Ali And Jingdong "Electricity Supplier War" To Upgrade The Number Of Responses To Deal With

It is reported that the first quarter of 2015

The share is about two times that of the same period last year.

Mall share also climbed to 22.8%.

Wall Street reported that, as China's two largest electricity supplier giant, Alibaba and Jingdong between the "cat and dog war" escalating.

In addition to the challenges from Jingdong, jumei.com, vip.com and some other vertical

The leaders of the website are also exerting pressure on Alibaba.

Against this background, in order to further consolidate its leading position in China's e-commerce market, Alibaba began to sacrifice "new weapons": signing exclusive sales agreements with well-known brands.

At the end of April this year, Ma Yun, founder of Alibaba group, China's e-commerce company, launched a lobbying campaign to Tadashi Yanai, the head of Fast Retailing, the largest clothing manufacturer in Asia.

Not long ago, Fast Retailing's famous clothing brand.

(Uniqlo) began selling products on Alibaba's biggest competitor, Jingdong mall, and sales were quite hot.

According to a number of people familiar with the matter, Ma Yun and his team at that time promised Ryui Masa that if UNIQLO had "more loyalty" to Alibaba's platform, Alibaba would bring more traffic and sales to the flagship store of UNIQLO.

From UNIQLO closes the flagship store of Jingdong mall

In July, UNIQLO closed the flagship store on Jingdong mall. The reason given is that Jingdong mall is not compatible with its e-commerce strategy.

Jingdong said that UNIQLO must have closed Jingdong mall flagship store because of "nothing related to sales performance", because the demand for this brand is very strong.

UNIQLO declined to comment further.

The battle of UNIQLO's seesaw shows that Chinese e-commerce companies are becoming more competitive in the world's largest online retail market.

Last year, the total volume of e-commerce in China reached 2 trillion and 820 billion yuan (US $441 billion).

In the past few months, Alibaba and other shopping websites have been trying to sign exclusive sales contracts with well-known brands or become their new product release platforms. They require manufacturers on their platforms to offer substantial discounts, and they are also attacking each other when they are interviewed by media and speaking.

Obviously, Alibaba is already the leader of China's electricity supplier market. About 80% of all online shopping pactions in China are completed on Alibaba's platform.

Alibaba's online shopping platform Taobao is further consolidating this dominant position.

The total number of businesses on Taobao is around 8 million, many of which are operated by individuals.

The online shopping platform of Jingdong mall is much smaller in size, and it does not disclose the exact number of businesses.

It is reported that in the fastest growing market segment (including sales of large online platforms and stores such as Alibaba's Taobao), the share of Alibaba in the first quarter of 2015 reached 58.6%, about two times that of the same period last year, and the market share of Jingdong mall also climbed to 22.8% from 19.2% in the same period last year.

Alibaba said that in the last fiscal year ended March, the total volume of all the retail websites of the group reached RMB 2 trillion and 440 billion, which surpassed the total of the five ranking e-commerce platform pactions.

Ali is facing increasing pressure.

However, Alibaba also said that the group faced increasingly competitive pressure.

More and more vendors are trying to get a share from China's huge electricity supplier market, and have set up their own market segments -- from China's largest cosmetics sales website jumei.com, fashion goods sales website vip.com, to the comprehensive online shopping center No. 1 store (which was wholly bought by WAL-MART in July).

Cai Chongxin, executive vice chairman of Alibaba group (Joseph Tsai), said in a media interview that fierce competition is also the nature of the industry itself, but only in China.

The scale of the market is very large, and the potential return of the final win is also very tempting, so a large number of entrepreneurs and their support funds have entered the market.

As China's economic growth began to slow down, competition in the market became more intense.

Alibaba released its second quarter earnings report last Wednesday. Due to the challenges of market saturation and pition to mobile terminals, as well as the company's "one-off project", its revenue in the quarter was $3 billion 260 million, less than analysts expected.

"Dog and Dog Wars" escalating

The competition between Alibaba and Jingdong mall is the most intense. In China, it has been dubbed "cat and dog war". Cats and dogs are mascots of Taobao and Jingdong mall respectively.

Last week, Alibaba launched an attack on electronic products, one of the most powerful areas in Jingdong mall, and invested about $4 billion 500 million in investment in 20% of Suning group, a Chinese electronics retailer.

Alibaba has also signed a cooperation agreement with more than 160 brands in recent months. The company expects that these agreements will create more than 30 billion yuan of pactions for its shopping mall next year.

At least 20 brands and retailers plan to sell their products exclusively on Tmall mall, including outdoor sports equipment manufacturer Timberland and sporting goods store.

(Decathlon).

Jingdong mall CEO Shen Haoyu said: "we are paying close attention to the exclusive sale agreement signed by Alibaba, but we do not think this is in line with the interests of some brands."

Cai Chongxin said that many brands signed exclusive sales agreements with Alibaba because they knew "we can promote sales of their products."

The contest between the two companies sometimes turned into a "war of words".

Last year, Ma once said Jingdong mall would eventually become a tragedy. He apologized for this statement afterwards.

In May of this year, Zhang Jianfeng, President of Alibaba retail platform business, said, "no matter what Alibaba does, Jingdong will immediately follow suit".

Some projects in the field of payment and so on.

In an office at Jingdong headquarters in Beijing, the room is hung with red banners, including a banner that reads, "fight for the first, fight, fight to the end!"

The Jingdong has also made a big fuss about China's regulatory authorities' recent attack on the fake and shoddy products of the e-commerce site, which has plagued Alibaba and other e-commerce platforms, and attacked the competitors by chance. Jingdong said the company could more effectively ensure that consumers buy genuine products on their website, partly because they manage their own stocks.

In July this year, Liu Qiangdong, founder of Jingdong, said that for consumers who value quality and quality, Jingdong is their preferred online shopping platform in China.

Some people see Liu Qiangdong's remarks as a mockery of Alibaba.

Sign exclusive sales agreement with brand

Unlike Alibaba, Jingdong mall will buy goods directly from suppliers and sell them directly to consumers.

In addition, Jingdong mall also has a third party platform, which allows the brand to sell its own products, and then pay commissions to Jingdong mall.

Alibaba does not sell products directly, but only connects buyers and sellers, making money through advertising and services provided to millions of sellers.

According to a high-end Italy

The business consultant said that the brand chose to open a store in Jingdong mall instead of Tmall mall because Jingdong provided them with a written guarantee that it would clear the fake and shoddy products of the two brands of the company from the Jingdong mall.

Jingdong mall said it would protect the intellectual property rights of the brand regardless of whether the brand had been opened in the Jingdong mall.

The most attractive brand of Alibaba is that its website can bring huge sales to the brand.

Earlier this year, Alibaba persuaded the Swedish outdoor brand Fjallraven to sell exclusively on Tmall mall, while Alibaba promised to bring more traffic to the Arctic fox Tmall flagship store.

Arctic fox has been opening stores in Jingdong mall and other Chinese websites.

"We have some better conditions", such as better location in Tmall mall and lower advertising rates, said Lin Mingwen, general manager of China's regional outdoor company, the Arctic Fox company.

Lin Mingwen also said he expects arctic fox sales in China to grow by 5 times over the same period last year.

Lin Mingwen disclosed that before the two sides reached an exclusive sale agreement, the price of arctic fox's products on Tmall mall was lower than that of other Chinese websites, and the lower price was to participate in the promotion of Tmall mall.

He said that with the exclusive sale agreement signed between Arctic Fox and Tmall, the brand has greater flexibility in product pricing.

Alibaba said that the company did not formulate relevant policies, requiring that the price of the brand in Tmall mall must be lower than that of other e-commerce platforms.