China’s electricity supplier growth costs scale expansion and price war

paradox of Chinese style: "the rapid development of online retail, so that investors began to expand the scale and price war a lot of money."

to market operators experience, Jingdong is to provide logistics services for the seller’s competition, they are building a different from UPS and FedEX and other international logistics services logistics network. Jingdong announced in November last year, its logistics channels to ensure the delivery of 23 cities on the same day, the next day served in 150 cities.

Jingdong’s service system includes a collection of research in the credit card is not popular when the cash on delivery, 80% of Chinese people in the transaction payment. Alibaba announced on January, will be working with major financial institutions, logistics companies and retailers, invested 16 billion yuan to build a nationwide logistics network.

‘s numerous investment and price wars are eroding their profits in the latest release of the top 500 Internet retailers in Asia, Alibaba, the privately held company, ranked first. Yahoo Corp also holds some shares. By the end of June 30, 2012, the company 9 months income is 2 billion 900 million yuan, of which net income is 782 million yuan, the number, the vast majority of Internet Co are difficult to challenge.

VIPShop, ranked third in the Internet retailer’s top Asian list in 2012, in the third quarter of achieved sales growth of 197%, but the report said the company is still a loss of $3 million 300 thousand. Jingdong plans to achieve profitability in the fourth quarter of 2013, new egg, the e-commerce company headquartered in the United States, Chinese local operations, is expected to achieve profitability in the next few years.

loss will let those excited China electrical business investors to calm down. One of the signals is to buy the site – handle network in the third round of financing $155 million, in 2012 postponed the issue of IPO. The ups and downs for those Groupon for China imitators (Groupon is considered to be the originator of the group purchase), the hot money inflows caused China e-commerce bubble of false prosperity of the facts. In the 18 months after the success of Groupon, in 2012 the Chinese market is flooded with the purchase of the site, and by the year of 2011, this figure will be reduced to a total of 3000 households in. Macquarie says.

, a large number of Chinese Internet merchants, relying on venture capital, willing to take profits for market share in this way to get involved in the field of B2C." Dangdang’s executive chairman told analysts last fall, Dangdang listed in December 2010.

before and after Dangdang listed, is a lot of capital into the B2C market stage. Yu Yu said that the price is equal to or lower than the cost of some enterprises to promote the sale of a simple method. Dangdang ranked tenth in the Internet retailer’s top Asian list of the top 500.


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