Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

Amazon to Pull Plug on China Retail Operations as it Faces Entrenched Rivals

The US e-commerce pioneer will maintain other operations in China such as Amazon Web Services (AWS), Kindle e-books and cross-border teams that help ship goods from Chinese merchants to customers abroad.

AFP

Updated:April 18, 2019, 1:16 PM IST
facebookTwitterskypewhatsapp
Amazon to Pull Plug on China Retail Operations as it Faces Entrenched Rivals
Amazon logo. Image used for representational purpose. (Photo: AFP)

Shanghai; Amazon plans to close down its online retail operations that cater to consumers in China in an apparent admission of defeat to local e-commerce rivals such as Alibaba and JD.com, a report said on Thursday.

The US e-commerce pioneer will maintain other operations in China such as Amazon Web Services (AWS), Kindle e-books and cross-border teams that help ship goods from Chinese merchants to customers abroad, Bloomberg News said, citing unidentified people familiar with the plans.

Beginning on July 18, the company's Chinese website, Amazon.cn, will featured only diminished offerings sourced from its global network, the report said.

An Amazon spokesperson did not explicitly confirm plans to throw in the towel on domestic e-commerce, but said the company was looking to focus more on cross-border sales.

"Over the past few years, we have been evolving our China online retail business to increasingly emphasise cross-border sales, and in return we've seen a very strong response from Chinese customers," the spokesperson said in a statement emailed to AFP.

The company was making "operational adjustments to focus our efforts on cross-border sales in China", the statement said.

Founded by Jeff Bezos 25 years ago, Amazon in January became the world's biggest publicly traded company by market value and dominates in the United States and other markets.

E-commerce is just as popular with consumers in China -- if not more -- than it is in the United States, due to cheap delivery costs and a less-developed bricks-and-mortar retail landscape.

But Amazon has struggled to make headway in China, where a host of nimble rivals led by Alibaba and JD.com have capitalised on domestic supplier networks and a deeper understanding of Chinese consumers to gobble up market share before Amazon could gain a foothold.

Amazon has tried to make a go of it on China retail, investing in logistics and acquiring Chinese online book seller Joyo in 2004.

But it has barely made a dent.

The firm occupied just 0.6 percent of Chinese business-to-consumer online retail in the fourth quarter of 2018, with Alibaba's Tmall taking 61.5 percent, and JD.com 24.2 percent, according to China-based Internet consultancy Analysys.

Li Chengdong, founder of the Beijing-based internet financial research house Dolphin Think Tank, said Amazon was hurt by not adapting to what works in China.

"Amazon has been unwilling to localise in China, which feels kind of arrogant," Li said.

"They still insist on American-style web pages and do not promote merchandise during the 'Double 11' shopping season, in which Chinese e-commerce companies Alibaba and JD put a lot of effort."

"Double 11", also called "Singles' Day" refers to an annual shopping extravaganza that takes place each November 11 and in which tens of billions of dollars worth of merchandise is bought, in China's answer to the US "Black Friday" shopping day.

The Amazon statement said that "we will continue to invest and grow in China across Amazon Global Store, Global Selling, AWS, Kindle devices and content".

Bloomberg News called the move the latest sign that Amazon, due to the difficulty competing with Chinese rivals, would focus its overseas attention on India's growing market.

Amazon opened an India website in 2013 and has invested heavily in logistical infrastructure.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 51.40 8.44
Reliance 1,416.35 1.42
Indiabulls Hsg 231.20 16.80
Zee Entertain 250.20 -5.39
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
HDFC AMC 2,882.20 6.11
Yes Bank 51.40 8.44
Indiabulls Hsg 231.50 17.42
Reliance 1,415.30 1.37
IRCTC 779.20 7.57
Top Gainers
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.28
Adani Ports 421.70 3.07
Grasim 746.50 3.03
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.31
Maruti Suzuki 7,318.15 2.74
Power Grid Corp 202.55 2.45
NTPC 121.00 2.02
Top Losers
Company Price Change %Gain
Zee Entertain 250.20 -5.39
Tata Motors 136.85 -1.90
Eicher Motors 20,275.90 -1.05
Bajaj Auto 3,087.05 -0.79
Hindalco 187.40 -0.74
Company Price Change %Gain
Tata Motors 136.70 -1.05
Bajaj Auto 3,087.75 -0.73
Bharti Airtel 383.25 -0.65
ICICI Bank 437.75 -0.64
Axis Bank 709.20 -0.19

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results