Online retailer Dangdang is facing a
boycott by suppliers over its pricing scheme, The Beijing News reports. According to Dangdang, this month it
priced a hot-selling sofa-bed at 290 yuan (US$35.8), far below the offline
retail price of 1398 yuan (US$173). This had a noticeable influence on sales
through traditional channels, and offline distributors banded together to
demand the producer stop supplying Dangdang. On the 28th, the producer bowed to
pressure by other distributors and cut off supplied to Dangdang. The producer
had previously notified Dangdang of its intended action, but Dangdang said that
it did not intend to raise its price, since it had enough inventory to cover
sales temporarily. Dangdang is reportedly in talks with the supplier to resolve
the issue.
Link: http://www.thebeijingnews.com/news/2005/1130/05@081125.html