Amazon’s Chinese unit in merger talks with NetEase, the Kaola: report

The logo of Amazon is seen on the door of an Amazon Book store in New York City, united states, February 14, 2019. REUTERS/Brendan McDermid

(Reuters) – Inc the Chinese joint venture is in discussion for a merger with the local e-commerce company Kaola, which sells imported products in the Asian country, business, Caijing magazine reported Tuesday.

Kaola, owned by NetEase, Inc., sells clothing, household appliances and other products and is the largest of the Chinese shopping sites, which focus on the imported goods, followed by Tmall Global and JD Worldwide, according to a report.

It buys goods directly from overseas manufacturers and last year imported more than 5,000 brands from 80 countries.

Amazon has been trying to push into China and compete with homegrown rivals Alibaba Group Holding and but so far, the Seattle-based online retailer has no significant progress in the country.

From mid-2018, Alibaba led the e-commerce market in China with a 58.2 percent share, while Amazon was a distant seventh with a less that 1 percent market share, according to research firm eMarketer.

Amazon does not immediately respond to Reuters’ request for comment on the Caijing report. NetEase declined to comment.

Reporting by Sayanti Chakraborty in Bengaluru; Editing by Sai Sachin Ravikumar

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