So just when you think you know it all about IT support giant Amazon. Here is something else. Amazon operated deeply in China since the mid 2000s. This is an article about Amazon, China and NetEase.
So according to tech media reports, Amazon is talking with merging it’s Chinese import business. The company they plan to merge with is a massive Chinese online company they call Kaola. Also consider that an online Chinese mega store they call NetEase owns Kaola. So basically, NetEase is like China’s version of Amazon. They signed a merge deal in late 2018. But that’s about the only thing that came out it so far. So imagine if Amazon, Kaola and Net Ease all merged.
This deal has been difficult to put together. That’s why it’s not yet official. But things are moving in that direction. Because recently, Amazon made a deal with Western Union. This helps customers from Asia shop Amazon better…well…except from mainland China. How is that for irony? But Amazon does connect Chinese sellers and customers. Then consider Alibaba, one of Amazon’s main rivals. They’re making mergers as well. Now, Amazon reaches out to Kaola and Net Ease, Alibaba’s rival. So it’s going to be fun to see how this relationship between Amazon, China and NetEase plays out.
I hate to say the phrase ‘new world order’ because of what it sounds like. But that’s what Amazon wants to become in the IT service world, and the world in general. But they know in order to do that, they need China on board. After all, China is now the second biggest global economy in the world. However, as late as 2016, Amazon has less than 1% of China’s online market. Meanwhile, NetEase/Kaola has over 30%. So far, neither party is talking. I feel some kind of way about this potential merger. But from their perspective, do you see why Amazon wants this merger?