In recent years, in China's e-commerce market, the parity e-commerce represented by Pinduoduo can be said to have risen strongly and become the head of the market.
1. Amazon rolled up by Temu and SHEIN
According to a report by Interface News, Amazon can't sit still in the face of low-price competition.
Jiemian News learned that at a closed-door meeting held by Amazon in Shenzhen, the new project of "low-cost store" was revealed to some sellers. This is considered by the outside world to be Amazon's counterattack against Chinese cross-border e-commerce such as Temu and SHEIN under Pinduoduo.
This meeting is a closed-door invitation system, and only some sellers and suppliers invited by Amazon can participate. An Amazon regional development manager confirmed to Jiemian News that merchants have given enthusiastic feedback to new projects in the past two days, but the initial stage of entering sellers is only internal invitation, and the regional development manager is also waiting for internal official notices.
Despite Amazon's very low profile on new projects, the giant's moves quickly generated a lot of discussion in the industry.
According to the information revealed by the participants, the low-price store will appear on the homepage of Amazon's main station in the mode of "shop-in-store" - that is, an independent section entrance of the "low-cost store" is set up on the homepage of Amazon, the underlying technical framework is the same as the main site, but the presentation of the page will be different, and the background management of suppliers is also common to the main site. The new program will open for registration this summer and will accept warehousing in the fall of 2024.
Amazon describes the new low-price program as a store that specializes in providing users with white-label, low-priced fashion, home and lifestyle products. It's hard not to think of the positioning of competitors Temu and SHEIN, which are also known for their low-cost clothing and department store items.
According to the reporter's understanding, Amazon's first open categories are limited to fashion, home furnishing, and life categories, and other categories may be gradually opened in the future.
Second, Amazon also wants to do low-cost e-commerce?
With the acceleration of the internationalization of Chinese e-commerce enterprises, domestic e-commerce platforms that have experienced fierce competition have begun to show their strong competitiveness and cost-effective advantages on the international stage. This phenomenon has not only changed the pattern of China's e-commerce, but also has a profound impact on the global e-commerce market. In particular, the rapid rise of Chinese cross-border e-commerce platforms such as Temu and SHEIN has begun to pose a challenge to traditional e-commerce giants like Amazon.
First of all, Chinese e-commerce companies have accumulated rich operational experience and technical capabilities after experiencing fierce competition in the domestic market. They have taken advantage of their price advantages and flexible market strategies to rapidly expand in the global market. Platforms such as Temu and SHEIN have won the favor of a large number of overseas consumers with their efficient supply chain management, fast logistics and distribution, and attractive price strategies. The success of these platforms lies not only in the fact that they offer low-priced goods, but also in their ability to quickly adapt to the needs of different markets, offering personalized and diverse products.
Secondly, Amazon has long been a leader in the e-commerce market in the United States and even in the world, and has won the trust of consumers with its huge product variety, Prime membership service and strong logistics system. But the competitive pressure is increasing. The rise of emerging cross-border e-commerce platforms such as Temu and SHEIN, especially among young consumer groups, has forced Amazon to re-examine its market positioning and strategic layout. The data shows that the number of users of Temu and SHEIN is gradually approaching Amazon, which poses a substantial threat to Amazon.
Third, in the face of Temu's strong impact, Amazon launched a new low-price store, which is a forced counterattack strategy. However, Amazon did not simply imitate the model of its rivals, but innovated in specific operating models. For example, Amazon allows sellers to have a certain amount of pricing power, which can better motivate sellers and maintain the competitiveness of the platform. In this way, Amazon is trying to maintain its brand image while also being able to offer more competitive prices.
Fourth, in the long run, the fierce competition between e-commerce companies will ultimately benefit consumers. With the competition between platforms such as Amazon, Temu and SHEIN, the price of goods in the market is expected to be further reduced, and the service quality and shopping experience will also be improved. The addition of Amazon means that the global e-commerce market is gradually adopting the successful experience of Chinese e-commerce, such as rapid iteration, big data analysis, social e-commerce and other innovative models, which will undoubtedly promote the development of the entire industry.