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India, China face exodus of millionaires: report

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Washington: India and China are facing an exodus of their wealthiest citizens with tens of thousands of “high-net-worth individuals” (HNWIs) having left to seek greener pastures, according to a new report. inidian-nri

As many as 61,000 Indian millionaires left the country and settled overseas in the last 14 years, second only to China which saw an exodus of 91,000, according to a report by consultancies New World Wealth and LIO Global.

France, Italy, Russia, Indonesia, South Africa and Egypt round out the top eight, according to the study cited by Time magazine.

The study, released this month, looked at immigration data from 2000 and 2014 indicating applications for a second citizenship or change of domicile (permanent residence).

Britain — its capital city London, in particular — appears to be the most popular destination for the world’s rich to settle down in, followed by the US, Singapore, Australia and Hong Kong.

The report said Indians tend to move to countries like Australia and the United Arab Emirates, while Singapore and Hong Kong are popular destinations for China’s wealthy.

Despite the large-scale departure of millionaires, India still has the tenth largest number of millionaires at 226 800, while China stands fifth with 608,500. The US tops the list with 4,105,000 millionaires.

Those who leave generally cite reasons like “turmoil in home country, security concerns and optimizing education of children,” the report said.

Highlights:

Britain was the top beneficiary of HNWIs from abroad. Most of these HNWIs came from Europe, Russia, China and India.

Inflows into the US predominantly came from China. Notable numbers also came from Britain, India and Russia.

Singapore in second place benefited from a strong migration of HNWIs from China, India and Indonesia.

Australia was boosted by strong inflows from the Asia Pacific region (India, China, Indonesia), as well as Britain and South Africa.

The UAE (mainly Dubai) saw strong inflows from North Africa, India and Middle Eastern countries.

Indian HNWIs tended to move to the UAE, Britain, the US and Australia.

(IANS)

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Amazon Plans to Close its Domestic Marketplace in China by Mid-July

Amazon shoppers in China will no longer be able to buy goods from third-party merchants in the country, but they still will be able to order from the United States, Britain, Denmark and Japan via the firm’s global store

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FILE - Amazon plans to close its domestic marketplace in China to focus on more lucrative businesses there. VOA

Amazon.com Inc. plans to close its domestic marketplace in China by mid-July, people familiar with the matter told Reuters, focusing efforts on more lucrative businesses selling overseas goods and cloud services in the world’s most populous nation.

Amazon shoppers in China will no longer be able to buy goods from third-party merchants in the country, but they still will be able to order from the United States, Britain, Denmark and Japan via the firm’s global store. Amazon expects to close fulfillment centers and wind down support for domestic-selling merchants in China in the next 90 days, one of the people said.

Home-grown e-commerce

The move underscores how entrenched, home-grown e-commerce rivals have made it difficult for Amazon’s marketplace to gain a foothold. Consumer insights firm iResearch Global said Alibaba Group Holding Ltd’s Tmall marketplace and JD.com Inc. controlled 81.9 percent of the Chinese market last year.

“They’re pulling out because it’s not profitable and not growing,” said analyst Michael Pachter at Wedbush Securities. Ker Zheng, marketing specialist at Shenzhen-based e-commerce consultancy Azoya, said Amazon had no major competitive advantage in China over its domestic rivals.

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FILE – A logo of JD.com is seen on a helmet of a delivery man in Beijing, June 16, 2014. VOA

Unless someone is searching for a very specific imported good that can’t be found elsewhere, “there’s no reason for a consumer to pick Amazon because they’re not going to be able to ship things as fast as Tmall or JD,” he said.

Amazon’s customers in China will still be able to purchase the firm’s Kindle e-readers and online content, said the sources, who spoke on condition of anonymity. Amazon Web Services, the company’s cloud computing unit that sells data storage and computing power to enterprises, will remain as well.

The U.S.-listed shares of Alibaba and JD.com rose 1% Wednesday after Reuters first reported the move, before paring gains later in the day. Amazon’s shares closed flat.

US retreat, e-commerce showdown

The withdrawal of the world’s largest online retailer — founded by the world’s richest person — comes amid a broader e-commerce slowdown in China. Alibaba in January reported its lowest quarterly earnings growth since 2016, while JD.com is responding to the changing business environment with staff cuts.

 

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FILE – A worker removes an advertisement billboard of Indian online marketplace Flipkart, installed along the roadside in Mumbai, India, Oct. 16, 2015. Amazon.com Inc. is concentrating on India and its competition, Flipkart. VOA

It also follows the Chinese e-commerce retreat of other big-name Western retailers. Wal-Mart Stores Inc. sold its Chinese online shopping platform to JD.com in 2016 in return for a stake in JD.com to focus on its bricks-and-mortar stores.

Similarly, the country appears to factor less in the global aspirations of fellow U.S. tech majors Netflix Inc., Facebook Inc. and Alphabet Inc.’s Google, Pachter said.

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Amazon bought Chinese online shopping website Joyo.com in 2004 for $75 million, rebranding the business in 2011 as Amazon China. But in a sign of Tmall’s dominance, Amazon nevertheless opened an online store on the Alibaba site in 2015.

The firm is still expanding aggressively in other countries, notably India, where it is contending with local rival Flipkart. (VOA)