360buy fires first salvo in price war
Home appliance retailer promises zero gross profit on big-ticket items in next three years. Rival Suning says it will go lower as Gome pledges 'cheapest ever'
Competition in the mainland's home appliance industry is heating up as major retailers Suning Appliance, Gome Electrical Appliances and e-commerce player 360buy wage a new round in their price war.
"Today, I've made a decision. We will make zero gross profit selling big-size home appliances over the next three years," said 360buy's chairman and chief executive Liu Qiangdong on his weibo microblogging account on Tuesday.
Firing the first salvo in the price war, he said 360buy would cut prices of television sets, refrigerators, washing machines and air conditioners from yesterday morning, making sure they would be cheaper than what was being offered by Suning and Gome's bricks-and-mortar shops and websites.
Suning and Gome, the two largest home appliance retailers in the nation, fired right back.
Smaller online retailers like Dangdang and 51buy also joined in, pledging to adjust their prices.
The high-profile price competition generated a lot of interest, with many consumers waiting by their computers from yesterday morning expecting to see bargains.