Latest News:  
Beijing   Overcast/Thundershower    27 / 20 ℃  City Forecast

English>>China Business

E-commerce price wars escalate in China


08:31, August 14, 2012

BEIJING, Aug. 13 (Xinhuanet) -- With more and more brick-and-mortar home appliance retailers tapping the e-commerce market, the online price wars have been escalating more fiercely in the Chinese market.

Since the beginning of 2012, a life-or-death year for e-commerce, major Chinese online stores including Suning Appliance Co., Ltd and Jingdong Mall have been mired in comprehensive price wars.


Started by Suning in April, the first round of price wars involved major business-to-customer (B2C) retailers including Guomei, Dangdang, TMall, and Jingdong Mall. The second round of wars was waged by Jingdong Mall in June on its founding anniversary.

The third round of price wars is quick on the trigger after Suning announced recently to allocate one billion yuan RMB in August on the occasion of its third anniversary to further compete on price.

The average price cut will be around 30 percent during the sales promotion period, said Li Bin, executive vice-president of Suning.

An employee with Suning Branch in eastern China's Zhejiang Province said the discounts are so attractive that Suning's workers are awaiting to cash in on the opportunity.

Moreover, Suning has initiated its Beijing Strategy to unify the prices of its online and offline products, said Hou Enlong, executive vice president of North China. The tactic was seen by industry insiders as a targeted general offensive on its long-time rival Beijing-based Jingdong Mall.

The tactic will be later extended from Beijing to Shanghai, Guangzhou, Shenzhen, Chongqing and other major Chinese cities, according to Sun Weimin, vice president of Suning.

Lu Renbo, deputy director of the Market Economy Institute of State Council Development Research Center, said the main purpose of Suning to spend a pretty penny to wage a price war is to drive off some incompetent competitors so as to gain a larger market share in e-commerce.

However, Lu was not optimistic on Suning's move to unify its online and offline product prices, as he believed Suning's rivals like Jingdong Mall and TMall will offer even lower prices, resulting in losses in Suning's offline stores.

As for the reason for frequent price wars occurring this year, Lu explained that competition among e-commerce giants has been white-hot, but there is no instantly effective means for its materialization, thus making the price wars as a major method to vie for the market.

【1】 【2】

News we recommend:
Has the bear outstayed his welcome? Steel profits continue to suffer China has entered an era of low consumer prices
Firms should watch out for Internet threats China's property market to cool down: experts Why have people lost trust in data and indices?
US takes trade remedy actions against China  Chinese prefer foreign brands Mascot maker feels pinch of rising labor costs


Leave your comment0 comments

  1. Name


Selections for you

  1. China's aircraft carrier's sea trials

  2. Tragic moments all around the world

  3. Why have people lost trust in data and indices?

  4. Award-winning inkstick designer in E China

  5. Cruel! Polar bear eats cub

  6. Tang Wei models for jewelry designed by herself

Most Popular


  1. Firms should watch out for Internet threats
  2. Why have people lost trust in data and indices?
  3. Money chase likely to continue in U.S. eletions
  4. Real estate rebounds as buyers return
  5. Editorial: Outbound investment risks
  6. Don’t be overwhelmed by domestic issues
  7. US pushes China to get serious about sanctions
  8. Obama diverts attention with Romney bashing
  9. Fearing others' rise offers path to eventual doom

What's happening in China

Watsons pulls 'deadly' facial masks off shelf

  1. Chinese warship wraps up first visit to Bulgaria
  2. Robbery suspect was 'quiet, well-behaved'
  3. Ancient villages welcome investors
  4. Fugitive gunman kills police officer in SW China
  5. 6.2-magnitude quake hits Xinjiang

China Features

  1. Boxing in China II: A Tale of Two Decades
  2. Fortune 500 Chinese companies not strong
  3. Why Hollywood favores China's actresses?
  4. Dongfeng Honda to recall 76,000 CR-Vs
  5. How to protect yourself during heavy rainstorms?

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai