Zanox goes East, set to tap China market
Zanox is going places, literally. Close on the heels of its plans to start operations in the United States, the company is now tapping the huge Chinese market with an office in Shanghai.
It's not surprising in the least that Zanox has decided to tap this market. A new Ernst & Young study predicts that China will surpass the US market for luxury goods in the next five years. What's more, online trade in China is projected to grow at almost 50% over the next three years, according to China Net Investor, a news digest. Now, that is indeed some growth!
Zanox is taking the initiative and trying to take an early lead in performance-based marketing solutions in China. Online marketing still has a long way to go in that part of the world--- but just the sheer size of the markets in Asia offer considerable opportunities for these companies. LinkShare's acquisition by a Japanese company and now the entry into China by Zanox are all indications that there will be considerable action in Asia in the next couple of years.
Zanox's international expansion strategy is apparently driven by demand from merchants who are looking to increase their global footprint and sales. So, this move will definitely be beneficial to merchants who are trying to sell their products to the huge potential audience of buyers in China (and quite possibly, rest of Asia in the near future).
I'm not sure whether existing European affiliates stand to benefit from these expansions. We'll have to wait and watch and understand what specific plans Zanox has for this and any other new markets.
We may or may not benefit directly, but that shouldn't stop us from congratulating the company on their foray into the challenging (and hopefully lucrative) China market and wishing them the very best.
Until next time,
Ben Flux
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