Haier tilts to win e-commerce joust, with new platform
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Haier Group, the country's leading appliance maker, launched its e-commerce website Friday, but analysts doubt it will become rapidly profitable.
The website, named 24dq.com, is jointly run by Qingdao Ririshun Electronic Appliances and Wuhan Industrial and Commercial Household Appliances, two Haier subsidiaries.
By press time, calls to Haier Group went unanswered.
Previously, some electronic product manufacturers including TCL and Hisense launched online sales platforms, showing a rising consumer trend to purchase these appliances on the Web.
Unlike its competitors, 24dq.com does not only sell Haier appliances, but also those by other brands including TCL, Sanyo and Midea.
Industry watchers said it was a breakthrough for a traditional appliances manufacturer to set up a B2C website, though Haier may face serious challenges.
"The cost of setting up an online shopping website, such as the cost of logistics, is very high," Chen Shousong, an analyst with Analysys International, an Internet-based consultancy, told the Global Times Friday.
"And the price war of 3C (computers, communications and consumer electronics) products among the B2C websites is very firece. It is very difficult for Haier to stand out," Chen said.
Promotional tactics, such as halving prices, are always key to distinguishing a website from rivals, such as 360buy.com and Taobao Mall, and to create a loyal consumer base.
"Even the traditional manufacturers cannot guarantee the sufficient supplies," Chen said, "A lack of experience and resources in e-commerce is another obstacle."
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