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Amazon taps Chengdu operation center
June 6, 2013, Thursday
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US e-commerce giant Amazon kicked off its operation center in Chengdu in March. Phase I of the center, located in the Tianfu New Area of Chengdu, signals Amazon China's commitment to enlarging its presence in western China.
China has an Internet population of more than 500 million, and an increasing number of people are buying from online sites because of cheaper prices and fast delivery.
Amazon China's Chengdu operation center covers 50,000 square meters and will be expanded to 200,000 square meters when completed.
The Chengdu center brings to 15 the number of such operations facilities in China, covering an aggregate 700,000 square meters.
China's online retail sales totaled 1.2 trillion yuan (US$194 billion) in 2012, and the market is expected to grow in coming years, especially in inland areas.
In the first quarter of this year, 24 Chengdu-based online shopping sites reported sales of 7.93 billion yuan.
Online retailing offers an array of products that often go beyond what is available in traditional supermarkets and department stores.
According to the city's e-commerce industry segment of the 12th Five-Year Plan, mobile payment centers and application centers will be set up in the Tianfu New Area.
Zhang Jiantao, vice president of Amazon China, talked about why the company chose to open an operation center in Chengdu and how it will integrate with the broader network in China.
Why did Amazon China chose Chengdu to locate its operation center? What factors did you consider in making the decision?
The domestic online shopping market is growing at a very rapid pace. China has become one of Amazon's most important markets, both in terms of number of shoppers and in terms of money spent.
We considered a number of factors in making our decision: the city's infrastructure, overall consumer coverage, consumer demand, market potential and the convenience for suppliers and third party vendors.
Is the Chengdu operation center unique in any way from other Amazon operation sites?
Chengdu is undergoing tremendous change. City infrastructure is being upgraded and rising personal incomes mean a more energetic and empowered consumer sector.
Amazon China's profile and sales volume among western China's consumers were on the rise even before the Chengdu operations center was opened.
Amazon operation centers worldwide have the same cutting-edge IT system and operational management control system. We stick to strict standards for both the hardware and software at our global centers.
Apart from our internal management control systems, we also have a high-quality recruitment team, a strict grading quality system and personnel relocation process to ensure a stable task force.
Besides, Chengdu is home to large numbers of factories and manufacturing sites, and we are seeking to have our new operation center develop beneficial collaboration with local suppliers and third-party vendors.
How does Chengdu fit into Amazon China's global strategy?
We have a world-class operations network in China, and Chengdu is the largest logistics operational center in southwestern China, covering the city of Chongqing and the provinces of Sichuan, Yunnan, Guizhou, Shanxi and part of Qinghai.
Consumers in Chengdu and neighboring regions can enjoy faster delivery than before. Our delivery process has been reduced by up to two days. In some cases, residents in Chengdu and neighboring areas can receive their package on the same day the order was placed.
At the same time, Chengdu is also the home for Amazon China's customer service center and call center.
We offer 24/7 customer service. We are committed to creating a perfect shopping experience for customers.
In a word, the Chengdu operations center plays a vital role for Amazon's business in China.
What kind of help did the local government provide in the run-up to your launching the Chengdu operation center?
Chengdu government agencies provide comprehensive services to e-commerce investors. Labor authorities helped us host a recruitment fair and carried out some training for new employees.
After the launch of the center, human resources and social security departments also invited our local operations team to participate in training sessions on labor law, which was very helpful at the initial stage of operations.
China has an Internet population of more than 500 million, and an increasing number of people are buying from online sites because of cheaper prices and fast delivery.
Amazon China's Chengdu operation center covers 50,000 square meters and will be expanded to 200,000 square meters when completed.
The Chengdu center brings to 15 the number of such operations facilities in China, covering an aggregate 700,000 square meters.
China's online retail sales totaled 1.2 trillion yuan (US$194 billion) in 2012, and the market is expected to grow in coming years, especially in inland areas.
In the first quarter of this year, 24 Chengdu-based online shopping sites reported sales of 7.93 billion yuan.
Online retailing offers an array of products that often go beyond what is available in traditional supermarkets and department stores.
According to the city's e-commerce industry segment of the 12th Five-Year Plan, mobile payment centers and application centers will be set up in the Tianfu New Area.
Zhang Jiantao, vice president of Amazon China, talked about why the company chose to open an operation center in Chengdu and how it will integrate with the broader network in China.
Why did Amazon China chose Chengdu to locate its operation center? What factors did you consider in making the decision?
The domestic online shopping market is growing at a very rapid pace. China has become one of Amazon's most important markets, both in terms of number of shoppers and in terms of money spent.
We considered a number of factors in making our decision: the city's infrastructure, overall consumer coverage, consumer demand, market potential and the convenience for suppliers and third party vendors.
Is the Chengdu operation center unique in any way from other Amazon operation sites?
Chengdu is undergoing tremendous change. City infrastructure is being upgraded and rising personal incomes mean a more energetic and empowered consumer sector.
Amazon China's profile and sales volume among western China's consumers were on the rise even before the Chengdu operations center was opened.
Amazon operation centers worldwide have the same cutting-edge IT system and operational management control system. We stick to strict standards for both the hardware and software at our global centers.
Apart from our internal management control systems, we also have a high-quality recruitment team, a strict grading quality system and personnel relocation process to ensure a stable task force.
Besides, Chengdu is home to large numbers of factories and manufacturing sites, and we are seeking to have our new operation center develop beneficial collaboration with local suppliers and third-party vendors.
How does Chengdu fit into Amazon China's global strategy?
We have a world-class operations network in China, and Chengdu is the largest logistics operational center in southwestern China, covering the city of Chongqing and the provinces of Sichuan, Yunnan, Guizhou, Shanxi and part of Qinghai.
Consumers in Chengdu and neighboring regions can enjoy faster delivery than before. Our delivery process has been reduced by up to two days. In some cases, residents in Chengdu and neighboring areas can receive their package on the same day the order was placed.
At the same time, Chengdu is also the home for Amazon China's customer service center and call center.
We offer 24/7 customer service. We are committed to creating a perfect shopping experience for customers.
In a word, the Chengdu operations center plays a vital role for Amazon's business in China.
What kind of help did the local government provide in the run-up to your launching the Chengdu operation center?
Chengdu government agencies provide comprehensive services to e-commerce investors. Labor authorities helped us host a recruitment fair and carried out some training for new employees.
After the launch of the center, human resources and social security departments also invited our local operations team to participate in training sessions on labor law, which was very helpful at the initial stage of operations.
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