Internet Book Stores Compete for Discounting

Major `Internet Bookstores` are concentrating on enlarging the scale.

Yes 24 and Wowbook are holding 30 percent off event. In addition Morning 365 launched `Yes 24 + 1 percent, guarantee the lowest price`, Aladin `50-30 percent off plus double compensation for the difference to the lowest price, ` and Libro `Special 50 percent off`. As the scale of the events grows, they seem to make a cutthroat competition.

The reason why the Internet bookstores are competing so eagerly is that the movement of the crust in the related businesses is unavoidable this year. When some companies are merged, the company of larger sale can take advantageous ground.

Cheong Jin-Wook executive of Morning 365 forecasted, “every company thinks that this discounting structure cannot last long, but no one can break away from the discounting competition. Intensive taking over, merger or strategic cooperation will be made this year. ”

The movement of territorial change becomes more and more clear with the rumors of the merger between major firm and minor firm in Internet bookstore circle.

The law prohibiting the discount of book price encourages this movement. As they are discussing the `fixed book price system` that limits the discount rate of on-line bookstores to 10 percent, Internet bookstores are trying to raise market share and sales before distinctiveness of them from off-line bookstores `discount` disappears.

An official of Internet bookstore said, “the difference of fund among companies will be soon exposed that their business policy would move to distribution system and contents from discounting. ”

Heon-Jin Lee mungchii@donga.com