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Amazon's China unit to get funds
www.chinaview.cn 2007-06-06 10:43:42
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    BEIJING, Jun 6 -- U.S. online retailer Amazon.com Inc said Tuesday it will increase investment in its China unit to boost sales in the world's largest Internet market after the United States, but analysts are still not convinced the firm has done enough to diversify its product range.

    Its Chinese subsidiary, Joyo.com Ltd which was renamed to Joyo Amazon.cn yesterday to enhance Amazon's brand influence in China, has been the fastest growing unit by sales among all Amazon's branches, said Jeff Bezos, Amazon's chief executive officer.

    But Bezos refused to give a specific figure on the size of investment during a press conference in Beijing, his first time in China.

    Amazon, the world's largest online retailer, acquired Joyo in 2004 for 75 million U.S. dollars.

    Since then, Joyo has introduced more product categories at a faster rate than any of Amazon's Websites, a shift from its former strategy of focusing on "a small selection of high-quality goods."

    Its product range has increased 32 times in less than three years to 400,000 products, including books, DVDs, watches, makeups, baby clothes, kitchenware and electronic gadgets.

    But analysts said Joyo still hasn't done enough in diversifying its product category.

    "It does well in delivery but customers are not quite satisfied with the range of goods it can offer," said Beijing-based consultancy Analysys International in a research note on May 29, citing its own survey.

    To improve customer experience in goods selection, Amazon said Tuesday it has introduced "My Joyo.com," a personalized tab at the top of every page based on users' purchase and browsing history.

    It also launched a free delivery service yesterday if Joyo users order more than 99 yuan (13 dollars) worth of goods.

    Joyo had 12 percent share of China's one-billion-yuan online retailing market in the first quarter, versus 18 percent for Dangdang.com.

    (Source: Shanghai Daily)

Editor: Sun Yunlong
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