Daily Digital Pulse: E-Commerce in Rural China, Amazon,
E-Commerce Goes Rural
The Internet – once known to be accessible only to a certain part of the population – is now expanding into the far reaches of China, where users are typically illiterate farmers who have never even touched a computer, let alone used one to purchase anything and everything. In Suichang County, the local government has created a project called 51ganjie, which has established web-connected service stations in 5 remote farming villages. This project is meant to help villagers buy things via the Internet, such as their daily necessities, electronics, clothing, and farming supplies. There are even plans to expand services and allow farmers to sell their produce online. Delivering to such remote regions was not economically viable before, but with integrated logistics and order consolidation, it has been made possible. Another plus is that these farmers can raise their overall standard of living from the extra income they will receive by selling the fruits of their labor online.
Amazon Launches Their Cloud Services In China
Amazon announced on December the 18th the launch of its cloud service in China. The company signed a memorandum of understanding with government authorities in order to bring its service into the country. Amazon Web Services is (AWS) is a strong company having estimated sales of over US $700 million in the fourth quarter of last year. The announcement of their arrival in China has caused Alibaba, Chinas market leader in e-commerce, to make price cuts for all its public cloud services and also set in place favorable plans for long-term clients. Microsoft is currently the only foreign provider of public cloud services in China, as restrictions to foreign companies entering are tough. Amazon is likely to face tough competition from Aliyun, which provides products more tailored to the Chinese market. The vice president of ChinaNetCenter welcomed the competition as a positive development, saying it would make Chinese service providers more competitive.
Source: Want China Times
Taobao’s ‘Star Effect’
Chinese celebrity Fan Bingbing is paying substantial dividends to the luxury brands she endorses. Fan is brand ambassador for brands such as Louis Vuitton, Cartier, Mercedez-Benz and Adidas. It was reported by Taoboa that her ‘Star Effect’ generated RMB450 million in e-commerce revenue. Taoboa demonstrated that the ‘Star Effect’ is quantifiable by releasing a list of the most lucrative brand ambassadors generating income for the site in 2013. A Chinese language report on Sina explains that Taobao shop owners closely watch Fan to find ways to capitalize on her numerous public appearances.
Source: Jing Daily