Amazon defeats China: it can't beat Tianmao Jingdong, and there's no double eleven that doesn't advertise.

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Amazon defeats China: it can't beat Tianmao Jingdong, and there's no double eleven that doesn't advertise.

2019-04-25 21:29:55 592 ℃

On April 17, Amazon announced that the main business e-commerce will withdraw from the Chinese market, and in the future, only two businesses, Kindle e-book and cross-border trade, will be retained in China. On July 18, 2019, Amazon confirmed that it would stop offering seller services to third-party sellers on Amazon's China website. This means that Chinese consumers will not be able to buy products from third-party sellers on Amazon platform in the future, but will still be able to purchase goods from the United States, Britain, Denmark, Japan and other places through Amazon Overseas Purchasing Platform. Afterwards, Amazon denied what the media called "withdrawing from the Chinese market". Amazon China will focus on cross-border online shopping, further deepen strategic transformation, make full use of Amazon's global resources, optimize operational efficiency, and concentrate resources to promote the rapid development of overseas purchasing business. Understandably, Amazon just shut down its third-party seller business in China and focused on overseas cross-border shopping platforms. As we all know, third-party sellers are Taobao's world in China's e-commerce platform model. Alibaba has built a link platform to "make the world have no hard business" from the beginning, so under the model of B2B2C, it is difficult for another company to compete with Taobao, Jingdong can't, let alone Amazon. However, as the world's largest e-commerce company, Amazon has not "withdrawn from China", but it is an indisputable fact that its business in China has contracted. Amazon's development in China in recent years is really very general, why foreign giants can not do China's eighth road, in Bezos'words, because Amazon in China "is not radical enough, insufficient investment, insufficient localization." But is that the real reason?

Lao Bei understands too many reasons in his mind. He does not understand Chinese culture and market characteristics, so it is difficult for Amazon to adapt to "local soil and water" in China. When Amazon entered China, it had conquered the markets of Canada, Germany, Japan and so on. In Bezos'view, the Chinese market will be a must. In 2004, Amazon purchased the then Excellent Network from Leijun for $75 million, expanding all the way and occupying an absolute share of China's e-commerce B2C market.

In 2008, Amazon's market share in China reached 15.4%. At that time, Taobao and Jingdong had not yet become climates. However, since then, Amazon's localization in China has not been smooth, not only has its market share gradually shrunk, but also has missed the wave of mobile e-commerce, which has been left behind by domestic e-commerce platforms such as Alibaba, Jingdong and Pingduoduo. Today, Amazon's e-commerce market share in China is only 0.7% squeezed by Tianmao and Jingdong. In 2014, Amazon launched its "Overseas Purchase" business and "Prime Membership" service. Users can purchase goods from overseas sites directly through Amazon China's official website, and access Amazon sites in the United States, Britain, Japan and Germany by cross-border direct mail. Overseas purchasing soon became the top priority of Amazon's core strategy in China. However, Amazon's inherent advantages in cross-border e-commerce were quickly eroded by later generations. In the same year that Amazon launched overseas purchases, Alibaba launched Tianmao International, providing domestic consumers with imports directly from overseas. Netease's cross-border e-commerce network Ekola. In March 2016, the new platform Xiaohongshu captured a large number of young consumers.

According to the observable monitoring data, China's cross-border export e-commerce transactions reached 7.9 trillion yuan in 2018. Ai Media Consulting Report shows that in 2018, NetEase Koala and Tianmao International occupied the first two places in cross-border e-commerce transactions, while Amazon was squeezed out of the top five.

strong> Chinese consumers'preferences, Amazon you do not understand

Bezos believes that the reason for Amazon's decline in China is "not radical enough, insufficient investment, insufficient localization." This is just a question of management attitude and consciousness. He realized that localization is not enough. What kind of localization is not enough? Lao Bei did not point out more specific technical issues.

First of all, it should be understood that in China, the majority of online shoppers are young people. What do these young people like? They like to be lively, unreasonable and entertaining. What do they dislike? I don't like being serious, holding up, lofty and impersonal business brands, and boring things. More importantly, the consumption habits of Chinese people are public and lively, and they have not changed for hundreds of years from the past rural market to today's online shopping festival. Under such consumer insight, smart Taobao began to make festivals. Shuangxi has become a powerful medicine for Taobao's rapid rise and rise. Shuangxi, as everyone knows, originally means Singles Day on the Internet. Choosing to make Singles Day a shopping festival on the Internet is a pioneering initiative. Taobao implies that all single dogs have the best chance to please their girlfriends on this day and are eager to get rid of loneliness. It's also possible that on this day, single dogs buy to please themselves.

double eleven became a phenomenon. Jingdong and Suning Easy-to-buy joined quickly and took advantage of the situation to share. But Amazon is not moving, it is not unusual for Amazon to participate in such explosive activities.

Double Eleven almost includes all kinds of elements that Chinese consumers like, entertainment, stars, ultra-low prices, together crazy, experience the carnival brought to consumers by consumption and material release. Chinese e-commerce, in a sense, has become a master of entertainment topic manufacturing, whether it is Taobao's Double Eleventh, Jingdong's 618, or Liu Qiangdong's stories of rich and beautiful women and sisters of milk tea.

While Chinese e-commerce is firmly grasping the eyes and consumption habits of young people, Amazon, an American, has been marginalized by itself and has been silent. It does not play with small e-commerce partners in China, nor does it find ways to attract the attention of Chinese consumers.

Amazon employees said in their veins that:"(Amazon) does not publicize, the logic does not conform to the domestic user habits, there is not enough authority and resources to go deep into the localization, the market shrinkage is inevitable." If we compare Amazon and Coca-Cola, we can find that Amazon is weak in brand marketing. In addition, Amazon did not realize the strength of Alibaba and did not make timely efforts. It pursued the strategy of not advertising, which brought a chain reaction in the competitive Chinese market. "Because the website market share is low, traffic is low, goods can not get low prices, no one can buy low prices, no one can buy no traffic, such a vicious circle." Market analysts have said.

< p style= "text-align: center"> < strong > If you can't even spell more, Amazon is really very upset

Some people say that Pindo and Amazon are completely different positioning, and there is no comparability between them. Amazon entered China in 2004, and as an international giant, it has achieved great success in the world, with rich experience in e-commerce. But Pingduo was not established until 2015. Why does Amazon, as an old driver of e-commerce, not even compete so much for its successors in China?

Don't talk about spelling too much, even small red books, tasteful meeting, strict selection and so on. They are all in a specific field, making e-commerce to the point that others can't keep up with. Comparing these Unicorn e-commerce platforms, another weakness of Amazon is exposed: its location is not clear, or Amazon does not have a clear position in China. It is one of the important factors for the success of e-commerce that

let some categories occupy the first place in consumers'minds. Beginning with the focus on "electrical appliances", Taobao focused on clothing. So, until now, when buying mobile phone digital or household appliances, e-commerce platform is still the first to be associated with Jingdong. While women consumers will still consider Taobao or merchandising when buying clothes and daily necessities, what does Amazon sell? There is no clear concept in consumers'minds.

拼多多被很多人看不起,但是,它的成功正是抓住了那些大家都不屑一顾的三四线市场的低端消费群体。 This is enough to prove that the positioning of "jiduo" is extremely accurate, otherwise it will not rise so quickly in such a short period of time. This precise positioning is precisely what Amazon lacked in its early business process.

China market is a unique market in the world. Because no other country has such a large population as China. China has a population of 1.3 billion, while the United States has only 300 million, which is a fraction of China's. These people, extending the diversity of the Chinese market, any unique positioning, facing different levels of consumers, are likely to succeed. From another point of view, the huge population in the Chinese market has produced a huge long tail effect. The consumption demand of the middle and low end, like the huge amount of plankton in the ocean, can make an e-commerce platform full of food and drink if it can meet them. And these huge consumer groups are ignored, or disdained, by giants like Amazon.

Taobao, Jingdong and Pingduo pay attention to these low and middle-end markets from beginning to end, sneak into the night with the wind, moisten things quietly, and quietly penetrate into the third and fourth-tier cities and even rural markets. Therefore, in China, there are many Taobao villages, and in more remote areas, you can also see Taobao, Jingdong, Suning E-commerce and other large and small e-commerce in rural walls left behind a variety of advertising slogans. For example, in Yanling County of Zhuzhou, Hunan Province, where mountains surround and traffic is inconvenient, a farmer planting hundreds of yellow peach trees has been able to use Taobao platform skillfully in June and July every year to sell his yellow peaches to all parts of the country. Such examples are endless. As the largest e-commerce platform, Taobao effectively links its demand to both ends, even the lowest, least noticeable and insignificant supply and demand. This is such a large number of small markets that Taobao and Amazon can overcome the foreign giant.

focusing on overseas purchases is a good positioning, but the same challenge is huge

China market is a huge cake, Amazon naturally can not give up, so when the media have interpreted Amazon's "withdrawal from China market", Amazon China rushed out to break the rumor, we did not withdraw, but only removed third-party sellers. Business, instead focusing on providing overseas purchases to Chinese consumers.

April 17, Amazon also announced that the global store "Ningbo Cross-Border E-Commerce Park" was officially put into use, and this is the third "Cross-Border E-Commerce Park" after Hangzhou and Xiamen. At the same time, it has been reported that Amazon will open stores in other cities in the future.