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Deep anatomy of online price war for electronics in China


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In May, China e-commerce has been immersed in the smoke of price war on electronics. Any major B2C player could join this fight is already in, and it seemed the heat has not died down so far.

In this issue, we questioned the purpose of the ferocious price war and have a close look at each participnt.

Other focuses in this issue:
- Dynamics for Chinese group buying market in 2012 Q1
- China’s social media exploding
- Silver lining of second-hand luxury consignment
- Macy’s invested in Vipstore to tap into China
- Taobao bribery scandal exposes flaws in China’s e-commerce regulations

This report is issued by L'Atelier BNP Paribas

Published in: Business, News & Politics
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Deep anatomy of online price war for electronics in China

  1. 1. e-Commerce Insider I MayDeep anatomy of online price war forelectronics in China
  2. 2. Article from e-Commerce Insider, the monthly report monitoring market trends in China Roles played by all B2Cs in the price war Trigger Followers More like herd behavior Strategic alliance between Dangdang and Gome, put pressure on 360buy Intimidator Tmall would like to strengthen its position as the true Recently invested by Tencent Intimidator B2C king in China, while its biggest enemy is always Intimidator Intimidator Threw in RMB500 million into the game Followers 360buy. Proclaim to collaborate with 800 electronics Intimidator brands on its mall Gave away RMB200 million for discount sale Followers Followers Followers Common foe Followers Powered by Gome. Recently implemented steep discounts Common foe Common foe foe Common Common foe 360buy was dragged into this to be defensive. In order Accelerator to hold its ground, 360buy decided to fight back; counteracting by spending RMB500 million Ran a 30% price slash on electronics Accelerator Accelerator Accelerator Accelerator The first move after the Suning has a burning ambition to take down 360buy alliance was to launch series and cannot stay calm for its peer Gome’s alliance. So of special promotion and far it has claimed it would devote RMB3 billion to this Claimed to forfeit RMb300 million to join discount sale on electronics price war, while forfeiting RMB 400 million profit the war
  3. 3. What else are within e-Commerce Insider this month? Get the full report This report will give you… Up-To-Date Market Data – List of graphs & charts on e-commerce Internet company insights  Market share of Chinese key group buying website  Glimpse of main local social media players  Overview of  Overview of, run by  What does Taobao bribery scandal mean for e-commerce industry  Background introduction of key B2C player in online electronics sale  Deep Anatomy of online price war for electronics in China Tmall.comBrands & Retailers Strategy Updates  Topics covered in this report Group Online Online Social Social Media B2C Market Buying Luxury Shopping Commerce
  4. 4. Get the full report More articles, More analysis with e-Commerce Insider, your monthly report dedicated to the Chinese market ¥4 500 per month (excluding business tax, for a 1 year subscription plan) Each monthExclusive market newsLatest available market dataNew consumers trendsBrands strategyReview of new players
  5. 5. How to subscribe?Request more information by email
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