Amazon – the dominant marketplace in North America and a leader in Europe, works under the shadows of China’s dominant online retailer, Alibaba Group Holding Limited, when it comes its subsidiary in China.
14-fold increase of global brand sales
The number of international brands selling on Amazon’s China wing grew 30% in 2014, and 55 international brands that sell exclusively in the marketplace at China, grew their sales as much 17 fold in 2014, according to Amazon China’s year-end report. The Amazon China President Douglas Gurr claims that Amazon provides tens of millions of choices for global products to the Chinese consumers. He further added that in the last fiscal year, selling of international brands to the Chinese consumers at Amazon had more than 14-fold increase. He also said that Amazon China had expanded the coverage of same-day and second-day delivery services by nearly five times.
Amazon’s 10-year plans for China
Though Amazon has not named any of the brands selling exclusively at its Chinese subsidiary, the most popular brands featured on the site include fashion designers such as Rebecca Minkoff, Kate Spade, Marc Jacobs. There are also items from U.S companies such as accessories brand Latico, skin-care product maker Dermablend and shoe companies Crocs and Skechers.
Amazon China ranked No. 4 in the Chinese edition of a famous international e-retail journal, stated in its report that its focus would be selling international brands, providing quality services and worry-free delivery facilities, for the next ten years. The top global marketplace remarked that there is a growing demand for imported products, citing the fact that sales of wine from France and the United States tripled at Amazon China in 2014.
Drinking wine and remaining healthy – cause of increase in sales
Also adding the fact that this South-Asian country has, of late, been plagued by air and water pollution, the consumers are looking for more products designed to aide them in remaining healthy, claims Amazon. The sales of air-purification products increased by 50% at Amazon China in 2014 as compared to 2013. Sales of water-purification devices is also said to have doubled over the last one year.
The fastest growing product categories over Amazon China are mostly wine, Kindle e-book readers and tablets, musical instruments, pet products, food, sporting accessories and goods, shoe and health products, reported the top global marketplace. Also to be noted is the fast growing zone for the so called ‘smart’ products that connect to the Internet such as bracelets and watches and devices that connect to mobile phones via Bluetooth wireless technology and web connected devices for home. Listings of all these mentioned products grew as much as 33-fold at Amazon China in the last fiscal year.
Smaller cities, social networking sites occupy the scenario
Like Alibaba and several other leading e-commerce sites in China, Amazon pointed out that more and more sales are coming from smaller cities. Apart from the four top-tier cities, Beijing, Shanghai, Guangzhou and Shenzhen, the revenue generated is 65% on Amazon China.
The sale of mobiles and popularity of social networking sites also play a prime role in hiking the sales of products, claims Amazon China. Sales from shoppers accessing through social networks increased as much as 81% in 2014, Amazon reported.