Inc. (NASDAQ:AMZN) is no threat to the Alibaba Group Holding with its latest move in China, Kara Swisher said in a recent interview on CNBC. The comment from the Re/Code co-executive editor comes as Amazon.com, Inc. (NASDAQ:AMZN) on Wednesday revealed that it is putting up a facility in the free trade zone located in Shanghai, China. This move is seen as the company signaling its intent to stay in the Chinese market and grow its business in the territory.
Alibaba Group Holding is the biggest internet commerce company in China followed by JD.com. According to Swisher, Amazon.com, Inc. (NASDAQ:AMZN)’s standing in China is the reverse of what it has in the United States.
“It’s sort of like Alibaba coming to the United States, except that it’s China, which has much more stringent rules. It’s really unclear how they are really going to operate in the free trade zone there. There’s a sort of hype around it, but doing business in China is a little different than doing business anywhere in the world […],” she explained.
Furthermore, she noted that tight now, Alibaba is the dominant player in the country which makes it the Amazon of China. Nonetheless, in terms of boosting the business of Amazon.com, Inc. (NASDAQ:AMZN), Swisher remarked that China is “the big market” where factors like a burgeoning middle class and developments in technology make it an attractive market to do business in.
Swisher added that China is a country that is coming by its own in the same way that the United States did when it was developing in terms of digital commerce. Technology, companies need to be in the Chinese market, she said. However, the Re/Code co-executive editor noted that China has been a very difficult market to penetrate for American companies for decades.
If Amazon has a challenge to overcome in China, Swisher said that it is to build their brand in the country otherwise it may already be too late for the global e-commerce giant.
Among Amazon.com, Inc. (NASDAQ:AMZN)’s shareholders is Legg Mason Capital Management managed by Bill Miller. The hedge fund reported owning 327,232 shares of the company by the end of the second quarter of this year.
Disclosure: None
Suggested Articles:
States With Highest Suicide Rates
Most Secluded Homes In The World
