e-Commerce: China & the USA on the ring

Alibaba from China, Amazon from the USA, Rakuten from Japan are dominant players in the world of e-Commerce.

Alibaba is growing very fast but the group with a revenue of $1 billion in 2011 is still small compared to Amazon Inc. Revenue of the American company reached $48 billion in 2001: +41% growth year on year.

However, with the current situation, we can expect Alibaba generating more sales than Amazon from year 2017.

Amazon has a few points of market share in China. The leader is Tmall, a site from Alibaba. The second player is 360buy (less than half the sales of Tmall). Suning, Dangdang and the other players are less dominant.

@value2020 American & Chinese eCommerce – October 2012 – https://value2020.wordpress.com/

@value2020 American & Chinese eCommerce – October 2012 – https://value2020.wordpress.com/

In October 2012, while Amazon launched a page to sell wines, 360buy launched an English version of its website. This is part of the strategy of Chinese firms to expand outside of China.

Traditional retail companies are focusing on increasing online sales. With $4.9 billion, online sales of Walmart represented 10% of Amazon revenue.

The digital strategy is crucial to marketing strategy to reach potential buyers. A focus on main players is essential.

-Search engine: Google, Baidu

-Social media: Twitter, Facebook, Qzone, Sinaweibo, Youtube

If the marketing budget is enough large, you can target also the relevant other players for your brand. If you target China, Qihoo is getting attention from users right now.

It will be interesting to see the path of Tencent and Baidu in the world of e-commerce. They have powerful marketing tools with WeChat (Weixin) and Baidu analytics and advertising.

Sources:

Alibaba Group, URL: http://img.alibaba.com/images/cms/upload/alibaba_group/about_alibaba/b2b_releases/20120221_alibaba_announces_2011_q4_and_fy_results_eng.pdf

Amazon.com, URL: http://www.amazon.com/b?ie=UTF8&node=2983386011

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