Amazon comes to the Free Trade Zone in China
American online retailer Amazon plans to attract more business users from China through a new agreement which would allow the company to begin to trade millions of Chinese "white" goods. On Wednesday, Amazon announced an agreement with the newly established Free Trade Zone of Shanghai, which allows you to establish and maintain a "cross-boundary e-commerce platform." Here Amazon imported goods will be imported and stored. Here Amazon intends to build a logistics center and a large warehouse.
As a downside, Amazon will open the American market for ecommerce-official Chinese producers. Free Trade Zone in Shanghai - a kind of gateway for easy import of foreign goods, as well as the place of the simplified export of Chinese commercial production under the protection of foreign (official) residents. Previously, Microsoft took advantage of a free trade area for the import into China of new gaming consoles Xbox One.
As for Amazon, in the United States, the company is actually a synonym for electronic shopping, but in China it is absolutely not true. Here consumers prefer local TaoBao, Alibaba and others. For comparison, in the first quarter of this year, Amazon's share of China was 2.9%, against 49% in the service Tmall, owned by Alibaba. And this despite the fact that Amazon is working in China for 10 years (up to Alibaba).
Now Amazon are betting on the work with the residents of major Chinese cities that are already being used by Western goods and eager to purchase fashion brands and accessories from Europe and the USA. The company also said that even in the United States is a big enough niche buyers who do not have the craving for brands, but willing to buy Chinese "white" products, which are priced several times cheaper than Europe and North America.
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