Amazon’s latest gameplan: Pull out in China, Pan out in India
May 28, 2019

~ By Kavita Ogale

UPDATE: Amazon has stepped up its investment in India and pumped in US$402,920,000 (Rs 2,800 crore) on 7th June.

Amazon may be pulling out of China’s US$1.3 trillion e-commerce market but the game’s not up for the Seattle-based behemoth as it focuses on cross-border shopping with more and more Chinese seeking to buy branded and luxury products. E-commerce regulations in China favour this upcoming trend.

Cross-border shopping has gained relevance recently due to Chinese consumers’ growing discontent with local products whose quality and safety may be circumspect. The value of this market is rising by 15% year on year, reinforcing the fact that customers in China are willing to invest their faith in brands that promise value for money. Buying directly from the manufacturers may often prove cheaper for consumers seeking cost-effective imported deals. The assurance of buying original goods is often given more emphasis over a possible shipping delay.  Amazon will be looking to cash in on this social media-driven trend of shopping for brands that are coveted internationally.

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