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Staging a Comeback.doc
Staging a Comeback
Yan Yan, an art teacher in her 30s living in Hefei, east China’s Anhui Province, recently bought a pair of Asics running shoes from online retailer Amazon’s U.S. site. “It’s the discount season in the United States. The shoes only cost me $94.99 plus a $10 charge for shipping and handling,” she said. The same pair of shoes is sold at around 1,200 yuan ($193) in China. Yan also made purchases for her child from Amazon.
Yan is among a fast-growing number of Chinese online shoppers, most of whom are young, well-educated and eager to buy foreign brand products that are unavailable or more expensive in China. Baby products, footwear and apparel are their favorites. Amazon’s global sites are often their preferred platforms for shopping. “I trust the good quality and authenticity of things bought from Amazon,” Yan said.
According to consulting company Analysys International, imports in China’s online shopping market exceeded 80 billion yuan ($13 billion) in 2013, up 75.2 percent from the previous year, and could exceed 120 billion yuan ($19 billion) in 2014. Statistics also show that 50 percent of the overseas purchasing orders made by Chinese online shoppers in 2013-14 took place on Amazon’s U.S. site, which, along with five other Amazon global sites, have provided direct shipping service to China since last November.
However, the U.S.-based multinational e-commerce giant, despite its 11-year presence in China, has yet to grab a significant share in the country’s sizzling e-commerce market. According to data from Analysys International, the transaction value of China’s business-to-customer (B2C) market reached 1.37 trillion yuan ($220 billion) in 2014, soaring 65 percent year on year. Although Amazon ranks fifth among all online retailers, it only gained a tiny market share of 1.8 percent, compared to the 54.6 percent Tmall. com, Alibaba’s B2C platform, had and 17.7 percent claimed by JD.com.
Stronger presence
According to a repor
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