In the case of Amazon, the conditions of the online retail market are considered. As the largest firm in the market, the company enjoys the benefits of high revenues and a popular set of online services.
Given the current status of the e-book market in China, the outlook for both the Kindle and its e-bookstore seems full of challenges. In China, the paid e-book market features a limited reader base and lacks quality electronic book content.
Given the ongoing problem of rampant piracy of digital content Chinese consumers have not yet grown accustomed to paying for digital content. Though China has more than million Internet users, it is unclear just how many Chinese netizens are willing to pay for e-books, while the price that they are willing to pay remains up for question.
To figure this out, Duokan embarked on a test sale of 17 e-books in the Apple store in Januaryfinding that the best-performing of the 17 sold just 8, copies in six months.
Negotiating with traditional publishers will not be easy for Amazon. Compared to traditional book-selling in China, the e-book business is not so attractive for traditional publishers. This is because the cost of producing high-quality e-books is high while profit from e-books selling are low given the limited buyer base.
More importantly, concern about Internet piracy of e-book content in particular makes traditional publishers in China feel cautious and hesitant to enter the market. The local incumbent In addition, fierce competition from local player Dangdang also poses significant challenges for Amazon.
As an early pioneer of selling books online, Dangdang took the lead in terms of collaborating with Chinese publishers. Even Chinese e-commerce giant JD originally buy cannot compete with Dangdang on the sourcing books from traditional publishers.
To make up for the deficiency and compete, JD adopted a strategy of buying copyright directly from the writers themselves. Bearing all of this in mind, Amazon still has a lot of challenges to overcome before launching Kindle devices in China. The priority for the company should be to develop partnerships with local Chinese publishers and solve the content issues.Search Largest China Supplier Base.
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