Amazon: Out of its Prime in China
Disciplines
Business Administration, Management, and Operations | E-Commerce | International Business | Marketing
Abstract (300 words maximum)
Amazon: Out of its Prime in China - An International Marketing Case Study
Andie Glover, Jessica Golden, Madison Floyd, Austin Masenthin, Don Kim, Ryan Hunter, Conner Hogan
Abstract
Amazon, a billion dollar global online shopping company in many countries including the US and Europe. However, despite its global success and domination of the e-commerce industry, Amazon has struggled to succeed in China. Amazon entered China in 2004 by buying out a local book-selling business Joyo for $75 million, but faced a slew of challenges: slowing Chinese economy, growing Chinese nationalism due to the US-China trade war, and battling a well established competition with Alibaba and JD.com. Alibaba and JD.com operate faster and more efficiently and control 61.5% of the market share in China growing rapidly with an estimated growth rate of 50%. In 2019 Amazon’s revenue in China was $87.4 billion compared to Alibaba's $23.2 billion (Richter, 2020). Amazon’s strategy did not align with the Chinese consumers’ demand for higher quality products and larger discounts on products. Amazon announced that it would no longer operate a third-party marketplace or provide seller services in China but will continue to have a smaller presence there. This case examines economic, socio-cultural and competitive conditions to suggest changes that Amazon would need to make in its marketing strategy in order to succeed in China.
Keywords: Amazon, China, e-commerce, case study, nationalism, etailing, Alibaba, JD.com, emerging markets, international marketing strategy
Note: References available on request
Academic department under which the project should be listed
CCOB - Marketing & Professional Sales
Primary Investigator (PI) Name
Dr. Mona Sinha
Amazon: Out of its Prime in China
Amazon: Out of its Prime in China - An International Marketing Case Study
Andie Glover, Jessica Golden, Madison Floyd, Austin Masenthin, Don Kim, Ryan Hunter, Conner Hogan
Abstract
Amazon, a billion dollar global online shopping company in many countries including the US and Europe. However, despite its global success and domination of the e-commerce industry, Amazon has struggled to succeed in China. Amazon entered China in 2004 by buying out a local book-selling business Joyo for $75 million, but faced a slew of challenges: slowing Chinese economy, growing Chinese nationalism due to the US-China trade war, and battling a well established competition with Alibaba and JD.com. Alibaba and JD.com operate faster and more efficiently and control 61.5% of the market share in China growing rapidly with an estimated growth rate of 50%. In 2019 Amazon’s revenue in China was $87.4 billion compared to Alibaba's $23.2 billion (Richter, 2020). Amazon’s strategy did not align with the Chinese consumers’ demand for higher quality products and larger discounts on products. Amazon announced that it would no longer operate a third-party marketplace or provide seller services in China but will continue to have a smaller presence there. This case examines economic, socio-cultural and competitive conditions to suggest changes that Amazon would need to make in its marketing strategy in order to succeed in China.
Keywords: Amazon, China, e-commerce, case study, nationalism, etailing, Alibaba, JD.com, emerging markets, international marketing strategy
Note: References available on request