(Yicai Global) June 29 -- US e-commerce monolith Amazon.com Inc. [NASDAQ:AMZN] has embarked on collaboration with Migu Culture and Technology Co.
Amazon's new partner is a subsidiary of China's figurehead mobile telecom carrier China Mobile Communications Corp. (China Mobile).
The two will seek to entice more young Chinese consumers towards Amazon products.
David Limp, global senior vice president and head of Amazon's hardware equipment division, and China Mobile Executive Vice President Sha Yuejia have published a customized Kindle Reader for Migu and officially announced the two will cooperate.
The new Kindle Reader incorporates Migu's 500,000 works of electronic literature, which is independent of Kindle's original library, a move that Amazon hopes will enlarge its resources in this field and expand its Kindle market to China's third- and fourth-tier cities though China Mobile's offline channels.
If Kindle is to globalize, it must adapt more to subdivided local markets in various regions. For instance, Chinese have electronic literature, while Japanese love manga, Limp said.
A gender difference is apparent among Kindle users in various countries, Amazon China President Zhang Wenyi noted in a recent interview with Yicai Global. Female users make up nearly 70 percent in the US market, while males constitute a tad more of the Chinese market's. Chinese users are younger in the main than their US peers.
After verifying Migu's content, Limp did not mince his words in conceding that China Mobile's offline channels will put Amazon at an advantage in this cooperation.
China Mobile's diversified offline channels are expected to secure a better future market for Kindle, Limp noted, adding that the company has become aware of the benefits of such a model based on its earlier cooperation with Suning Commerce Group Co. [SHE:002024], in which Kindle appears in bricks-and-mortar stores, as well as in partnership with Best Buy stores in America."
This customized version of Migu costs USD15 (CNY100) -- more than the first-generation Kindle which landed in China several years ago -- but CNY300 less than the most popular Paperwhite version now available. The two have also brought other glad tidings to buyers in the form of a one-year Amazon Prime membership and Migu's reading coupon. In this way, the new-generation Kindle Reader will be able to achieve a price advantage over the latest QQ Reader churned out by rival Tencent Holdings Ltd. [HK:0700], and basically be on a par with the low-level hardware configuration reader iReader Technology Co. introduced in early June.
As a China Mobile subsidiary distributing its digital content, Migu will stride into a myriad of business sectors, including music, video, reading, gaming and animation. Other digital content platforms such as QQ Reader and iReader may, however, more deeply impress China's younger generation than Migu.