Hasee's computers have been taken off the shelves in Suning's stores nationwide and a representative from Hasee explains that the company has recalled its sales workers in Suning and stopped supplying goods to the retailer from March 1, 2009.
Hasee and Suning signed a cooperative contract in 2008 and the contract expired on February 28, 2009, but the two sides have some disputes about the renewal of the contract. The Hasee representative says the dispute lies with Suning, which requires increasing its profit share rate by 50%. Hasee says that this requirement will lead to a price increase of its products sold in Suning to ensure its profitability, so the two sides can not reach an agreement.
Hasee says it always insist on a unified price strategy in its nationwide channels. Apart from Suning, the company also cooperates with other local electronics retailers, but Suning is reportedly the only nationwide channel partner of Hasee.
According to a representative from Suning, the two sides are still negotiating the cooperation's specifics. The representative says Suning's standards of selecting brands include the cost effectiveness of the products and consumers' acceptance of the products.