Electric business industry Performance "Gold" insufficient price melee hard to endure

Since the beginning of the year, the price of electricity dealers have gone through several rounds of fighting. The summer is approaching, the electric business giant all joins the price to rush the queue, the price is frequent, lets the scope be big, causes many industry personage to call June the electricity business history strongest price war.
However, in the reporter's opinion, price war is a kind of market strategy, but can never become enterprise's development strategy. China's huge consumption base has helped push up the geometric growth and sustainable development of the market size of the electric trader (merchant to user), but the conventional method of price warfare is unsustainable and difficult to evolve into a "protracted war".
Take Jingdong as an example, the purpose of losing money is probably to profit from the capital market. has already been questioned by the industry, Jingdong to store the name of the big promotion, claiming to let 1 billion yuan, in fact, for a short time to pull up sales, in order to make beautiful financial statements, paving the road for listing.
Under the premise of limited market capacity, price is a major factor driving consumer's buying behavior. In this respect, other big electric business also had to resort to fight, otherwise can only wait for the share is eaten away, at the same time, some of the electric dealer's promotional war is wool, occasionally come up with inventory special products to attract attention.
In recent years, the consumer's attitude to online shopping from "taste" into the "normal", the mainstream network mall sales to record new highs, but its performance is not enough gold, the financial situation is not optimistic. Jingdong Mall recently released earnings show that 2011 its income of 21.2 billion yuan, gross profit margin of 5.5%, net loss of about 5%. According to China's E-commerce Research Center monitoring data show that 2011 Gome's electronic Commerce entity Bowser Network and Gome Online mall a total loss of nearly 400 million yuan, Dangdang 2011-year loss over 200 million yuan.
It is one of the direct reasons for the low price competition to increase the profit. The electric business platform itself lacks the brand additional value, while pays attention to the marketing method but cannot solve the commodity homogeneity the soft rib, at the same time, the low price competition brings the negative effect also to be obvious. For the BoE, the company is eager to launch the listing, but also based on capital pressure and investors return requirements.
Since the second half of last year, the overall decline in the scale of electric business financing, the attitude of the VCs more cautious, corporate financing difficult to increase. In this context, the power of the dealer to play a low price card is also helpless, but also includes the economic downturn in the liquidation of inventory considerations. If the macroeconomic growth rate continues to decline, a large number of electric dealers are expected to be closed because of broken capital chains and deteriorating operating conditions.
At present, the development of China's electric business is still in the initial stage, the early web site to invest a huge amount of money and time to cultivate user consumption habits, "price change" to become the main competitive measures. However, when the market is growing more rational, the means of winning users will no longer rely solely on lower prices, but will be more inclined to provide a full range of customer experience. Competition is like a marathon, and the contestants end up with a lasting power.