With approaching of the 5.1 (Labor Day) which is a traditional promotion holiday, home electronic appliance manufacturers and retailers stepped up again for the marketing. Suning.com executive vice president Li Bin in his microblogging today initiated a price war against the B2C giant Jingdong Mall claiming that “it’s a shame to stay low-key as there is a market demand out there during the Labor Day holiday”. Earlier, Jingdong chief marketing officer Lan Ye said that the price war stage had come to an end, Jingdong Mall will not focus on the pursuit of pure price competition.
14th, August 2012, Jingdong Mall CEO Liu Qiang announced in his microblogging that the Jingdong will set zero gross profit fir its large electronic appliance within three years and starting from the day of announce all large appliances in Jingdong will be priced at least 10% cheaper than the same sold in Gome or Suning chain stores. The challenge raised the seemingly largest price war in China but many customers later criticized that such price wars were only promotional activities to attract consumer attention and only few good we’re sold in low price.
According to report from ebrun, sale if Jingdong Mall reached US $ 9.7 billion in 2012. With the business success of Jingdong Mall in the B2C field in China (some believe that Jingdong Mall accounts for more than half of the B2C market in China), the precious challenger has now given up the strategy of low price that it promised to use for three years.
Business is business, today Suning’s challenge seems to be venerable, in addition many customers are tired and numb to the “price war on paper”.