Jingdong Liu Qiangdong the price war is not only a dead end show escape

speed transit network March 28th news as a domestic B2C enterprise two giants, Jingdong and store dangdang.com price war kicked off this year’s online shopping website in China rush. Recently, in an interview with the media, the Jingdong mall CEO Liu Qiangdong said, engaged in electronic commerce must take the price war of this road, if only one escape.

price war is the only way to do electricity supplier

talked about the reasons for the price war and Liu Qiangdong said Dangdang network, is a low-cost competitive strategy of Jingdong mall consistent, any products will be more than 10% cheaper than the opponent, when entering the field of books also adopt this strategy, so it caused the price war and dangdang.com. Behind the price war is not the winner, hit everyone’s gross profit margin is zero when it will stop.

just for the dormant book price war, a lot of people think this is just a show. Liu Qiangdong explained that the price war is not a show two enterprises are hard work and great cost, the price war is to compete for users.

previously, Dangdang President Li Guoqing has said that Jingdong should not play with Dangdang, all B2C companies should unite to fight with Taobao. In this regard, Liu Qiangdong said, "we don’t have a fight with Taobao and Taobao, there is no need to fight, our user% 100 is the Jingdong’s competitors from Taobao only Dangdang such enterprises."

many industry analysts believe that the price war continues to go on the road will bring great disaster to the enterprise. Liu Qiangdong put forward the contrary views, he said, engaged in electronic commerce must take the price war of this road, if only one escape. For Jingdong mall has the ability to continue to go on the road of price war, Liu Qiangdong confident, first of all, there is no huge loss Jingdong, but a large investment in logistics, so every year a slight loss. Jingdong’s financial commitment, so no fear of price war. Jingdong and the third round of financing more than $500 million at the end of March will be the arrival of all, to have enough capital to make price war."

does not give up the relative holding does not allow one party dominance

Jingdong mall had previously obtained from today’s capital, bull capital and other multi investment. The relationship between the founders and investors, Liu Qiangdong said that his relationship with investors is very simple, investors provide funds for the Jingdong, he told investors in stock returns, he put this relationship as "one night stand". Coincidentally, previously listed dangdang.com, Li Guoqing will also be likened to "the relationship between enterprises and banks of the one night stand, two B2C corporate chiefs in the price war outside the field again agree without prior without previous consultation. Liu Qiangdong also pointed out that most of the electricity supplier in the field of entrepreneurs are very attractive to investors, not only in Beijing East; and there is no secret in the project and business model, the main factors to attract investors is the entrepreneurs themselves.

according to the speed transit network to understand, due to the urgent need for capital expansion, after several rounds of financing

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Comments