Lates News

UBS expects the current competitive situation to last at least until this year's Double 11 (Nov. 11). Chen Liteng, an analyst at the Internet Economy and Society E-commerce Research Center, said that the impact of the subsidy war on merchants shows stage differences. In the short term, the surge in orders brings operational pressure: small and medium-sized merchants may face the phenomenon of "exploding orders," but they need to bear part of the subsidy costs, coupled with the sharp increase in raw material consumption and insufficient manpower, which may lead to delayed delivery and reduced quality. In the long term, the industry will accelerate integration. Market concentration will tilt towards top companies with high supply chain efficiency and strong brand power. At the same time, regulatory intervention will force platforms to optimize subsidy structures and reduce the burden on merchants. The continuous subsidies erode profits, and the competitive landscape is shifting from a "capital war" to an "efficiency war." Real winners need to balance user demands for low prices, rider rights protection, and sustainable profits for merchants, rather than relying solely on price wars. (Yicai News).