Amazon’s Strategy in China
Amazon.Com Inc (AMZN) is stepping up its efforts to attract more sellers in China amid fierce competition from local rivals like PDD Holdings Inc’s Temu, Alibaba Group Holding Limited (BABA), and JD.com, Inc (JD).
Recruitment Events and Expansion
Recently, Amazon hosted an event in Shenzhen, Guangdong province, to provide support for online sellers aiming for global markets. Despite reducing its consumer-focused operations in China, Amazon is focusing on cultivating sellers for global expansion.
Strategic Offices and Events
In 2024, Amazon established offices in Wuhan, Hubei province, and Zhengzhou, Henan province, to assist sellers in adjacent regions. The company plans to host multiple events for thousands of sellers in the coming year.
Price Competitiveness and Competitive Landscape
Amazon is working on mechanisms to offer Chinese products in the U.S. at competitive prices, concerned about its diminishing market share in the U.S. market. The move comes in response to the growing popularity of low-cost e-commerce platforms like Temu and Shein.
Market Dynamics and Competition
Alibaba’s dominant position in the Chinese e-commerce market, capturing a 46% market share in 2023, reflects the intense competition in the sector. JD.com follows with a GMV share of 27.2%, as per Statista.
Outlook and Stock Performance
Despite challenges, Amazon’s stock showed resilience, trading higher by 1.01% at $164.40 premarket. The company’s strategic maneuvers in China aim to bolster its global competitiveness and market presence.
