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CHINA-ECONOMY-ONLINE RETAILER-PRICE WAR

(Xinhua News Agency) Updated: 2012-12-31 11:27

CHINA-ECONOMY-ONLINE RETAILER-PRICE WAR

SHANGHAI, Aug. 15, 2012 (Xinhua) -- The combined photo taken on Aug. 15, 2012 shows sales advertisements on the websites of Suning, 360buy.com, 51buy.com and Gome (clockwise from top left).

Chinese retail giants on Wednesday started offering massive tit-for-tat discounts to fire up sales amid sluggish domestic demand.

Liu Qiangdong, chairman and founder of 360buy.com, China's second-largest online retailer by sales, announced that his company will sell all major electric home appliances at cheaper prices than those of rivals Gome and Suning as of Wednesday morning.

Li Bin, vice executive of retail giant Suning.com, replied to Liu's announcement by stating that all items sold by Suning, including home appliances, are already cheaper than those on 360buy.com.

Other online retailers, including Dangdang.com and smartphone manufacturer Xiaomi have announced their own deals and preferential policies to attract a bigger portion of the country's massive online shopping demographic.

Large discounts are one of the few methods online retailers have at their disposal to attract more consumers, as the market is highly competitive. Liu said only large portions of market share can help companies offset supply costs. (Xinhua/Pei Xin)

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