Doubts cast on Wal-Mart price war in China
Ann/ China Daily
Wal-Mart recently waged its largest ever price war since its presence in China 11 years ago. However, many consumers cast doubts on the real purpose of this retail giant's price campaign.Beginning July 5, all of Wal-Mart's 80 shops gave a discount up to 20 percent to more than 1,000 items, mainly foodstuffs, according to insiders. It is the first time in Wal-Mart's history that it has cut so many items' prices. The move suggests Wal-Mart is eager to lure more customers in China, a market in which it has not enjoyed the competitiveness it has at home. However, the price reductions are not attractive enough, and some discounted products' prices are still higher than those in other markets. A package of 120-gram Lays potato chips is priced at 7.5 yuan after a 45 percent discount, higher than that of Wumart, another supermarket chain store in Beijing. Meanwhile the price of one package of Qiaqia sunflower seeds is 5.4 yuan in Wal-Mart, but it only costs 4.8 yuan in Carrefour. "Our 'Every Day Low Prices' strategy can not ensure buyers get goods at the most favorable prices," said Dong, who emphasized Wal-Mart's weak distribution system can not help reduce cost.
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