23 August 2019

Internet giants clash in Women’s Day price war, paper says

Alibaba Group, Baidu Inc. and Tencent Holdings Ltd. (00700.HK) are again engaged in a price war to promote their online-to-offline (O2O) services on Women’s Day this Saturday, the Beijing Times reported Friday. Alibaba’s fired the opening salvo by offering a promotional package that allows its app users to buy movie tickets at 3.80 yuan (62.15 US cents) each or rent out a karaoke room at 3.80 yuan per hour. Not to be outdone, Baidu, through its group-buy website, announced on Thursday it is making similar but cheaper offers at only 3.70 yuan per movie ticket or per-hour rental of a karaoke room. Baidu said it is returning to its customers more than 100 million yuan in profits through the promotion, adding that Alibaba is only spending tens of millions yuan for its Women’s Day offers, according to the newspaper. Meanwhile, Tencent also launched a limited-time promotion on its WeChat mobile shopping platform in a bid to grab business from Alibaba, the report said. Group-buy and travel services are likely to be the key battlegrounds for the online retailers, an analyst was quoted as saying.

– Contact HKEJ at [email protected]




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