Yes, Amazon Prime launched in China. Here’s why it’s not a big deal.

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Last week, Amazon finally launched its Prime subscription service in China. Prime is a big deal in Amazon’s home market (the US), but it’s not likely to make much of a splash in China. In fact, although the launch got headlines throughout the Western media last week, it didn’t make much of a dent in China.

Why? Here are a couple reasons.

1. This chart

This data is from Statista; other estimates vary slightly but there’s no denying the overarching truth: Amazon is a bit player in China. Prime is a big deal in the US, but that’s because Amazon controls nearly 70 percent of the US market, so it already has a huge customer base interested in shipping deals and other perks. That’s simply not true in China.

Amazon knows this, of course, and the version of Prime that Amazon is launching in China is aimed at moving that needle by offering free shipping on some international goods in the hopes of attracting more globally-savvy shoppers. But even that is going to be an uphill battle, as domestic competitors like JD already offer global deals to Chinese shoppers, and they have a much larger base of established customers.

2. No streaming content

Amazon Prime may be offering free international shipping in China (on some kinds of items), but that’s about all. The US version of the service also gives customers access to Amazon’s robust library of streaming music and video (which includes some excellent original programming), but Prime in China won’t include either. It’s also cheaper, of course – US$28 for the first year and US$57 thereafter – but considering the difference in the standard of living between the US and China, the Chinese version doesn’t offer anything near the same value for money.

Again, Amazon is aware of this, but its hands are likely tied by Chinese regulators. There are strict rules for operating streaming platforms in China, and the relevant licenses are extremely difficult (or impossible) for foreign companies to acquire. Even Netflix has abandoned its plans for a China launch. China’s Amazon Prime isn’t likely to be able to offer the perks its American counterpart does anytime soon.

In short: Amazon Prime’s China launch is an interesting move that, if all goes well, could help Amazon grab a slightly larger share of China’s growing cross-border ecommerce market. But it’s not a major shift, or likely even a noticeable one, for the vast majority of China’s online shoppers. Most of them likely won’t even hear about Prime, and those that do aren’t likely to find it worthwhile unless they do a ton of shopping for the imported goods Amazon’s offering with free shipping.

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from Tech in Asia https://www.techinasia.com/amazon-prime-launched-china-cares
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