Retailing, Franchising, and Consumerism Business Intelligence in China

American Internet Retailer Rebrands For China

Amazon has announced that its brand name Joyo Amazon has been formally changed to Amazon China and it will launch a shorter domain name for its Chinese website to fully embrace its global identity.

Amazon revealed the news during the launch ceremony of its new operating center in Kunshan. With an operating area of 120,000 square meters, the new center is reportedly the largest e-commerce operating center in China.

According to Marc Onetto, global senior vice president of Amazon, so far the company has established ten operating centers in Chinese cities, including Beijing, Chengdu, Shenyang, Guangzhou, Xi'an, Wuhan, Xiamen, and Kunshan. Onetto also revealed that the total area of Amazon's operating centers in North America is 1.47 million square meters, and the area in other countries is 960,000 square meters, including 400,000 square meters in China.

Amazon entered the Chinese market by acquiring the local e-commerce website Joyo in 2004 and had been labeled Joyo Amazon in China ever since. Wang Hanhua, president for Joyo Amazon, said that rebranding as Amazon China is an important step for the localization of the company. It represents Amazon's confidence in the Chinese market, and its investment in China will continue to increase in the future.

Onetto said in the future, Amazon will enhance its localization in China and increase its capital and labor investments in the country. At the same time, he said the company faces larger challenges in China than in other countries, because it has higher requirements for operating network and distribution. He revealed that currently Amazon provides cash on delivery services in 1,500 cities in China; it accepts payments via POS in 50 cities; and it has its own distribution teams in nine cities.

In addition, Amazon announced that it has launched a shorter Chinese domain name, which is re-directed to Amazon's Chinese official website

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