Challenges for Amazon to Grow in Asia

Challenges for Amazon to grow in Singapore and other Asian countries

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Are there Challenges for Amazon in Asia? It is a big question, which has created hype in the global retail market. Amazon, despite experiencing its financial peak, faces some changes in Asian regions, primarily when operating in China, Singapore, India, and many other countries. Many challenges have triggered Amazon Southeast Asia business due to the interventions of other rivals. Alibaba and Ali express are two e-commerce giants in these regions, which put the company backward in terms of sales and positioning.

In Singapore, people like to shop in air-conditioned malls. It seems a typical buying behavior, which creates some hurdles for this e-commerce giant. Apart from it, Amazon is struggling to maintain efficiency in the delivery process. Local rivals such as Alibaba and others are quicker.

E-Commence Asia is quite different, and Amazon has to understand it. In South Asia, the business expansion of retail stores has been increased. People have access to retail stores and supermarkets. The transition from brick & mortar model to online business is still limited, and Amazon is even finding the way to convert customers.

Amazon’s international expansion is in the limelight, as it aims to grab an immense range of customers. In Singapore, Amazon’s entry seems pertinent due to increasing shopping trends. Amazon expanded or entered this country, as it is a mature retail market in Asia.. Amazon just ceded China due to the significant growth of Alibaba and JD.com. Now, the focus of the company is on India, which has also been emerged as a potential market.

Launching the Amazon prime services in many countries, including Singapore, is a big decision. This e-commerce giant has covered almost 50 countries. Nevertheless, the big challenge for the company is lack of customer response. Of course, customer response is beyond expectations, and it is creating hurdles in terms of limited revenues, sales, and profitability.

Amazon Singapore’s performance seems moderate, as 2 % or fewer customers use the Amazon platform to purchase. Amazon is generating revenues from outside business activities, and a recent decline in sales is a big concern. From 2017 to 2019, the decline in sales or purchases is quite evident. Therefore, Amazon’s international expansion has been rationalized. However, Singapore and many other Asian countries are different in terms of buying behavior, trends, and patterns.

Challenges for Amazon

Amazon’s marketing strategy in Singapore looks ineffective as compared to other local rivals so there are many Challenges for Amazon in Asian markets. For Instance, product placement is critical in this market, which can change customer behavior and intentions. Great regional rival “Lazada” pulled the company backward by placing almost 30 million products compared to 10 thousand via prime. Product placement is a crucial part of the marketing strategy, which can make the company visible and relevant. With more products, Amazon can get the customer’s attention. Local rivals are significant threats, and counter-marketing strategy is needed to make the difference.

Why did Amazon fail in Singapore? What were  challenges for Amazon in Singapore? These are the big questions to be asked from Amazon management. The management has to understand that this market needs different strategies.  With the same business model or e-commerce platform, it is tougher to make a difference.

Recently, Amazon has come up with a new e-commerce platform for the Singapore market, and probably, it can be applied in other Asian countries, Ecommerce platform for the Singapore market, and probably, it can be applied in other Asian countries.

Asian markets are different than USA and western markets so every company must be carefull before entering in these markets by strategic and busines point of views.

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  1. Rana Shakoor Akbar says

    Very nice and interesting article about Amazon difficulties to enter and grow in Asian markets.

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