360Buy Criticizes Dangdang for Unfair Competition
Tencent Tech, 12/15/10
Liu Qiangdong, CEO of Beijing-based IT products B2C e-commerce platform 360Buy, announced in a microblog posting today that Chinese B2C e-commerce site Dangdang (NYSE: DANG) had used shut-out tactics, leaving 360Buy virtually unable to compete. "Over the past year since 360Buy began preparing to sell books," the update read, "Dangdang has used its monopolistic advantages, sending messages to basically every publisher forbidding them from supplying us with books on pain of having Dangdang terminate their agreement. After a year of lengthy, hard talks, there are still some publishers who don't dare sell books through 360Buy."
Liu added that Dangdang had sent out a letter to publishers yesterday which many publishers subsequently forwarded to him, stating that Dangdang "…is a listed company with large cash reserves, while 360Buy has only a small purse of money raised from angel investors, through which it will soon burn through." The letter warned publishers not to "back the wrong team" and to immediately stop selling books through 360Buy.
Editor's Note: For more background on this topic, please see "360Buy Cuts Book Prices for Year-End Holiday" MD 12/14/10 issue.
Keywords: Liu Qiangdong e-commerce Internet B2C 360buy Dangdang DANG
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