360buy, which raised $1.5 bln in latest financing round from diverse funds including Russian venture capital fund Digital Sky Technologies, came under attack by Leyou COO Gong Dingyu for its low-price strategy. Founded in 1999, Leyou is the biggest Chinese franchiser of maternity-baby-children supplies. Gong accused 360buy of using such strategy to squeeze out the competitors, calling for a boycott of 360buy and Dangdang‘s market-at-expense-of-revenue mode in an effort to contain unfair competition.

As for fellow customers, I find 360buy’s pricing more attractive than Newegg China and Joyo most of the time. 360buy caters to customers’ need with transition from online 3C store (like Newegg US) to online department store (like Amazon US), supplying a wide range of categories, from 3C products, personal care stuff, home supplies, household appliances to maternity baby products, shoes and books audio & video products. Such move would put 360buy under direct competition with vertical entities such as Leyou, Letao (online shoestore like Zappos) and Dangdang (still impressed many people as online bookstore).

I personally knew a lot of people from IT industry who turned their back to Joyo and Dangdang because 360buy lured them away with abundant products choices and reasonable price. You might still remember the book price war between 360buy and Dangdang that happend late last year, when both knocking down their price in an attempt to win over customers, since both of which were well funded. Liu Qiangdong, the founder and CEO of 360buy said on SinaWeibo on 17 March that “I’ll fire the whole books audio and video products department if you ever gain a penny of gross margin in 3 yrs or a penny of net income in 5 yrs.”

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Ben Jiang

Listener of startups, writer on tech. Maker of things, dreamer by choice.