Amazon reassesses China behind the most popular Am

On October 27, Amazon (nasdaq:amzn) officially announced that its subsidiary in China, Amazon Excellence, was renamed Amazon China, and announced the launch of short domain names

Wang Hanhua, President of Amazon China, stressed that the name change shows Amazon's long-term optimism for China

at present, Amazon's share in China's e-commerce market is not high, but this foreign-funded e-commerce giant is quietly investing huge sums of money in China. At present, Amazon has built 10 new operation centers in China with a total area of 400000 square meters, 5 The preparation technology of new materials for cultural relics protection and announced that this area will double by next year

with the word "excellence" removed, this enterprise looks completely like a foreign-funded company, but it is worth asking: will such a change of identity make Amazon get rid of the so-called Waterloo of foreign-funded Internet in China

behind the renaming

the error of Taobao Mall, jd.com mall and other Chinese B2C enterprises should not exceed ± 0.5%. The growth rate of local B2C enterprises is significantly faster than that of Zhuoyue Amazon

on August 19, 2004, Amazon announced that it would purchase Zhuoyue founded by Lei Jun and Chen Nian for $75million, which became a wholly-owned subsidiary of Amazon. Amazon took this opportunity to officially enter China, and renamed its Chinese subsidiary Zhuoyue Amazon in 2007

Amazon is currently the world's largest e-commerce company, and its many pioneering works in the world's e-commerce industry have become the object of China's e-commerce business community to emulate. However, in the special Chinese Internet market, the performance of foreign Internet giants has always been poor, including Google, Yahoo, eBay, foreign Internet enterprises have had a unhappy history in China

the situation encountered by Amazon China is similar to that of other foreign-funded Internet enterprises. Whether the Chinese management team can get enough decentralization often becomes an important factor for the smooth development of an international Internet enterprise in China

according to iResearch, in the second quarter of 2011, Amazon ranked third in China's B2C e-commerce market, accounting for 2.4% of the market share. The top two were Taobao Mall (48.5%) and JD Mall (18.1%). In terms of growth rate, China's local B2C enterprises such as Taobao experimental technology mall and jd.com mall, which have high requirements, are faster than amazon.com, such as jd.com mall, which maintains an annual growth rate of 300%

however, Amazon claims that it is more concerned about long-term layout than short-term earnings. In its China business, Amazon has maintained the same strategy recently

Ya 2. Maintenance of the control system of the tensile testing machine: Jeff Bezos, the founder and CEO of Masson, is considered to be a visionary entrepreneur. His famous conflict with Wall Street has a long history. He has always disdained Wall Street's evaluation of short-term performance and always likes to play a big game. Whether it's digital publishing, Kindle Reader or cloud computing, Jeff Bezos has repeatedly proved his vision

Marc onetto, senior vice president of Amazon worldwide, stressed in an interview that Amazon will adhere to its same strategy in the United States in China, and will not consider short-term performance, continue to invest in large-scale, and do what they think consumers need

we don't care what our competitors are doing. Makonido stressed that Amazon has proved to Wall Street in the past that it has the ability to benefit from long-term investment, so it is not worried about its continuous investment in China. In the past, Amazon was considered not to pay enough attention to the Chinese market, and its Chinese business ranked behind North America, Europe and Japan. But now, Amazon says it will invest more in China

today, B2C e-commerce in China has increasingly become a very money burning industry, and the continuous investment in capital is very important. Several major B2C stations, including Amazon, jd.com and Taobao Mall, have invested heavily in the construction of logistics systems. At the beginning of this year, jd.com, Dangdang and Amazon spent money to provoke several rounds of online bookstore price wars, which directly led to the freezing of online book sales profits

Xiang, a director of an investment bank who has long paid attention to e-commerce, said that Amazon has an advantage in the ability to continue to invest funds. At present, the IPO of JD mall has been suspended due to the deterioration of the market environment. It is doubtful whether it can continue to burn money like today. Dangdangdang has been listed and needs to deal with the financial reporting pressure of Wall Street. In contrast, Amazon China does not have to worry too much about capital problems

in the past few years, Amazon has invested billions of yuan in China. Marco Nido's statement shows that Amazon will continue to invest heavily in China

this mentality of spending a lot of money regardless of short-term earnings may not be good news for other B2C enterprises in China. In the online bookstore price war first provoked by JD mall at the beginning of this year, Amazon quickly announced to follow up, and the price of books fell sharply. However, what has been listed in this battle is slightly passive due to the pressure of financial statements