What Is The Revelation Of Amazon'S Failure To China?

Recently, the news about "Amazon will withdraw from the Chinese market" came in a lot, and attracted much attention from the industry.

As a party, Amason made two rounds of voices, strongly denying this statement.

In April 18th, Amazon responded by saying, "in the future, it will continue to invest and promote the development of offshore outsourcing, global store opening, Kindle and cloud computing", but this has not yet dispelled market doubts.

Soon, Amazon's voice again indicated that it would stop providing seller services to the third party sellers on Amazon's website in July 18, 2019.

The industry has the view that in the strong rise of Tmall, Jingdong, and many other domestic electricity providers, the localization of the Amazon has been gradually marginalized, and finally can only retire.

But some people pointed out that Amason's adjustment is not to withdraw the electricity business from China, but to focus on more competitive cross-border electricity providers.

As an electric power giant with quality, logistics and other advantages, Amazon is developing smoothly in the United States. Today, however, this good hand can not play a role in China. The reason for it is a reflection. What inspiration can the domestic electricity supplier enterprises get from it, and it has more reference value.

Under the vacancy of localization, it is difficult to retreat or retreat.

Public information shows that Amazon was founded in 1995 as the world's largest e-commerce enterprise, and has always been known for its "quality excellence".

In 2004, Amazon entered the Chinese market vigorously through its acquisition of excellent network. Since then, Amazon has always adhered to the global strategy and followed its business model in the US.

"When I graduated from university just over ten years ago, the domestic electricity supplier just started, and the more famous one is Dangdang."

Wang Dan, a senior online shopping user, said to blue whale TMT reporter, "Amazon came in, and Hai Tao basically used this platform.

Its quality is guaranteed, logistics is fast, and there is a very strong after-sales service, the overall experience is quite good.

For Amazon to abandon China's domestic electricity business, Wang Dan is not surprised, but I feel a little sorry.

"Because Amazon's page design is not friendly to Chinese users, the product introduction is also very simple. After 2014, there will be more charges for delivery, and more and more slot points."

When it comes to the reasons why Amazon China has broken down, Cao Lei, director of the electronic commerce research center, said that the self operated mode of Amazon China is too "heavy". Although it has the advantages of standardization, controllable product quality and systematic paction process, the shortcomings of high storage cost, high storage pressure and high human cost are obvious.

At the same time, Amazon frequently changes its CEO in China. There is a lack of enthusiasm, innovation mechanism and strategic direction of the whole team.

In addition, the market expansion rate of Amason in China in the past 15 years is far less than that of many Chinese e-commerce platforms. It has not only Ali, Jingdong and other old rivals, but also faces competition from many new business platforms such as many spells.

The "cake" of China's electricity supplier B2C is almost completely destroyed. Amazon is hard to "encirclement" in China.

However, Wang Guanxiong, an Internet watchdog, said that the adjustment of Amazon in China is not to withdraw from the Chinese market, but to focus on the business center and resources of the electricity supplier to the most competitive cross-border business, which is actually strengthening its cross border advantages.

From this point of view, the layout of Amazon's electricity supplier market in China has just started, and it may be seen as a layout to retreat in order to advance.

The lag of mode innovation is missed, and the strategic stall is worth vigilance.

The Chinese market has been highly regarded by Bezos, the founder of Amazon, who visited China twice in 2007 and was heavily interviewed by the media.

At that time, Amazon was no more than two in China, and its market share was as high as 20%.

Unfortunately, this scene has not lasted for a long time.

According to the "China online retail market data monitoring report" released by the electronic commerce research center over the years, the market share of Amazon China was 2.30%, 2.70%, 1.50%, 1.20%, 1.30% and 0.80% from 2012 to 2017; in the first half of 2018, the data dropped to 0.6%, which was over 70% in comparison with 2012.

And in the horizontal comparison with competitors, Amazon China's market share is also far lower than Tmall and Jingdong's two major domestic e-commerce platforms.

Taking the data in the first half of 2018 as an example, the market share of Tmall and Jingdong accounted for 55% and 25.2% respectively, while Amazon China ranked seventh in 0.6% market share.

Regardless of Amazon's retreat or retreat, the fact is that Amazon's share in the Chinese market has shrunk.

Cao Lei believes that Amazon's special foreign enterprise culture leads to its low efficiency in launching new projects internally, and its lagging mode innovation also makes it miss many outlets.

He pointed out that in the course of development over the years, Chinese electricity suppliers have gradually produced more and more business models adapted to the local market and widely used, such as platform electricity supplier mode, special sale mode of electricity supplier, e-commerce mode, distribution business mode, boutique electricity supplier mode and so on.

In recent years, Amazon China has missed many opportunities, lost many users and lagged behind the development of the industry.

"Strategic stall and slow pace" can be corroborated from the speed of Amazon's integration of excellent networks.

One year after the acquisition of excellent network, Amazon began to implant its database system, and the whole replacement process took three years. Until 2007, the excellent network was renamed "Amazon".

"When Amazon was first used, it provided satisfactory service delivery and high quality tonal services such as delivery on delivery, 15 days without reason to return, and at that time there were fewer platforms to choose from, and Amazon became a well deserved overlord."

Wang Dan pointed out that, but now, the user experience, Ali's Tmall Taobao in the product introduction, payment and other links more suited to the needs of Chinese users; quality and logistics, Jingdong is no worse than Amazon, Amazon has lost its past advantages.

However, despite the failure in the Chinese market, Amazon is still developing rapidly in the global market, and the market in India is more brilliant.

This means that the battleground of Amazon and Tmall, Jingdong and other domestic e-commerce platforms will be pferred to overseas markets such as India. For the latter, how to avoid taking the road to Amazon China is particularly important.

Author: Liu Minjuan