Price war

China’s food delivery price war is harming restaurants, as reported by CNBC AI News. Xibei’s founder, Jia Guolong, reveals concerns about unauthorized discounts and eroded pricing power. He argues that platforms’ unsustainable tactics damage the restaurant ecosystem, generating waste and squeezing profits. Jia pleads for pricing autonomy amidst regulatory intervention from SAMR urging rational competition. Despite this, reports indicate promotions continue, leaving restaurants struggling for survival.

A price war in China’s online food delivery market, involving Meituan, Taobao Flash, and JD.com, has led to widespread “free” promotions. This triggered a surge in orders, especially for bubble tea, but also resulted in significant order abandonments. Shops are facing losses as unclaimed drinks are discarded. The situation highlights irresponsible consumption, food waste, and the need for consumers to consider their actual needs before capitalizing on promotional offers, urging respect for labor and resources.

Alibaba and Meituan ignited a fierce food delivery price war with deep discounts, driving massive user traffic and causing temporary outages for Meituan. Goldman Sachs projects this competition to peak in September, potentially leading to significant losses for major players but a strategic gain in user engagement for cross-selling. Pinduoduo is positioned as an opportunistic winner by abstaining from the promotion war.

Gree Electric’s Market Director, Zhu Lei, stated that Gree’s focus on technological advancement, rather than price wars, has stabilized the air conditioning market for over 30 years. He contrasted this with other sectors experiencing intense competition and criticized brands that prioritize crushing rivals over sustainable profits. Lei urged Chinese manufacturers to uphold “Made in China” and lead collaboratively.

The early 2010s in China witnessed a fierce e-commerce battle between JD.com and Dangdang for book market dominance. Driven by ambition and strategic price wars, led by Liu Qiangdong and Li Guoqing, JD.com ultimately prevailed, prioritizing market share over immediate profits. Recent interviews reveal the intensity of the rivalry and the emotional toll it took. The rivalry’s conclusion is symbolized by Li Guoqing’s use of JD.com for food delivery, signifying a decade-long competitive saga’s end.

BAIC Chairman Zhang Guofu warns of the detrimental effects of China’s EV price wars, criticizing prioritizing affordability over quality and sustainability. He sees this trend as a “dead end,” urging a focus on creating trustworthy and valuable products. His comments echo concerns voiced by industry leaders like Huawei’s Richard Yu and Geely’s Li Shufu, who also highlight the risks of compromising safety and quality through unsustainable price cuts.

Huawei’s Yu Chengdong and other Chinese automotive industry leaders warn against price wars, emphasizing the value of quality and innovation over unsustainable low prices. They advocate for value competition, prioritizing product features, customer experience, and ethical business practices. This stance reflects concerns over declining quality, compromised service, and the long-term risks associated with relentless price cutting in the automotive sector.

The People’s Daily criticizes the ongoing price war in China’s EV market, highlighting concerns about its long-term impact. The article urges automakers to shift focus from price to value, emphasizing technological innovation and high-quality offerings. It observes a transition towards a value-driven market, driven by consumer demand for advanced features and personalized options, advocating for sustainable growth over short-term gains and inflated valuations.

Amidst China’s EV price war, automaker executives debate the price-value relationship. GAC emphasizes customer experience and lifecycle cost. BJEV’s chairman stresses profitability challenges, warning against prioritizing short-term gains over quality, safety, and long-term sustainable growth. He critiques unsustainable practices, advocating for innovation, high-end markets, and ethical business conduct, emphasizing customer trust as vital for the industry’s future.