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Studio interview: Can a zero-profit strategy be sustained?

08-15-2012 22:17 BJT

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China’s online shoppers are waking up to find the country’s leading online retailers are caught in one of the fiercest price wars ever. It’s gotten to a point where one company is even announcing it’s willing to sell its products with zero profit for the next three years. Full story >>

For more on this issue, we’re joined in the studio by Professor Li Yong, Deputy Secretary General of the China Association of International Trade.

Q1. As mentioned 360 Jingdong Mall has found it hard to make a profit since it started its business back in 2004, despite the increasing revenue and growing market share. The CEO of Jingdong claims that Jingdong has enough cash to continue a zero-profit strategy. What’s your opinion of this kind of business pattern?

Q2. Suning appliance says this is the last time it will follow the price war started by Jingdong Mall’s 360buy. What’s your opinion of the price war? What do you think its impact will be on the industry in the longer term?

 

Editor:Zhang Dan |Source: CCTV.com

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