CIC Consultant: Electric dealers get together to sell rationally

Since the price war last year, the electric business enterprise once died down, seems to have the meaning of post-war recuperation. However, the calm of the lake was "special selling" stirred the waves. For a time, "special selling Time" to become the target of the pursuit of all businesses are the new darling of the electric business enterprises. Since April this year, after every customer test water brand special sale, Jingdong, Taobao, when, a shop and so are ready to launch a special sale channel.

Where customers join hands with Li Ning launched brand special selling, in just 10 hours, products are snapped, when the introduction of "tail goods sinks", focus on the high-end brand under the line of special sales, 30 percent caps to attract many consumers; Beijing east to launch the "Flash Regiment" channel, the demand for authentic brands and ultra-low prices, trying to compete for "special selling" market cakes; There are also days of the cat's cost, the Amazon's Z benefits, poly-Shang, a mall and many other special sales army.

The clothing industry Ultra high stock is the electricity Shangte sells the big heat the important reason. For the apparel industry, inventory every year, clear inventory is also brand business perennial work. Compared with the past, the apparel industry this year's inventory scale is very large, business to inventory pressure and power in the past can not be compared. Statistics of the National Bureau of Statistics show that up to the third quarter of 2012, the apparel industry above the size of the enterprise product inventory reached more than 250 billion yuan. High inventory makes many businesses into the plight of cash flow shortages, and thus affect the continued profitability of businesses, and supply and marketing system shocks.

Consumers ' preference for inexpensive goods also provides a solid market base for "famous selling". Why the domestic E-commerce development so fast, one of the key factors is the price of products, and offline compared with the real store, has a strong price advantage. Price is still the most important reference index for domestic consumers to select commodities. In the electronic commerce market, who has the price advantage, who has the customer. "Famous special selling" to ultra-low discounts to provide consumers with authentic brand-name products, naturally favored by consumers.

Only products will be positioned in the brand special selling, is the best business model of E-commerce. In many electric business enterprises for the scale, market share to promote and at the "loss of profit yell" at the same time, only goods will have been in the market segments quietly realize profitability. As of March 31 this year, the only goods will operating income of 310 million U.S. dollars, an increase of 206.8%, to achieve a net profit of 5.8 million U.S. dollars. and a number of shops, Jingdong Mall, when the domestic many E-commerce enterprises still walk in the road of loss. Only product will be the model gradually by the market, by the electrical business enterprises recognized.

In addition to adequate supply, strong demand and the existing model of profit, the electric companies in the special selling market also has the flow of consideration. "Special sell" big hot this year clothing brand inventory extremely high, the background, this state is not long-term sustainable. At present, each electric business enterprise is looking for a specific background, quickly cut into the market segments, improve traffic and occupy a certain market share, for the enterprise's profitability and business integration to provide a broader space. From this point of view, the special selling market must be hot, the market competition must be fierce.

The competition of e-commerce has always been fierce and brutal, and the price war of 2012 has tested the strength, endurance and viability of the merchant. "Scale" has always been the driving force for the development of the industry, but also the electric business enterprises at the expense of profits to fight the important reason of price war. In scale and profit balance, profit is relegated to the secondary position. However, in the current situation of e-commerce development in China, E-commerce needs to shift from the scale-driven to the right path of profit-driven to ensure the health and sustainable development of the industry.

If the electric business enterprise wants to do well the special sale market, the key lies in the authentic famous brand and the low price two aspects. However, both have only scarce resources, the competition for brand merchants to become the current main work of the electric business enterprises. The intensification of industry competition will inevitably make the discourse power of electronic commerce reduce, like the department store joint model, there will be homogenization and the trend of further decline of Maori. Impetuous, follow the trend is not conducive to the industry, the long-term healthy development of enterprises.

Further we should be aware that E-commerce is the product of new technologies and technologies, representing the power of innovation. Innovation and change are the characteristics of e-commerce, with the rise of new technologies and models, it is inevitable that new needs, new markets, and new profit space will be spawned. It is one of the important characteristics of e-commerce to continuously surpass and constantly subvert. Therefore, electric business enterprises should always keep the spirit of innovation, and technology synchronization, a total market dance, in the search for opportunities in the change, in the competition continues to grow.

In addition, the electric business enterprise still must pay attention to build its own core competitiveness, to ensure in the constant change and fierce competition to maintain combat effectiveness and achieve development. At present, Taobao and Jingdong have formed a strong competitive advantage: a sound logistics system and platform scale advantages. This makes it in the competition and the development can quickly form the scale advantage, thus obtains the cost and the price superiority. At the same time, the establishment and improvement of logistics system also improve its service level.

(Author of the research Center for Industry and Policy, CIC, Shen Zhengyuan, circulation industry researcher)