Online price war worries some consumers
Editor: 管理员 Date:2012-08-17 Hit:2906
%3CP%3E%3CFONT%20face%3DVerdana%3EAn%20ongoing%20price%20war%20between%20Chinese%20online%20retailers%20may%20have%20temporarily%20spiked%20sales%2C%20but%20it%20has%20also%20triggered%20concerns%20among%20consumers%20over%20potential%20market%20disruptions.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EStarting%20from%20Wednesday%20morning%2C%20major%20online%20retailers%20like%20360buy%2C%20Suning%20and%20Gome%20started%20offering%20massive%20discounts%2C%20with%20each%20company%20claiming%20to%20sell%20its%20products%20at%20lower%20prices%20than%20its%20competitors.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHowever%2C%20online%20shoppers%20and%20experts%20who%20have%20seen%20similar%20price-cutting%20races%20in%20previous%20times%20have%20been%20skeptical%20about%20the%20offer%2C%20despite%20scooping%20up%20a%20fair%20number%20of%20bargains.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20Ministry%20of%20Commerce%20on%20Thursday%20also%20expressed%20concern%20over%20the%20battle%20by%20reiterating%20that%20all%20marketing%20strategies%20must%20comply%20with%20laws%20and%20market%20rules.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EShen%20Danyang%2C%20spokesman%20for%20the%20ministry%2C%20said%20online%20retailers%20should%20focus%20on%20boosting%20management%20and%20service%20while%20protecting%20the%20interest%20of%20consumers%20and%20suppliers.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20a%20survey%20conducted%20on%20Sina%20Weibo%2C%20the%20country%27s%20most%20popular%20microblogging%20site%2C%2090.7%20percent%20of%2042%2C003%20respondents%20said%20the%20price%20war%20is%20simply%20a%20promotional%20stunt.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Prices%20on%20their%20websites%20have%20wobbled%20somewhat%2C%20but%20only%20a%20few%20items%20owned%20by%20both%20stores%20have%20a%20distinct%20discount%2C%22%20said%20%22Tongkongshishang.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EMeanwhile%2C%20market%20observers%20worry%20that%20excessively%20low%20prices%20may%20dampen%20the%20enthusiasm%20of%20suppliers%20and%20create%20problems%20in%20securing%20sufficient%20stocks%2C%20which%20may%20lead%20to%20a%20delay%20in%20giving%20the%20customers%20their%20discounted%20goods.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChunlan%2C%20a%20major%20air%20conditioner%20manufacturer%2C%20said%20the%20price%20war%20may%20affect%20upstream%20suppliers%20and%20create%20disorder%20in%20the%20home%20appliance%20market%2C%20adding%20that%20consumers%20will%20ultimately%20suffer.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChinese%20law%20forbids%20companies%20from%20selling%20at%20prices%20lower%20than%20cost%20in%20order%20to%20squeeze%20out%20competitors.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ELiu%20Junhai%2C%20vice%20president%20of%20the%20China%20Consumers%20Association%2C%20said%20the%20companies%20engaging%20in%20the%20price%20war%20are%20not%20making%20an%20effort%20to%20offer%20diverse%20products%20and%20better%20services%2C%20but%20to%20try%20and%20occupy%20a%20larger%20portion%20of%20the%20online%20retail%20market.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EZhang%20Yin%2C%20an%20analyst%20at%20venture%20capital%20fund%20Matrix%20Partners%2C%20said%20the%20price%20war%20is%20a%20fairly%20efficient%20marketing%20strategy%20for%20online%20retailers%2C%20as%20they%20can%20raise%20sales%20revenues%20by%20sensationalizing%20the%20situation.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22In%20this%20sense%2C%20all%20companies%20involved%20in%20the%20war%20are%20winners%2C%22%20Zhang%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E360buy%2C%20China%27s%20second-largest%20online%20retailer%20by%20sales%2C%20recently%20announced%20that%20it%20will%20consider%20seeking%20an%20IPO%20next%20year.%20Company%20chairman%20and%20founder%20Liu%20Qiangdong%20said%20Tuesday%20that%20the%20decision%20has%20won%20support%20from%20his%20investors.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ESuning%2C%20one%20of%20360buy%27s%20biggest%20rivals%20and%20the%20country%27s%20top%20retailer%20in%20terms%20of%20sales%20in%202011%2C%20has%20been%20challenged%20by%20gloomy%20performance%20and%20a%20share%20price%20decrease%20in%20recent%20days.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EOn%20Thursday%2C%20shares%20of%20Suning%20tumbled%204.48%20percent%20to%206.18%20yuan%20per%20share.%20The%20company%27s%20shares%20have%20slumped%20more%20than%2040%20percent%20since%20the%20end%20of%20June.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ESuning%20has%20predicted%20that%20its%20net%20profits%20will%20fall%20by%20nearly%2030%20percent%20year%20on%20year%20in%20the%20first%20half%2C%20while%20360buy%20has%20said%20that%20it%20will%20likely%20face%20a%20loss%20as%20well%2C%20despite%20a%20120-percent%20growth%20in%20its%20first-half%20sales.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChen%20Shousong%2C%20an%20analyst%20at%20Analysys%20International%2C%20said%20the%20home%20appliance%20market%20may%20be%20slack%20in%20the%20second%20half%2C%20as%20demand%20for%20the%20durable%20and%20relatively%20expensive%20items%20may%20wane%20after%20the%20discount%20frenzy%20subsides.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChinese%20consumers%20will%20benefit%20little%20from%20the%20price%20war%2C%20according%20to%20Liu.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22If%20the%20winner%20ends%20up%20monopolizing%20the%20online%20retail%20market%2C%20shoppers%20will%20be%20deprived%20of%20the%20benefits%20of%20benign%20competition%2C%22%20he%20warned.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%28Global%20Times%29%3CBR%3E%3C/FONT%3E%3C/P%3E
