While I have no doubt that e-commerce in China will continue to expand tremendously, is it reasonable to believe that DANG or any of the other smaller players will survive once Alibaba goes public? Seems to me that Alibaba will use its IPO cash to expand itself and operate on super thin margins and any competition will be driven into oblivion. And why would Alibaba even bother with a DANG buyout? If Alibaba wants anything that DANG has (e-reader, warehouses, distribution network), it can just wait until they are driven out of business and then pick that stuff up for next to nothing.
it is good to keep an open mind on your investments (among other things!) and you have some legitimate concerns. don't let the eejits worry you.
there is more than on player in other markets, right? i mean everyone "knows" amazon has the best prices but other consumer websites still flourish. maybe vips and dang merge and become the biggest? maybe dang does so on its own. i think it is still too early to forecast a winner but believe DANG si undervalued for its potential.
If you are long like you said then you want it lower to buy or you think we are kids and you want to scare us. A long never posts a message like this. Be honest and nice. I know innocent people who believe MB...
I'm no shortie, I'm a very paranoid long. Does DANG have some customer loyalty built up that can carry them through when Alibaba turns on the jets? I read on this board a couple of months ago that there was a documentary playing in theaters in China about the founders of DANG that painted them as national heroes and that the film was very popular, but I was unable to find further information. Was there such a movie? As far as the WalMart analogy goes, a lot of Mom and Pops get squashed when WalMart comes to town, and I'm hoping that doesn't happen to DANG if Alibaba becomes synonymous with eCommerce in China. If anyone has any ideas on why people will continue to use DANG instead of Alibaba, please post 'em. If DANG can just hang on to their current market share, that's good enough for me because I understand that will ultimately translate into big gains as the huge Chinese population stampedes onto the internet over the coming years. Thanks.