Welcome! Tuesday - Jul 25, 2017

Amazon China Capitalizes on the Rise of Cross-Border E-Commerce


amazon china

 

Observer Solutions believes that the rising model of cross-border e-tailing via direct mail is a perfect channel for small and medium sized brands to test out the Chinese consumer market. Direct mailing services like Amazon’s HaiWaiGou could bring global supply chain disruptions for many large brands, especially those who have already had operations in China. However, for small and medium sized brands that lack resources, brand recognition, or market knowledge in China – leveraging services provided by Amazon’s HaiWaiGou and many other Chinese commerce firms could be an agile strategy to dip a toe into the market, and test out the market without heavy investment.

 

As Chinese shop internationally Amazon expands its overseas offering aggressively

 

As cross-border e-commerce gains momentum in the last year, Amazon China’s “HaiWaiGou” store, which was only launched less than four months ago (it ships purchases directly from overseas to the homes of Chinese consumers) is aggressively broadening its brand offering as well as expanding categories of available products.

2015 is only just beginning and Amazon China’s HaiWaiGou store is already rapidly expanding brand offerings in its shoes and accessories departments. It was reported that HaiWaiGou has made new products available from more than 400 renowned international brands including Haggar, Calvin Klein, Dockers, Rockport, Clarks, Cole Haan, Perry Ellis, TUMI, and many others.

Last week, the store introduced a new series of designer and luxury bag brands from the United States, Canada, Switzerland and beyond. Brands include Rebecca Minkoff, Marc by Marc Jacobs, Kate Spade New York, Cole Haan, and others.  

This Tuesday, Amazon China announced that before the Spring Festival, its HaiWaiGou store will expand it offering to American and German branded kitchen utensils. In addition, it will also offer more imported alcoholic beverages and foods, including product lines from 11 Australian wine brands.

Amazon China nearly tripled the number of brands available for international delivery since last year. 

Observer Solutions believes that the rising model of cross-border e-tailing via direct mail is a perfect channel for small and medium sized brands to test out the Chinese consumer market. Direct mailing services like Amazon’s HaiWaiGou could bring global supply chain disruptions for many large brands, especially those who have already had operations in China. However, for small and medium sized brands that lack resources, brand recognition, or market knowledge in China – leveraging services provided by Amazon’s HaiWaiGou and many other Chinese commerce firms could be an agile strategy to dip a toe into the market, and test out the market without heavy investment. 

 

By Luke Dodds, Julia Zhu.

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