Alibaba’s Jack Ma spoke at 2013 IT Pioneer Summit held by Shenzhen government yesterday. As usually, he refuted price wars in e-commerce sector. This time he threw out a new analogy saying that participating in price wars is like using a machine gun as a stick, and those participants ” are applying information technologies and ideas but with management thinking and skills so out-of-date as those used for last century… Thus in today’s world, e-commerce players are fighting in price, not value”.

He addressed it again and again. What’s true is his company has been making money from paid search, display ads, payment & transaction commissions, financial services, among other things, that have nothing to do with pricing.

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Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com