The Jungle of e-Commerce: Why Amazon is Failing in China
Disciplines
Marketing
Abstract (300 words maximum)
Amazon is $768 billion etailing giant that has been hugely successful in the United States and many other international markets, but has failed to make a dent in China’s emerging e-commerce market. Its’ market share in the United States is 44% but in China it has merely a 0.9% share of the market since its entry in 2004. The dominant ecommerce player in China is Alibaba with a 51.3% share of the market. This case study describes China’s market and compares the marketing strategies of Amazon versus Alibaba. In particular, this case examines the cultural similarities and differences between the American and Chinese consumers, Chinese consumers’ distrust to foreign companies, Amazon’s target audience and Chinese consumer groups, Amazon’s distribution system in China, and different pricing options in China’s e-commerce market. The case questions help evaluate the best course of action that Amazon must take to succeed in China.
Academic department under which the project should be listed
CCOB - Marketing & Professional Sales
Primary Investigator (PI) Name
Mona Sinha
The Jungle of e-Commerce: Why Amazon is Failing in China
Amazon is $768 billion etailing giant that has been hugely successful in the United States and many other international markets, but has failed to make a dent in China’s emerging e-commerce market. Its’ market share in the United States is 44% but in China it has merely a 0.9% share of the market since its entry in 2004. The dominant ecommerce player in China is Alibaba with a 51.3% share of the market. This case study describes China’s market and compares the marketing strategies of Amazon versus Alibaba. In particular, this case examines the cultural similarities and differences between the American and Chinese consumers, Chinese consumers’ distrust to foreign companies, Amazon’s target audience and Chinese consumer groups, Amazon’s distribution system in China, and different pricing options in China’s e-commerce market. The case questions help evaluate the best course of action that Amazon must take to succeed in China.