Liu Qiangdong Jingdong and Alibaba price war inevitable

recently, for the country’s top two Internet giants, respectively, show their muscles". Whether Jingdong or Alibaba, in the earnings results have achieved steady growth. On the electricity supplier turnover, Alibaba is about five times the number of Jingdong, and in terms of gross profit ahead of (Jingdong). However, in terms of net income, Jingdong is two times the Alibaba.


at the same time, in the earnings conference, Liu Qiangdong made it clear that: between the Jingdong and the Alibaba of the price war is inevitable. Since entering in 2016, for the major Internet business platform, the price war frequency and size showed a downward trend. In particular, Alibaba and Jingdong, are emphasizing the level of electricity supplier logistics services. For example, Jingdong try UAV delivery, Alibaba is to strengthen the coverage of the rookie network and technology investment, that is, Ma Yun hopes to weaken the competitive advantage of Jingdong through intelligent logistics.


, however, according to Jingdong and Alibaba’s latest earnings report, the top two Internet Co have accumulated about $10 billion in cash flow, which is clearly enough to support any price war between the two electricity providers. The Jingdong, although the group scale income presents the tendency of expansion, but the growth rate of the Jingdong and the Alibaba show be roughly the same trend. In other words, for the $about 30000000000 market capitalization of Jingdong, and $240 billion compared to the Alibaba, the gap is still large. Jingdong need to expand the market through price war, especially in the face of Suning, Gome and other opponents, the price war is a common means to weaken the small and medium competitors.


of course, for now Jingdong, a comprehensive price war has not played up the necessary, after all, a quarterly loss of more than a quarter of the Jingdong need to give investors a satisfactory earnings. However, for a single category of goods, Jingdong has sufficient funds to compete with other domestic electricity providers.

among them, the most typical example is the number 1 shop and Tmall compete for online supermarket. June 2016, Jingdong bought a lot of assets from WAL-MART’s 1 store. Until August 8th, 1 shop finally sent a great use in Jingdong. On this day, 1 shop announced a $3 investment in the last 1 billion months, the purpose is to launch a price war in the field of the supermarket, and the main competitive object, apparently the industry’s strongest rival Tmall supermarket. In the view of shop No. 1, I hope that through this price war camp in East China blocking Tmall supermarket, 2 times in 2016 and achieve sales target to achieve Tmall supermarket.


finally, in general, for now the Jingdong executives frequent transfers, shop No. 1 as the core of the price war is just a start. Liu Qiangdong’s former girlfriend in the return of the, Jingdong mall CEO candidates to be determined in the background, Jingdong also need to use the

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