Even Google Inc (NASDAQ:GOOG) recognizes Alibaba’s dominance. Last December, Google shut down Google Shopping in China because it wasn’t “providing businesses with the level of impact we had hoped” — in other words, it wasn’t making any money. There’s no need for a product search engine when people buy straight from your website.In short, even the big G wasn’t able to translate a popular U.S. product abroad and successfully venture into the Chinese e-commerce industry.
While another gigantic competitor could take on Alibaba, it probably won’t happen. After years, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) finally launched its product search engine. And you might think that with a $1.5 billion war chest, it could unseat Alibaba’s dominance. But that’s not likely. Baidu doesn’t even register on e-commerce market share reports. More importantly, Alibaba is actually moving into Baidu’s space. To get closer to shoppers, Alibaba is developing a smartphone and mobile operating system. So Baidu seems like it’ll need that money to beat back Alibaba.
Should you sell your shares in Chinese commerce?
If you’re looking to get rich off of China’s growing mobile commerce industry, I’d be hesitant to bet against Alibaba. Given the company’s juggernaut status in the industry, it doesn’t seem as if it’s going down anytime soon. Seeing that Google Inc (NASDAQ:GOOG) has resigned itself to Alibaba’s dominance, I’d do the same. Sell your bets in Chinese commerce before your investments turn to zero.
The article Mobile Commerce: 1 Company Dominating This $41 Billion Industry originally appeared on Fool.com and is written by Kevin Chen.
Fool contributor Kevin Chen owns shares of Baidu. You can follow him on Twitter at @TMFKang, or on Google+. The Motley Fool recommends Amazon.com, Baidu, and Google and owns shares of Amazon.com, Baidu, Google, and Microsoft.
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