The U.S. e-commerce giant Amazon.com, Inc. sees big opportunities in China, where the e-commerce market is expected to reach $1.21 trillion by 2017. Amazon recently launched a Chinese-language version of its Japanese e-commerce website Amazon.co.jp. The move is part of the company’s plans to attract Chinese internet buyers looking for authentic Made-in-Japan products.
Amazon Chinese-Language Site
The latest numbers from Japan’s Ministry of Economy, Trade and Industry show that demand for Japanese goods from China is expected to triple to nearly $ 25 billion by 2019. “The opportunity is huge,” said Jasper Cheung, president of Amazon Japan. “We have already increased the selection that we can export by the millions over the last several weeks.”
Amazon plans to focus on consumers who prefer to purchase even daily need items such as baby food and toothpastes manufactured in Japan, according to an article published on Forbes. There is a high demand for Japanese products such as baby food, health products and high quality apparel among Chinese consumers. In addition to launching a Chinese language version of its Japanese e-commerce website, the online retailer has also reduced shipping rates for China on its Japanese e-commerce website.
India Key Priority in Asia Pacific
The e-commerce market in Asia Pacific is expected to grow in the next few year, and China will play a significant contributor to this growth. eMarketer estimates that e-commerce sales in the region will jump to $ 1.46 trillion by 2019, contributing to over three-fourths of the global e-commerce growth of $1.91 trillion. The retail e-commerce sales in China are expected to be nearly 35% by 2019.
For Amazon.com, Inc. , India is a key priority in the region. Recently, the company launched its Prime membership program in more than 100 cities in India. The program offers unlimited free one-day and two-day delivery on millions of products to Indian consumers. The company also opened its largest fulfillment center in India. Located in Sonipat near the Indian capital city, New Delhi, the fulfillment center has a storage capacity of over 800,000 cubic feet, and supports thousands of small and medium businesses.
As we reported earlier, the U.S. tech giant plans to invest up to $3 billion to expand its operations in India, where the e-commerce market is estimated to be worth $119 billion by 2020. In 2014, Amazon announced plans to invest $2 billion in India. In June, CEO Jeff Bezos said in Washington that the company will spend additional $3 billion in the country, bringing the total investment to $5 billion. The company has more than 40,000 employees in India.
Bezos said that the company’s performance is “surpassing even our most ambitious planned milestones” in India. The online retailer wants more small businesses in India to use its platform to sell, and it is investing money to encourage more people to online business.
In a letter to shareholders, Bezos said that Amazon is working to promote e-commerce in India. The company Amazon Tatkal, which enables small businesses to get online in less than 60 minutes.
The company’s stock has been performing well. Shares of Amazon.com, Inc. have gained 11.42% year-to-date and 43.2% during the past 12 months.