Dangdang Single-day Orders Triple in Singles Day Promotion
Netease Tech, 11/23/12
In a November 22 interview in Chengdu, Dangdang (NYSE: DANG) CEO Li Guoqing said that the Chinese B2C e-commerce site saw three times as many orders during its November 11 "Singles Day" sale as on ordinary days, and received four times as many visitors as usual.
Dangdang currently has RMB 1.4 bln in cash in its accounts, Li said, meaning that the site can continue to lose money for another year and a half based on the Q2 and Q3 2012 losses of roughly RMB 100 mln per quarter. Li hinted that even if rival B2C e-commerce platform 360Buy succeeds in raising USD 300 mln, the funds will only last the company through the end of June 2013.
Next year, Li said, Dangdang intends to stick to its "high-quality department store" strategy, and will shift its focus to filtering brands and merchants, developing client services and improving "last-mile" order delivery service, and making new inroads in the mobile internet space.
The company's warehouses are mostly rented at present, Li said, but Dangdang could consider buying land to build its own warehouses if suitable locations were to present themselves. Li is also considering establishing Dangdang's Southwest China headquarters in Chengdu or Chongqing as a spur to Dangdang services in the region. "We have been in contact with parties in both cities," Li said, "but we haven't decided on where we will ultimately register the headquarters."
Keywords: Li Guoqing e-commerce Internet strategy B2C Dangdang DANG Singles Day logistics marketing
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