Amazon is helping Chinese businesses sell internationally and is on a mission to help them build their own globally recognized brands, though the extra competition may not go over so well with merchants in domestic markets outside China.
Amazon China executive Ye Weilun said logistics was a big challenge for Chinese manufacturers as they shifted from business-to-business to business-to-customer transactions, according to ECNS, the English-language website of China News Service. Fulfillment By Amazon (FBA) frees Chinese sellers from dealing with international storage and delivery.
The news agency referred to the Amazon Global Selling program launched in 2012 and said Amazon had unveiled additional tools last month, “such as operating platforms in Chinese on Amazon.com and Amazon.co.uk and offering “unified seller accounts” to Chinese businesses, so that they can transact on the websites of any European country after they get registered on any one of them. These services are expected to cover more countries around the globe.”
Last week, Internet Retailer quoted Amazon executive Sebastian Gunningham explaining that the company’s 109 fulfillment centers and 285 million worldwide active users gave it an advantage in helping Chinese companies expand beyond China. “We plan to increase our (ability) to facilitate Chinese manufacturers creating their own brands for global consumers.”
Indeed, Amazon revealed that overseas sales by Chinese merchants on its global sites grew 100% in the first half of 2015, much faster than the average growth in China, according to Internet Retailer.
ECNS also quoted Gunningham in its July article. “My vision is that in a year or two it will become easier for Chinese businesses to open shops on Amazon’s global sites and sell products all over the world. They just need to focus on quality, while we can help them with the difficult part like cross-nation logistics. We will keep on increasing our inputs to help China-based firms to transform from “made in China” to “brand in China.””
Gunningham said Chinese companies are ready to build their brands internationally, while markets in the US, Europe and Japan are mature enough to absorb the new brands.