According to foreign media reports, Amazon last year in China launched the Prime member service, hoping to use goods from Europe and the United States to choose and free international courier to attract consumers. However, only these services are not enough attractive.
Retail industry analysts believe that such a situation shows that the US technology companies in the Chinese market is facing difficulties. For foreign companies, the Chinese market has a high threshold, and competitors are increasingly strong. Facebook and Google have not yet entered the Chinese market, while the Apple iPhone in China's smart phone market share is down.
Mark Natkin, managing director of Beijing Mai Bo Rui Consulting, said: "Companies including Apple and Microsoft have gradually seen that Chinese rivals are rising in the value chain, narrowing down with them and their The gap between products. & Rdquo;
Retail industry analysts say Amazon's challenge is mainly in the Chinese market, but not the basic rules of doing business. Membership services are not popular in China, and consultants say Amazon's mobile applications lag behind rivals in terms of ease of use and attractiveness.
More importantly, with the Chinese competitors to strengthen the product and provide discounts, Amazon's main selling point for Chinese consumers, that is, from Europe and the United States of genuine goods and free shipping services, attractiveness is gradually declining.
Consumer research firm Kantar Worldpannel Yu Jian, general manager of China, said Alibaba and Jingdong this year, large-scale investment to strengthen the selection of goods, and carried out a large-scale promotional activities. In the latest analysis in June, Kay estimated that Amazon's fast-growing consumer goods in China, such as paper diapers and food markets, accounted for about 1% share, unchanged from the same period last year.
Free shipping, even cross-border free delivery service, in China is not a good selling point. Many electricity providers platform to provide free courier concessions, or very low courier. For example, in the days of cat and Jingdong platform, a can of 800 grams of love his baby formula milk powder through the bonded warehouse from Germany to Shanghai can be free courier. Amazon also offers discounts for similar items.
Shirley Lu, an analyst at Euromonitor International in Shanghai, said that in China, the advantages of Amazon Prime are not outstanding. "The local business platform provides faster delivery, powerful customer service, and very competitive prices. Amazon is difficult to achieve in these areas beyond. & Rdquo;
A spokesman for the Amazon said that since the beginning of last year in early October, the Chinese users of the Prime services "strong response" since the beginning of the number of members has more than doubled. But she refused to provide specific figures.
Last October, Amazon lowered the cost of China's Prime member to $ 30, equivalent to half of the standard price. In the United States, Prime members serve an annual fee of $ 99.
However, Deborah Weinswig, managing director of Fung Global Retail & amp; Technology, New York, said that members of the market in China were hard to sell, and some scandals caused by recharge and beauty Prohibitive.
At the same time, Jingdong and Alibaba also provide member services. However, on these sites, as long as the order price of more than 15 US dollars, then you do not have to become a member, in most cases can also enjoy free delivery service. In addition, Alibaba's 88 member program is free, and often through the Alibaba website shopping consumers can get high-end brand discounts, or free concert tickets. Jingdong's Plus project price of $ 22, in addition to 5 free monthly delivery, but also provides unlimited e-books and free return service.
Oerlikon International Shirley & middot; Lu pointed out that most Chinese consumers are shopping through smartphones, but Amazon's mobile platform is relatively poor. Chinese consumers have become accustomed to the use of richer colors, as well as a variety of eye-catching promotional activities.
Boston Consulting Group analysts estimate that in this year's total turnover of China's electricity market, mobile phone shopping will account for more than 60%, about 720 billion US dollars.
Shanghai 38-year-old Internet entrepreneur Wang Hao (Wang H, sound) in the online purchase from steak to computer accessories and other goods. He said that the Amazon site "as boiled water as bland", and Jingdong's website with red and orange color, "people feel the festive atmosphere, bring shopping mood & rdquo ;.
Finally, Amazon Prime offers streaming media services that can not be used in China, although it includes many premium content.
Nevertheless, China is still an important part of the Amazon program. Amazon hopes that one day in the future can provide parcel delivery and freight services for other companies.
Amazon has been working with Chinese manufacturers and sellers to establish business relationships and encourage them to sell goods directly to US consumers through Amazon.com. As Amazon is moving more and more goods from China to the United States, taking into account the fact that Amazon is developing its own air transport capability, the company needs to fill trucks and airplanes on both directions.
"In order to improve efficiency, they need to drive the import and export of goods in the United States," said John Haber, CEO of Spend Management Experts, a supply chain consulting firm. "As Amazon has increased international shipping capacity, including autonomous aircraft, In order to achieve profitability. & Rdquo;
Looking ahead, Robert Baird & Co analyst Colin & middot; Colin Sebastian predicts that Amazon will continue to focus on global stores to help Chinese consumers buy goods from the United States and the United Kingdom. This may become the advantage of Amazon, because the image of Amazon is to help consumers buy authentic European and American goods.
Sebastian said: "Amazon retreated strategy and expectations, no longer trying to compete with mainstream online retailers. & Rdquo;