Dangdang.com: The Amazon.com of China
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Case Code: BSTR099 Case Length: 8 Pages Period: 1997 - 2004 Pub Date: 2004 Teaching Note: Not Available |
Price: Rs.300 Organization: Dangdang.com Industry: Online Retailing Countries : China Themes: Business Environment |
Abstract Case Intro 1 Case Intro 2 Excerpts
"China's Internet bookstore market is large and offers high profit margins, dangdang's profit can exceed that of Amazon.com's - and provide a tangible return on investment"
- Pat McGovern, Chairman of International Data Group (IDG), August 2000.
Introduction
By 2003, dangdang.com (dangdang) was rated as one of the most successful online bookstores in China. It featured almost 90 percent of the books published in China. Launched in November 1999, dangdang recorded sales worth China Yuan Renminbi (CNY) 1 million2 in the first two months. In a years' time, dangdang was ranked as the number one online bookstore in China. The Website became popular with the Chinese living both in China and abroad. Although the number of Internet users in China was increasing at a healthy rate, they were hesitant to experiment with online shopping. Online shopping was affected by infrastructure issues like low usage of credit cards and lack of a nationwide express delivery service. However, dangdang survived all the odds, and emerged as the leader. Its success can be attributed to its large collection of books and its continuous effort to improve the user experience....
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