Northwest Arkansas Democrat-Gazette

Amazon ramps up hiring in China

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Amazon.com Inc. is hiring by the hundreds in China to fill jobs ranging from Internet software engineers to designers for Alexa, positionin­g the company to recoup some of the market share it lost to Alibaba Group Holding Ltd. in the world’s largest online shopping arena.

The online retail giant lists almost 400 Chinese-based openings on its careers website and more than 900 on LinkedIn. They include senior executives to manage and acquire content, a leader to expand its fledgling Amazon Lending program and a head for its storefront on Alibaba’s Tmall. And it’s hiring a hardware engineer to, among other things, evangelize for digital assistant Alexa, which works with third party products even though the Echo speaker isn’t available in China.

While the Seattle-based company still sells goods from abroad to Chinese consumers and has local cloud computing customers, Amazon’s been relegated to a bit player in a domestic e-commerce market dominated by Alibaba and JD.Com. But like fellow U.S. companies Facebook Inc. and Google, it isn’t giving up on the world’s most populous nation despite powerful domestic players and increasing government restrictio­ns on foreign businesses.

China’s limits on foreign companies, and the savvy of local operators, has given rise to an alternate Web universe on the mainland. While Amazon strikes fear into rivals around the world, in China it’s dwarfed by Alibaba. Facebook’s reach stops at the border as Tencent Holdings Ltd. and WeChat rule social networking while Baidu Inc. is top of the search pile in Google’s absence.

Amazon wants to be seen as a global distributi­on network,

not just a way to reach U.S. customers. The company is encouragin­g its more than 2 million merchants, many who only sell in the U.S., to use Amazon to reach internatio­nal markets. It offers services for language translatio­n, currency conversion and tariffs to streamline the process for merchants who think it’s too cumbersome and costly to sell abroad.

Amazon’s market share in China continues to shrink. Its sales represente­d just 1.1 percent of China’s online gross merchandis­e value in 2015, and by 2016 that figure had dropped to 0.8 percent, according to an ICBC note that cited iResearch.

But Amazon has used its global reputation to keep a foothold in the business of importing goods for China’s rising middle class, who seek safe foods and authentici­ty. In the fourth quarter of 2016, Amazon controlled 7 percent of the country’s cross-border commerce, according to ICBC. It started its Prime free-shipping service in late 2016.

In the first quarter, the company’s cross-border sales were 11 times bigger than its level two years earlier. Ocean Audit, which tracks the global movement of goods, said Amazon imported 14,885 shipping containers’ worth of goods in 2016. This year it’s predicted to reach 20,000, according to Chief Executive Officer Steve Ferreira.

It’s unclear whether the current talent hunt is significan­tly accelerate­d from previous years. Amazon didn’t respond to an emailed request for comment.

This year, it started hiring human resources executives to staff a new regional “sharedserv­ices hub” in Beijing. A new office in Hangzhou – Alibaba’s hometown – is hiring sales team leaders empowered to headhunt more staff. Joyo. com, a Chinese e-commerce platform acquired by Amazon in 2004, is hiring logistics and delivery partners.

Beyond e-commerce, it’s building a Chinese content team to woo studio heads and negotiate deals for local movies and TV shows, including original content. But launching a domestic video service would be a bold step in a country where media is heavily censored by regulators. Netflix Inc. chose to sell content to local player iQiyi instead of entering the market directly, while Apple Inc.’s movie service has been blocked since 2016.

“Help create the future of Chinese digital entertainm­ent with Amazon,” one listing read.

A fraction of the Amazon listings on its website were first posted in 2016, and some specified roles supporting its businesses beyond China. A large portion of the jobs were for Amazon Web Services, the cloud computing and hosting business in which it’s the global leader against the likes of Google, Microsoft Corp. and Alibaba.

In retail, Amazon is investing billions of dollars to ramp up its operations across Asia, particular­ly in India. It entered Singapore this year, firing the first salvo in what could be a battle with Alibaba and local players for Southeast Asia.

The battle’s proven difficult in China, much as it has for its American technology counterpar­ts. Facebook’s main social networking service has been banned since 2009, yet it secretly started an app under a different name with Colorful Balloons. The company, which is said to have scouted for office space, has made no secret of its interest and works with advertiser­s there keen to reach a global audience.

Google’s parent, Alphabet Inc., is also hunting for workers even as its search and many other services remain blocked. At least 20 positions based in Beijing were advertised on the company’s careers site, spanning engineerin­g and marketing to product managers.

Despite rising competitio­n from Chinese players, Analysys estimates Amazon’s share of the Chinese cross-border ecommerce market rose slightly to 7.6 percent in the second quarter of 2017.

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