This year's e-commerce "Double 11" promotion has just begun, and a controversy about the lowest price on the entire network has a strong smell of gunpowder. "Now I finally understand why the price of Hua Xizi could not be lowered before." On the 24th, JD.com purchasing and sales "Chu Sanfeng" posted on WeChat Moments that because the JD.com price of a certain Hai's oven was lower than the price of Li Jiaqi's live broadcast, he suddenly received a lawyer's letter from the brand Fang Hai's, stating that the subsidy fee was entirely paid for by JD.com. But then Heidegger issued a statement refuting the "low-price agreement" and "paying out of pocket" mentioned by JD.com.

Did the platform pay for the "Double 11" wool out of its own pocket or did it "borrow flowers to offer to Buddha"? Behind many related hot searches, JD.com, Li Jiaqi, and Brand Fang all fell into the “lowest price on the entire Internet” Rashomon.

“The lowest price on the entire Internet” caused controversy and many parties responded

"Chu Sanfeng" said that he was complained by the brand because the JD price of a certain Hai's oven was lower than the LJQ (Li Jiaqi) live broadcast price, which violated the so-called "floor price agreement" they signed with LJQ and required him to pay huge liquidated damages.


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"I would like to ask whether the 'choose one' behavior of individual super anchors that harms the long-term development of brands and harms the basic rights and interests of consumers for their own selfish interests has constituted a violation? Can relevant departments manage such 'pseudo-lowest prices on the entire network' behavior and give everyone a clean and transparent shopping environment." "Chu Sanfeng" said.

According to multiple media reports, a staff member of the Hai's brand said: JD.com was forced to follow the price of Li Jiaqi's live broadcast room and deliberately lowered the price of its products. Multiple communications with multiple parties failed, resulting in the Hai's brand facing the risk of breach of contract and huge compensation. At present, JD.com has restricted the backend permissions of merchants, and basic operations cannot be performed. Live broadcast items are forcibly added with a 50% discount.


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However, regarding this matter, the company behind Li Jiaqi told Sino-Singapore Finance that Li Jiaqi’s live broadcast room and the Hai’s brand have not signed a so-called “reservoir price agreement” and have never asked the brand to make any choice. The pricing power of the live broadcast room products lies with the brand.

On the evening of the 24th, Hai's Oven also issued a statement stating that the Hai's brand had not signed any "minimum price agreement" with the channel pointed out by JD.com's sales personnel. In order to ensure the rights and interests of consumers, the Hai's brand priced the oven during the Double Eleven period according to the marketing rhythm of each platform, and set the lowest sales price across the entire network.

The focus of controversy: Who will pay for the subsidy?

The reporter noticed that the controversial point in this matter is whether JD.com has the pricing power for branded products and who will provide the subsidies?


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According to "Chu Sanfeng", "The subsidy this time was completely paid for by JD.com. I was able to achieve the current price under tremendous pressure and at the expense of the gross profit of the entire department."

However, the statement issued by Hai's Oven stated that the losses of each oven sold at a reduced price will be borne by the Hai's brand, and it is not subsidized by the platform as claimed by JD.com.

Regarding pricing power, JD.com believes that JD.com has pricing power for JD.com’s self-operated products. Hai's statement stated that the agreement signed between Hai's brand and JD.com clearly clarifies that business operations must be based on consensus between the two parties, and JD.com does not have the right to modify prices without authorization.

What do you think about this?

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