Beverage Supplier Lolo Cuts Off JD.com Amid Spat
Yicai Global
DATE:  Jul 13 2017
/ SOURCE:  Yicai
Beverage Supplier Lolo Cuts Off JD.com Amid Spat Beverage Supplier Lolo Cuts Off JD.com Amid Spat

(Yicai Global) July 13 -- Hebei Chengde Lolo Co. [SHE:000848], one of China's well-known beverage producers, snubbed leading Chinese online retailer JD.com Inc. [NASDAQ:JD] yesterday.

The Hebei-based firm has decided to suspend supplying the e-commerce site, claiming that it substantially marked down Hebei Chengde Lolo products without seeking permission in advance.

An investor begged the question, why is it taking so long to restock? Some classic Lolo products have been sold out on JD.com for several days in July.

The drink company responded, saying JD.com slashed prices on Hebei Chengde Lolo goods without prior consent, and forced Hebei Chengde Lolo to continue providing products, News.cn reported.

Online prices lower than market ones have caused disorder, the report said. This has affected the interests of Hebei Chengde Lolo shareholders, so the firm decided to cut off JD.com.

JD.com has not commented on the matter yet.

JD.com and other major Chinese e-commerce platforms often hold promotions to attract consumers. Suppliers are forced to comply with the platforms' decisions as they have tremendous leverage and influence consumers.

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Keywords:   JD.com,E-COMMERCE,Supplier,Sales Promotion,Lolo