One of those questions that is given as one of the great truths of our time is that Amazon is the great giant of global electronic commerce and that what it does and that the way in which it occurs has an impact that is impossible to escape. The sectors that have been falling under its influence and for which Amazon has become a disrupting element are many. The books were the first to see how Amazon modified the market and changed the state of things, but they were only an outpost of what was expected for the near future. Since then, Amazon has touched everything, including already, or at least that is expected, the online advertising market.
But is Amazon as infallible as it was taken for granted or are some people already playing with weapons strong enough to have an impact on what they do and their position in the market? Amazon may already have found its stone in the road and that stone may be the great Chinese giants of electronic commerce.
Amazon will close in China
Amazon just throw in the towel in the Chinese market. The giant has just announced that it will close the local sales of its Chinese version. This does not exactly mean that Amazon China closes, but it will in essence. Instead of having an infrastructure in the country focused on Chinese products and with a marketplace of local vendors, Amazon will sell from other countries. When a Chinese consumer accesses their version of Amazon, they can only buy products imported from Amazon stores in other countries, from Amazon Germany to Amazon Japan.
Amazon has pointed out that they have made an evolution in China so far to strengthen the cross-border market and that this supports the movement. But, as you remember in the New York Times, the data from Amazon in China is not to shoot rockets. Sales in the Chinese market are so low that you do not even have to break them down in your financial results.
And Amazon did want China. His entry into the market is as distant as in 2004, when he bought an online bookstore in the country that was very popular, and settled in 2011, when he rebranding to be openly Amazon China. But since then and until now it has not finished curdling with the market of this Asian country. As noted in the Times, has not adapted to the characteristics of the market, has not known how to play with its key element in ecommerce (the price) and has not been able to position itself before the very strong local competitors. It has never managed to move the Chinese giants of e-commerce.
What it says about the Chinese ecommerce giants
And, in fact, you could say that this movement is not only a demonstration of the state of affairs for Amazon, but also one of the strengths of the Chinese e-commerce giants, JD.com and, above all, Alibaba.
These two giants are the ones that dominate the Chinese e-commerce market and those who are already trying to settle as the big platforms to access from that country to the global products that Amazon has left as luck of consolation prize for the minimum version of its ecommerce Chinese. The Times recalls that JD.com sells products from Walmart, the American hypermarket giant, but more examples could be added. One of the key points of the agreement that Alibaba and El Corte Inglés signed a few weeks ago was that Alibaba would sell the giant’s Spanish products (their white brands) in China.
In addition, Alibaba and JD.com have been able to offer many more products in the Chinese market and to bring them much faster to their consumers than Amazon does. Although shipments are one of the strengths of the giant in other countries, in China it was beginning to resent even the impact of much smaller and emerging players.
If you add that your marketing strategy in China has not been as prominent as these two giants as analysts remember, Alibaba has managed to invent one day and make it one of the great dates of consumption, the day of the Singles. You have the complete situation.
Very strong players
The victory for the Chinese e-commerce giants is local, but the impact that this Amazon movement has goes much further. Although it only matters in the local market, with the Amazon movement it is confirming the vitality of these e-commerce giants. Which can indirectly imply a blow of confidence and, above all, reinforce that image that they are elements to take into account .
For Alibaba, which has gone to the conquest of the global market and is trying to settle in Europe. AliExpress, Alibaba, is already the second most visited ecommerce in Spain, for example, only surpassed by Amazon. Could be one of those issues that indirectly they reinforce their image.