echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Food News > Food Articles > Community group buying cannot be dumped at low prices to undermine fair competition

    Community group buying cannot be dumped at low prices to undermine fair competition

    • Last Update: 2021-07-24
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

    Recently, the Nanjing Market Supervision Bureau issued the "Notice on the Compliance of E-commerce "Community Group Buying of Vegetables", which regulates the operation of e-commerce platforms and the responsibilities of the "group leader" of group buying groups
    .
    In addition to requiring platform operators to have complete certificates and licenses, take the initiative to file, perform food safety obligations, and accept supervision by various departments, the notice also specifically stated that “not to gain trading opportunities or competitive advantages through unfair competition and thereby harm other operators or consumption The legitimate rights and interests of those involved, especially not to implement low-price dumping at a price below cost, crowd out competitors to monopolize the market and disrupt normal business order

    .
    ” This “Notice” signals that the local government has begun to control vicious competition in community group buying

    .

    In essence, community group buying is an e-commerce model that takes the community as a unit, uses the community as the transaction scenario, and relies on the "group leader" to recommend products to community residents and facilitate transactions
    .
    Although this model has long existed, under the influence of this year's epidemic, community group buying has unexpectedly made amazing developments

    .
    Not only that, community group buying is also regarded as the last piece of "fat" in China's retail industry, attracting various e-commerce giants to join the game

    .

    However, some e-commerce giants have relatively simple and rude competition methods, and one of their commonly used methods is "burning money
    .
    " The more and more sustained someone burns, the more likely they are to win this "group buying war"

    .
    At the beginning, consumers may receive some dividends from price wars.
    Once a monopoly market is formed, consumers may bear the price of price rebounds

    .
    Not only that, those small vendors and small and micro shops that rely on selling vegetables for a living are also the easiest to lose their jobs and chances of survival under the weight of big capital, and thus touch the bottom line of people's livelihood

    .

    According to the 21st Century Business Herald, on some community group buying platforms, 1 cent for a box of eggs, 9 cents for a cabbage.
    .
    .
    Obviously, this price is seriously lower than the market price, which is exactly what Nanjing pointed out that "low-price dumping" "Question

    .

    The so-called low-price dumping refers to operators who sell goods at prices below cost for the purpose of squeezing out competitors.
    This violates market laws and is suspected of violating the provisions of the Anti-Unfair Competition Law and other laws and regulations.
    Competitive methods to obtain trading opportunities or competitive advantages to achieve the purpose of squeezing out competitors to monopolize the market

    .
    This kind of behavior will not only disrupt normal business order and infringe on the rights and interests of consumers, but ultimately damage the entire industry

    .

    It is believed that Nanjing made the first move to control the chaos of community group buying by e-commerce companies, which is likely to cause a chain reaction in other cities
    .
    And this series of actions shows that e-commerce platforms are not an extra-legal place for anti-monopoly, nor are they a breeding ground for unfair competition

    .
    Even new tracks and new outlets must not be brutally expanded, and they must be operated legally and must not touch the bottom line of the law

    .

    Of course, the fierce competition among e-commerce giants in community group buying does not mean that the business model of community group buying is unreasonable, nor does it mean that platform companies should be completely prevented from investing and operating on it
    .
    On the contrary, as long as it meets the requirements of healthy market competition and can meet the needs of the general public for convenient life, community group buying will naturally be favored by the market and consumers

    .

    In the final analysis, for Internet companies, don't always think about taking shortcuts, or even chasing profits at the expense of basic people's livelihood, or using unfair competition methods to achieve the goal of occupying the market, but rely on business models and core technological innovations.
    To win the market

    .
    Only in this way can the goal of "win-win" between enterprises and consumers be achieved

    .

    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent Echemi's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.