While China's e-commerce market is set to grow to half a trillion dollars by 2016, that doesn't mean that Amazon and Dangdang are bound to benefit the most. In the video below, Fool contributor Kevin Chen explains why it's not that simple, and why Alibaba -- the one company foreigners can't invest in -- should scare investors.
As a private Chinese company, Alibaba is the 800-pound gorilla in the room, commanding 20 to 30 times the market share of Amazon and Dangdang. Because of the economics that surround Ailbaba's market dominance, it's perhaps the only company that will really benefit from China's continued e-commerce boom.
And so far, that's remained true. While Groupon seemed poised to boost its profits with Chinese growth, Alibaba's own group-buying website, Juhuasuan, may have been one reason Groupon had to close the China door.
Is there a company that can survive Alibaba's full-frontal assault and profit from e-commerce growth?
Well, there may be one in Mecox Lane. To learn more, click on the video below.
Although Amazon may not have a future in China's e-commerce market, it is still-arguably-the king of the U.S. retail world right now. But at its sky-high valuation, most investors are worried it's the company's share price that will get knocked down instead of competitors'. The Motley Fool's premium report will tell you what's driving the company's growth, and fill you in on reasons to buy and reasons to sell Amazon. The report also has you covered with a full year of free analyst updates to keep you informed as the company's story changes. To access it, just click here now.
The article 1 Private Company That'll Kill Your Confidence originally appeared on Fool.com.
Fool contributor Kevin Chen has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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