Introduction

Many of America's leading digital companies, including Google, Amazon, eBay, and Uber, have
been able to gain popularity not only domestically but also internationally, firmly entrenched in the
lives of every Internet user. Well, or not quite everyone, because in China, the world's largest digital
market, all these companies have failed.

Executive summary
Many blame the Chinese government's censorship and cultural differences between China and the
West for this failure. While these factors did play a role, they are far from the only ones. Google, for
example, has succeeded in many overseas markets that have radically different political systems and
cultures (Indonesia, Thailand, and Saudi Arabia). Moreover, these reasons have not stopped Western
multinational corporations in the automotive, food and film industries. So why is China so hostile to
digital companies in particular? In this paper I will show general reasons of failing in China most
western corporations and Individually Amazon.

Body One : General factors

I think that there are three key factors here: 1. poor understanding of the business environment, 2.
ineffective strategy formation and communication, 3. "gaps" in the implementation of the company's
strategy itself. In essence, these digital companies have underestimated the strength and resilience of
Chinese competitors. Their success in other markets gave them a false sense of security and
invincibility, and this played a cruel joke on them. So what is it, these companies are now doomed to
fail in the Chinese market? Of course no. There is no problem that cannot be fixed, however, you will
have to try hard.

First, it's important to remember that just doing things right is not enough. China has huge
geographical and socio-economic differences with Western countries. Chinese preferences evolve
rapidly and sometimes erratically. And it's not enough just to follow the beaten path. Let's take Uber as
an example. The company carefully analyzed the mistakes of other carrier companies and corrected
them, but this did not help. Conclusion: even an excellent strategy does not guarantee success in
China, so the company needs a more holistic approach.

Secondly, we need to think about the additional advantages, so to speak, the trump cards that
Western digital companies have. These firms cannot rely solely on innovation, as the Chinese are
adept at “adopting” advanced technologies and adapting them for their market. So here you need to
look for advantages everywhere, from regulatory loopholes to charity and heartbreaking stories.

And third, you need to experiment with strategies and innovations. Due to rapidly changing user
preferences in the digital marketplace, new ideas may become obsolete before they are fully
implemented. As a result, you will have to change course and business strategy again. Here, as they
say, you need to be ready for new customer requests even in the middle of the night.
 Body two : Failing reasons for Amazon

The extraordinary potential of China attracted many multinational companies to become the world's
second largest economy, but many of them failed. Amazon did well last year, joining established
Western leaders like eBay, Google and ASOS, and now they have one thing in common: their failures
in China. Fifteen years later, in April 2019, Amazon announced its exit from the Chinese market,
effectively ending Amazon.cn's market operations, leaving only Amazon Web Services, Kindle e-
readers, and the cross-border business. What exactly motivates these companies not to disclose these
low numbers in their financial statements?
Amazon entered the Chinese market by purchasing the popular online bookstore Joyo.com in 2004
for $75 million. Over the next decade, it evolved into Amazon China, whose B2C market share
reached 15.4% in 2008. Huge growth rates, including companies that have changed the whole
landscape. In 2004, the retail platform JD.com was launched. In 2008, Alibaba launched Singles Day.
Ten years later, sales reached $30.8 billion in 230 countries and regions around the world. Amazon's
market share at the time of its departure was 0.6%, compared to 61.5% for Tmall and Alibaba and
24.2% for JD.com in the fourth quarter of 2018. So how has Amazon's global success and
competitiveness been stifled by the homegrown Chinese giant?
FAILURE TO ADAPT

Although Amazon entered the market earlier, it has found it increasingly difficult to compete with
domestic giants and has received more attention for failing to effectively attract consumers to its
platform.Setting aside the obvious problems that accompany the Chinese market, including large
competitors and a strict regulatory environment, one of Amazon's fundamental strategic weaknesses is
a lack of trust in local leadership. JD.com CEO Liu Qiangdong emphasized that the lack of a reliable
decision-making body in a rapidly changing environment will always lead to the collapse of Amazon.
He also pointed out that their general managers are always non-Chinese and have never lived in China
before, putting them at a huge disadvantage compared to aggressive local companies that are well
capitalized and fully understand consumer needs.

The platform's product range and user interface lacked a deep understanding of its customer base
and was widely criticized for it. In order to keep its brand image unaffected by regional taste
differences, Amazon keeps its design relatively simple and minimal. "If you look at the user interface
of an Alibaba or JD.com website [...], it's very colorful and contains a lot of ads," said Ker Zheng, an
e-commerce marketing expert in Shenzhen. Simpler interfaces and simpler payment methods, such as
Alipay; failure to take advantage of promotional days such as Singles Day; and a more competitive
product range and faster competitor shipments, all of which lead to a high level of internet literacy.
The loss of customer base and the eventual demise of Amazon China. Counterfeiting was a pervasive
problem in markets that initially trusted Amazon, but Amazon's advantage has faded as rivals have
become more capable of weeding out fakes.
In another fatal miscalculation, Amazon spent billions opening 15 fulfillment centers, managing
most of its own inventory, and building its own infrastructure, just as it started to succeed in other
markets. While Amazon has expanded its logistics footprint, it has not generated revenue, and its
fiercest rival Alibaba has dominated the big market by hosting "some smaller suppliers and using local
couriers" to help it offer lower prices. part of the market and ultimately plunge Amazon into obscurity.
JD.com is moving closer to the Amazon model by investing more in infrastructure, but in the end it
just wins the competition because Amazon can't offer the same range of products and fast shipping.
Chinese consumers are used to fast same-day delivery, and Amazon still lags behind the longer two-
day delivery.
The lack of importance of localization in everything it does, from product to shipping speed to
customer interaction, has left Amazon with no choice but to abandon its e-commerce ambitions in
China. The only viable pieces left are its cloud services, its Kindle, and, somewhat surprisingly, its
cross-border e-commerce. Despite a different set of operations and challenges, the advantages Amazon
enjoys in cross-border shipping, such as a small assortment of high-quality products appealing to
affluent people willing to accept longer delivery times, will also depend on its ability. Learn from your
inner failures. As competition from Pinduoduo and Xiaohongshu intensifies, and Amazon's rivals are
also gaining momentum in international markets, experts have expressed some skepticism. Amazon
bought Kaola from NetEase with a 22.6% market share, but was rejected when Alibaba bought Kaola
for $2 billion in late 2019. Despite steady progress, Amazon also risks failing here if it doesn't adapt
decisively to the local market.

Summary
Including all views about failing not only Amazon and another western corporations in China we
can understand the general factors was not including aspects of local market . Characters of Chinese
market is deffers from another markets . From my point of view Chinese people differs from another
nations by character and not any western corporations take into consideration that . For that case
majority of corporations failed while entering Chinese market . Tao bao , Pinduoduo , JD local
corporations knowing aspects of local market effectively expanded their business . Overall thinking ,
every company should consider local market while opening another market .

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