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Winning e-commerce price war

Updated: 2012-08-20 10:28
( China Daily)

Winning e-commerce price war

The price war that broke out among several major Chinese electronics and appliances retailers last week has attracted growing attention from different parties, including customers, investors and regulatory authorities. Suning Appliance Co and Beijing Jingdong Century Trading Co, also known as Jingdong Mall (360buy.com), engaged in a price war earlier last week after Suning began to sharply cut down its prices on Aug 15. Both companies are the leading players in China's e-commerce sector. Shortly after that, other online commerce retailers also got involved in the price war, including Gome Electrical Appliances Holding Ltd and New York Stock Exchange-listed China Dangdang Inc. So far, Alibaba Group's Tmall.com is the only player that has avoided the price war. Jingdong Mall's Chief Executive Officer Liu Qiangdong even pledged that large home appliances sold on its e-commerce website would be cheaper than those sold by either Suning or Gome.

SHOUNIDAOTIANMING: Jack Ma, who is chairman and chief executive officer of Alibaba Group, is going to win in the end.

XUESEXINGQIU: It is a battle of money. I don't think Jingdong will win in the end.

VIVECUI: I think they will definitely increase the prices first and then offer discounts to customers eventually. I have bought the item that I need at Amazon.com at the same price.

LONGFAYAOHONG: The price war is a marketing campaign that has been elaborately planned.

FUQIANG-JIAYOU: Items with a price cut are all out of stock. The price reduction makes no sense at all then.

MINGERAI: Let's wait quietly and see what's going to happen next.

QDX1960: I intended to buy a coffee maker amid the wave of price reductions among e-commerce retailers, but then I found that the product I wanted to buy is out of stock or has a higher price on those online platforms than those sold on taobao.com.

SAKU_KNIGHT: Whether it's a form of marketing or not, consumers will be the beneficiaries.

All the information is from Sina Weibo.

 

Zoom-in on e-commerce price war:

Major online retailers extend price war to high street
MOC gives opinion on Suning, Jingdong price war
Price war launches battle for customers
Jingdong CEO ignites price war talks

Special coverage:

Online retailers in spat with peers
 
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