U.S.

Markets close in 4 hrs 38 mins

S&P 500 Dow 30 Nasdaq Russell 2000

2,811.27 26,220.31 7,594.16 1,596.81
+18.60 (+0.67%) +188.50 (+0.72%) +66.62 (+0.88%) +6.74 (+0.42%)

Get your Bento travel bag

Bento: Special today – Special pricing
for Indiegogo backers
Offer Ends Soon ends soon.

Something Went Wrong

Unfortunately, an error occurred. To try
again, refresh the browser.
SS-400-710

By Pei Li and Melissa Fares

JIAXING, China/NEW YORK (Reuters) - When

Kevin Chiu left his job in 2012 to try his luck at
starting an online apparel business in a rural
Chinese city, his main goal was to carve out more
time to spend with his wife and newborn child.

It never entered his mind that his Orolay puffer

jacket would become a huge hit, celebrated as the
'Amazon Coat' in U.S. social and traditional media -
and held up as a budding rival to premium brand
Canada Goose.

Using duck down sourced from China's Hebei and

Anhui provinces, the polyester coats are priced
between $80 and $139. By contrast, Canada Goose
jackets start from about $575 in the United States.

"We made more money in January than we did for

the whole of 2017," Chiu, 32, told Reuters at his
factory in the eastern Chinese city of Jiaxing.

He estimates his firm made $5 million in sales last

month and expects to bring in $30-$40 million this
year. U.S. sales - almost all of which are sold
through Amazon.com Inc - account for 70 percent of
total revenue.

Orolay's success is, however, not just a tale of

competitive pricing and a design that found favour
with U.S. consumers.

Chiu is among a wave of Chinese merchants that

have benefited from measures introduced by
Amazon in recent years that have made it easy for
overseas vendors to sell on its site.

That's provoked concerns among U.S. sellers on

Amazon that they are being outgunned. And in
industries such as apparel, experts say brick-and-
mortar retailers cannot ignore the threat posed by
the influx of small brands, many of which are based
in China.

"It's the impact, collectively, that's happening in the

industry from all of these brands. When you add
them up, they're just all taking market share," said
Robert D'Loren, chief executive of Xcel Brands Inc,
whose merchandise is sold at Macy's Inc and on
Amazon.com.

Amazon declined to comment on the view that U.S.

firms are being undercut by Chinese merchants
using its site. It does not break down the number of
sellers on its sites by country.

The number of Chinese merchants on Amazon is set

to grow further as fierce competition and rising costs
have made it less attractive to sell on local
e-commerce sites like Alibaba Group Holding Ltd's
Tmall, analysts say.

Indeed, Chiu no longer sells in China. Orolay's other

markets are Europe, Japan, Taiwan and Australia.
"We did sell on Alibaba in the early days...but
competition in China is stiffer," he said, adding that
increased costs to use local sites was also a factor.

In addition to fees to use Chinese e-commerce sites,

sellers also face other costs such as investing in
customer service teams. Alibaba declined to
respond to Reuters questions about whether costs
for vendors had increased.

Analysts say the number of Chinese merchants

selling on Amazon's U.S. site began to pick up over
the last five years after it introduced measures that
allowed sellers worldwide to store products at
Amazon warehouses and provided help shipping
those goods to customers.

Late last year, the retail giant also started a program

that refers China-based sellers to local lenders. By
comparison, Amazon offers loans to selected U.S.,
UK and Japan-based small businesses that sell on
its site.

Chiu credits Amazon for much of the firm's success

but is thinking of branching out, saying offers from
retailers include invitations to sell online from
Walmart Inc and U.S. shopping site Rue La La.

A Walmart spokeswoman said the firm had no

agreement in place with Orolay. Rue La La did not
respond to requests for comment.

Expansion plans include extending Orolay's product

line to cotton clothing and men's outerwear. But for
now, Chiu is still marvelling at how his business has
become so successful in a market he barely knows.

"I went to New York for vacation twice last year, and
was so excited to see that people on the street are
wearing our jackets," he said.

"I was very eager to ask them how they like our
jackets, but didn't do it because I don't speak much
English."

(Reporting by Pei Li in Jiaxing, China and Melissa

Fares in New York; Writing and additional reporting
by Brenda Goh in Shanghai; Editing by Vanessa
O'Connell and Edwina Gibbs)
 170 reactions

Share your reaction

Guidelines Post

Top Reactions 408 viewing

mike 5 hours ago

What's an Amazon Coat?
-- Note to Writer & Editor: When doing a story
on an object, it's a Good idea to include a pic
of said object.
Reply Replies (17) 121 4

CBL77 3 hours ago

Hey I get stuff from China through Amazon all
the time, I don’t intend to but for some reason
there seems to be quite a bit of merchandise
offered on Amazon that comes from
China....even the stuff that is supposedly
made here.
Reply Replies (5) 35 2

QuestMr 6 hours ago

I think we need to impose foreign trade taxes
on these articles the same way Amazon was
forced to implement sales tax.
Reply Replies (2) 68 8

Mark 3 hours ago

Amazon is doing to US manufacturers in the
2010's what Walmart did to US manufacturers
in the 2000's decade.
Reply Replies (2) 25 1

JAO 6 hours ago

The "problem" is that the expensive brands
that would be complaining should not have
been so expensive to begin with.
Reply Replies (10) 67 4

Aibohphobia 5 hours ago

Nice picture of the sweat shop....how about
the coat?
Reply Replies (7) 73 11
PLC 8 hours ago
Slight drawback...shipping typically takes a
month or more.
Reply Replies (11) 39 10

BR 3 hours ago
Amazon forced sale tax on US sellers, but not
international sellers. No, I refuse to buy from
China sellers. I want to support US
businesses.
Reply Replies (12) 32 14

Flash 3 hours ago

This is how American business interest has
been undermined by some retail corporations.
Time to impose additional tax.
Reply Replies (1) 9

incredulous 3 hours ago

Why doesn't Amazon get behind companies
making coats right here in the US? It's nice to
find cheap merchandise, but our people and
our economy could sure use the business.
Reply Replies (6) 20 5

SPANKY 4 hours ago

I always look to see where the products I buy
are made. I make it a point to avoid those
made in China. I may have to pay more but,
for me, it's worth it.
Reply Replies (5) 23 8

DIANA P 4 hours ago

This is exactly why American have stagnated
wages and our wealth is transferring to other
Nations. Chinese products should be brokered
by a US sellers. Amazon shouldn’t allow it.
Reply Replies (5) 36 15

Man Kong 7 hours ago

China has been created and constructed
being the factory of the world. When you come
to a close view of what is doing in China, you
will be horrified for what the Chinese can do.
When you come to a small city call Yiwu which
is quire near to Jiaxing, Zhijiang you can find
all those items made in the whole country.
Regretfully, you can never see them all unless
you have the time, and I mean over 100 days
for you to go through the shops and
showrooms downtown without taking serious
thoughts on the products. You can see
everything and put your purchase on any of
them, for example, from 1 Meter of fabric to 1
million meters from the same shop you prefer.
Less

Reply Replies (6) 20 9

Uram 4 hours ago

This is the main reason Trump want tariff on
Chinese import .also start collecting tax from
Amazon
Reply Replies (1) 16 4

E 2 hours ago
I bought a jacket from Amazon made in China.
Two days later my jacket fell apart.
Reply Replies (5) 4 4

Chippy 6 hours ago

I just saw a documentary on electric cars
being sold in China. Tesla's have a 50%
markup (tax) in order to be sold in China so
that the Chinese version costs half as much. I
hope Trump keeps fighting back. We can't
expect any other politician to put Americans
first.
Reply Replies (6) 29 13

Pita 3 hours ago

How long of guaranty before seams start to
unravel fall apart? Hmm lets see 60 seconds
or one minute!
Reply 7 1

LesJ 8 hours ago

see how happy he will be when amazon
suspends them permanently for some obscure
violation of it policies and starts making the
exact same coat. thats amazons modus
operandi
Reply Replies (2) 17 6

Pelosi's Last Brain Cell 3 hours ago

These coats need to be taxed higher on
import
Reply Replies (4) 9 3

Son of Ofama 4 hours ago

"I was very eager to ask them how they like
our jackets, but didn't do it because I don't
speak much English“.....Really? Do you know
how many Chinese are in NYC?... They are
buying up Brooklyn with every sale have cash
under the table
Reply 2

Samedino 7 hours ago

Umm all chinese products are a hit in US no
news we all buy it
Reply Replies (4) 15 5

jen 3 hours ago

Made in China?? Where is buy Americans hire
Americans. LOL
Reply 3

dog s 2 hours ago

Amazon is one GIANT Chinese market,
Amazon has no SOUL and will do anything to
make a buck
Reply 4

Geo 3 hours ago

China been around surviving 1000s of years .
USA will be lucky to make it 300 years at this
rate
Reply 4 1

None 6 hours ago

Yah hooray for cheep Chinese knockoffs put
together by women like those in the picture
who probably make peanuts and work 7 days
a week. Big man this guy.
Reply Replies (3) 16 4

Bob 4 hours ago

look at all those American jobs will ya - wow -
corp tax cuts at work -
Reply Replies (3) 5 4

Man Kong 6 hours ago

People are complaining for the late delivery.
The reason is the importers are not running
stocks in the US. When an item becomes hot,
they increase the order and press hard on the
factory to ship the next day. When placing
orders, the US companies never commit
themselves on a fixed quantity. They will give
an estimation of what they can use and this
estimation is not a commitment. Now you
should understand why your order is always
shipped late.
Reply 8 9
Dalek 2 hours ago
Non-citizens, too, can achieve the American
Dream.
Reply Replies (2) 1

Joseph 4 hours ago

Americans and their “disposable goods”
buying habits, yet again punctuating the wage
stagnation that’s taken place for around 40
years now.
Reply Replies (1) 4 1

chineseinferiorracesmalldik 7 hours ago

China as always promoting with Propaganda..
I would take chinese announcements with a
heavy dose of suspicion coming from a
Communist country..
Reply Replies (2) 12 5

Maggie 7 hours ago

Must be no heat in that factory :(
Reply 7 3

Me 3 hours ago
Who cares where it's made. If you want to be
competitive, put more effort and value in your
products. Dont complain that you're being
undercut when you have the opportunity to
sale it cheap, but chose to charge a grip.
Reply 2

Matt 3 hours ago

it's nice how they give the kids a warm place
to work
Reply 2

JF 3 hours ago
...and this is why factory production will never
return to the US. We can't compete with
Chinese slave labor, and US consumers only
care about the lowest price.
Reply 3

TM 7 hours ago
ideology + narrowminded + political
correctness = America
Reply Replies (2) 9 7

marcos 3 hours ago

 easy for Chinese companies to sell cheap
products in the US, but if your #$%$ company
trying to sell a product in china, forget it.
Reply Replies (1) 1 1

Summer 3 hours ago

Marketing without even showing the coat that
0 has seen or purchased
Reply 2

Insufferable 2 hours ago

As for the quality? Is this a "You get what you
pay for" situation? Did Zion's Nike have a
"Made in USA" tag inside?
Reply 1

machop 3 hours ago

who benefits from this? Consumer.

Chinese firm Reply 3 1 Quote Lookup

behind the Ownership of 8 seconds ago

Recently Viewed
'Amazon Coat' hits Profits of Changing the concept or modifying
land law can be measured by trillions,in

jackpot in U.S., China.Dishonesty and injustice.If the trillions

of land debt is not repaid .The first, Decision
Your list is empty.

eschews China Makers should repay debt.

Reply 1
By Pei Li and Melissa Fares
Reuters February 25, 2019
Show more

Bento: Special Offer Ends Soon

Business Thomson Reuters StreetEvents
Get your Bento travel bag today –
Edited Transcript of TFX Special pricing for Indiegogo
backers ends soon.
earnings conference call or p…
As expected, we gained momentum as we
moved throughout the year delivering What to Read Next
accelerated organic revenue growth in the sec…

Business Simply Wall St.

Yangzijiang
Shipbuilding (Hol…
Small-cap and large-cap
companies receive a lot of a…

Sponsored U.S.-China showdown: Huawei has 'completely

taken over' the Mobile World Congress
Americans over 50
really enjoy this s… Yahoo Finance
14 million players and
Throne: Kingdom At War

Business SmarterAnalyst

CannTrust (CTST): An
Undervalued Pot Stock Just…
You can start trading CannTrust today on the
NYSE. The new symbol is (CTST) and will take Where Ford Is Failing, and What It's Doing
over where the OTC symbol has left off. Cann… About It

Motley Fool
Business Motley Fool

Axon Enterprise Q4
Earnings: 4 Thing…
Waiting to charge ahead
Taser sales remain the bigg…

Business Investor's Business Daily

AT&T Stock Watch:

Ruling On DOJ A… Amazon cargo jet crashes into Trinity Bay
The U.S. Court of Appeals for
the D.C. Circuit could rule t… American City Business Journals

Business Investor's Business Daily

Biotech Stocks Pop

After This Compa…
Crispr Therapeutics stock
popped Monday after the bi…

Business Motley Fool

Where Ford Is Crude Oil Prices Fall On Trump's OPEC Tweet

But U.S. Shale Boom Continues
Failing, and What…
While Ford Motor Company Investor's Business Daily
(NYSE: F) is still easily profi…

Business Zacks

CSIQ or RUN:
Which Is the Bett…
Investors looking for stocks in
the Solar sector might want…

Business CNBC Videos Vodafone boss: U.S. needs to share any Huawei
evidence with Europe
Buffett: I would buy
the S&P 500 in a… Reuters
In an interview with CNBC's
Becky Quick, Berkshire Hat…

Business MoneyWise

Why You Should

Consider Putting…
The risks with CDs Yeah, we
know — we said at the
 Warren Buffett touts the 'American tailwind' and
Business trashes gold-touting preachers of doom
American City Business Journals
Yahoo Finance
FDA panel says
Karyopharm's ca…
The company announced it
would seek an early FDA a…

Finance
American City Business Journals

Amazon cargo jet

crashes into Trini… Bento: Special Offer Ends Soon
A widebody cargo plane Get your Bento travel bag today –
transporting packages for A… Special pricing for Indiegogo
backers ends soon.

Business Market Realist

Intel Stock Rises

over 2% on Morg…
Intel Stock Rises over 2% on
Morgan Stanley UpgradeInt…

Business Market Realist

Boeing Likely to
Get Big 737 MAX…
Boeing Likely to Get Big 737
MAX Order after Trump Visi…

Business CNBC

Goldman says the US economy

has 'sharply decelerated' but…
When companies are experiencing a drag on
sales from a slowing economy, those with low
operating leverage will be less affected, Gold…

Business CNBC

Electronic Arts' latest big bet,

'Anthem,' is receiving a tepid…
Hot off the heels of the success of its viral hit
"Apex Legends," video gaming giant Electronic
Arts (EA) released a highly anticipated new ga…

Business CNBC Videos

Warren Buffett on
what he plans to…
In an interview with CNBC's
Becky Quick, Berkshire Hat…

Business Motley Fool

First Solar's Ups

and Downs Conti…
 First Solar (NASDAQ: FSLR)

Business Thomson Reuters StreetEvents

Edited Transcript of KRN.DE

earnings conference call or p…
Yes, of course, I would say that in the move to
Hungary, we are going to have still especially in
-- here in the beginning double the amount of…

Business MarketWatch

Palo Alto Networks tapped as a

'best idea' by Guggenheim ah…
Guggenheim analyst Imtiaz Koujalgi elevated
Palo Alto Networks Inc. (panw) to his firm's "best
ideas" list on Monday, ahead of the company'…
Netflix's 4 Oscar wins solidify the new normal in
Hollywood

Yahoo Finance
Will This State Be the 14th to Tax Social
Security Benefits?

Motley Fool

Warren Buffett says Berkshire overpaid for Kraft

Heinz

Reuters

Bento: Special Offer Ends Soon

Get your Bento travel bag today –
Special pricing for Indiegogo
backers ends soon.

Warren Buffett on what he plans to do with his

Kraft Heinz shares and 3G Capital

CNBC Videos

AT&T Stock Watch: Ruling On DOJ Appeal Of

Time Warner Expected Soon

Investor's Business Daily

Buffett holding off on ‘elephant-sized
acquisition’

Yahoo Finance Video

Warren Buffett's burning distaste for quarterly

earnings reports

Yahoo Finance

GE CEO Larry Culp: Danaher deal is the

superior path to a health-care IPO

CNBC Videos

Emerging Leaders in the Marijuana Industry

GlobeNewswire
Axon Enterprise Q4 Earnings: 4 Things
Investors Should Watch

Motley Fool

Netflix's Oscar wins solidify Hollywood’s new

normal

Yahoo Finance Video

Morning Brief: Tariffs delayed, Huawei in

spotlight, Buffett still seeks ‘elephant’

Yahoo Finance

Should Social Security's Earnings Test Get the

Ax?

Motley Fool

Does California Democrat Rep. Adam Schiff

have evidence of Trump-Russia collusion?

Fox Business Videos

Chicago's Next Mayor Can't Dodge Tax Pain
Needed for Pension Fix

Bloomberg

Marijuana Stock CannTrust Officially Moves to

the NYSE -- Is It a Buy?

Motley Fool

Data Disclaimer Help Suggestions