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New center to extend reach of Chinese firms

By QIU QUANLIN in Guangzhou | China Daily | Updated: 2023-12-14 09:27
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The logo of Amazon is seen at the company logistics center in Lauwin-Planque, northern France, Jan 5, 2023. [Photo/Agencies]

Amazon's innovation hub in Shenzhen to help sellers achieve long-term growth
Amazon Global Selling's upcoming Asia innovation center in Shenzhen, Guangdong province, will drive innovation for both sellers in China as well as the broader Asia-Pacific region, a senior executive said.

"By supporting sellers' communication, learning and innovative practices, we aim to enhance the competitiveness of Chinese companies on the international stage," said Cindy Tai, vice-president of Amazon and head of AGS in Asia.

Tai made the remarks during the company's China seller conference, which was held in Shenzhen on Tuesday.

The company said it would set up its first innovation center in Shenzhen's Qianhai to better participate in the development of the Guangdong-Hong Kong-Macao Greater Bay Area.

"By integrating resources from Amazon, industry organizations, experts and scholars and third-party service providers, the center is expected to accelerate innovation among sellers for new product introductions, brand building, digital operations, green development and new business models, helping to tangibly improve innovation capabilities in the cross-border e-commerce sector in Asia," Tai said.

Citing a survey on sellers, which indicated that over 55 percent of the interviewed sellers ranked increasing new product development efforts as the top strategy for their business development, Tai said product innovation would be a very important means of differentiating competition and an important path for sellers to achieve long-term and sustainable development.

On Amazon, more than 35 percent of sales by Chinese sellers in the past 12 months came from new selections created within the past year, and over 60 percent from new selections created within the past 24 months.

During the conference, Amazon also announced five strategic priorities for 2024, including enabling brand owner success, simplifying global operations, optimizing the global supply chain, supporting global expansion and success, and delivering local seller success programs.

Alongside a host of innovative tools and seller service upgrades centered around these five strategic priorities, Amazon Global Selling aims to promote integrated development between cross-border e-commerce and industries, and provide high-quality export solutions for e-commerce sellers.

By the end of the third quarter, global sales on Amazon reached $554.1 billion, with Chinese sellers' business continuing to maintain steady growth, Tai said.

Citing a recent survey indicating nearly two-thirds of Chinese sellers have shown their confidence about business growth in the future, Tai said cross-border e-commerce has played an important role in global economic recovery.

"We will work closely with Chinese sellers to embark on a new path of high-quality development as cross-border e-commerce has increasingly become a new growth driver for China's foreign trade," she said.

From last October to September this year, the number of Chinese sellers on Amazon's global site, each with sales exceeding $1 million, increased by more than 25 percent year-on-year, while the number of sellers with sales reaching over $10 million for each increased by nearly 30 percent year-on-year, according to data from Amazon.

During Black Friday and Cyber Monday, two promotional shopping events in November, global consumers purchased over 1 billion items on Amazon, with many Chinese sellers achieving sales growth thanks to investments in product innovation and brand building, according to Tai.

More than 20 percent of Chinese brand sellers experienced a year-on-year increase of over 50 percent in the number of units sold for their products on Amazon's established marketplaces during the promotional events, compared to the same 11-day shopping period last year, Tai said.

"Increased sales demonstrated that Chinese sellers continue to provide products that meet the needs of global consumers. Moreover, it proved that the cross-border e-commerce industry is becoming more spacious as more new players join," she said.

Chinese sellers not only bring more innovative products but also offer more concentrated and scalable supply chain advantages, as well as a more vibrant atmosphere for innovation and growth, Tai said.

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