Amazon positioned as one of the companies dedicated to electronic commerceónico más successful worldwide announcedó his withdrawal from China.
It should be noted that although Amazon is headquartered in Seattle, USA, “has managed to establish completely independent websites for many markets in which it isá present around the world.” (Urban, s.f)
From 2004 this was the case in china, país in which Amazon held a stakeón active in the market to date.
Nevertheless, Various factors related to a decrease in productivity led to the decisionóNo withdrawal from the Chinese market.
Reasons why Amazon is pulling out of China
One of the inter marketsés for companies dedicated to electronic commerceóunique due to the dizzying rate of growth and projectionón is chinese, but Amazon could notó position or meet expectations.
The factors that led to the organizationón decide to focus on other markets and decline the aspirations that were initially focused on the Chinese market.
Among the reasons driving the decisionón withdrawal by Amazon, the following stand out:
Low productivity.
Undoubtedly, performance and profits are the fundamental engines on which any for-profit business relies.
In the specific caseífrom Amazon in China, although it is true that it arrivedó to achieve important productivity levels, over time this did not remain a constant.
Regarding market behavior, “Amazon leggó to have 16% to participateón in Internet commerce activities.” (Silvano, 2019)
This trend did not lastó and in 2018 “the participationóAmazon's number within China's domestic market felló up to 1%.” (Silvano, 2019)
High level of competitiveness
One of the main challengesíthose with whom he facedó Amazon in China was with the companies that stand out as its main competitors.
mayíto affirm that the Chinese market has been conquered by two (2) e-commerce giantsóunique as Tmall.com, Alibaba and JD.com, who control around the 82% of the fee.
The figures of toñO 2018, for instance, locate Tmall.com, Amazon's main competitor in China, with a 61,5% of presence within the sales market in theínea, the second place is occupied by JD.com which represents the 24,2% and Amazon occupiedó sixth place with 0,6%.
Consumer preferences
One of the factors that determine the ésuccess of an organizationón is the ability to influence the tastes and preferences of consumers.
In the case of Amazon in China, one of the disadvantages was relatedó with the non-adequacyón from the web to the local consumer.
Conversely, the architecture of páThe page was kept similar to the one offered to users in the United States, where people grant más valor a lo simple. (I, 2019)
Platforms like those of Alibaba offer users a better experience with a representative number of ads and a compositionóNo flashy colors. (I, 2019)
In conclusionón, One of Amazon's weaknesses in China was its poor adaptability to particular market conditions.
Además, the absence of strategies with the intentionón to increment the núnumber of customers by bringing you more convenience such as Alipay, payment system created by Alibaba, así like the slowness in the envícompared themón other companies put Amazon at a disadvantage in the Chinese market.
References
I, M. (2019). ¿Whyé Amazon pulls out of China? Taken from www.dw.com
Silvano, H, D, WITH. (2019) ¿Whyé Amazon pulls out of China? Laboratory of Studies on Transnational Companies. Taken from let.iiec.unam.mx
Urban, M, S, M. (s.f). ¿Whaté is Amazon? ActualidadeCommerce. Taken from www.actualidadecommerce.com
