Home Appliance Network Purchase a year or two after the price war to continue to fight the inflection

Absrtact: Li Bin Yan soldier Shangui first electric business industry August to reproduce the sale of home appliances sales, Su ning, Gome, Beijing east again. Su Ning claimed to be 8.18 to promote the three major electric business festival, Gome released ruthless words to fully surpass Suning easy to buy Li


Yan soldier Shangui first


electricity industry August reappearance of home appliances sales to play special activity upsurge, Suning, Gome, Beijing east again. Su Ning claimed to be 8.18 to promote the three major electric power business festival, the United States to release malicious words to comprehensive beyond suning easy to buy, line under the price overall lower than Jingdong. Jingdong Mall insisted that the channel price advantage, defying challenges. Compared with previous years, the business of home appliance sales this year, the role of electric power channels play more important. Recently, the China Electronic Information Industry Development Institute hosted the 2014 (third session) of the National Grid to buy the peak forum held, south all reporters from the forum learned that in the first half of 2014, the National Grid market size reached 83 billion yuan, an increase of 56.6%. More than 10% of the sales of various types of electric dealers Mobile phone sales accounted for more than 16.5%.





if the net purchase penetration rate of more than 10% is to judge the main channel of important indicators, three major electrical appliances channel to play "group"?




How long will the
price war last? When does the industry inflection point come? In this regard, the South are "Cloud Weekly Roundtable Forum (down)" invited the Vice president of Jingdong Mall Bing, Gome Online chairman Guixian and Suningyun Executive vice President Li Bin three cafes, sit, the debate in the National grid to buy the reverse attack space.





War: The United States and the Soviet Union against Jingdong





suning Tesco anniversary on 18th into the outbreak phase. According to Suning published data, as of August 18 18 o'clock in the evening, the peak of the site activity at the same time the number of online more than 13 million. South reporters learned. Compared with 8.18 in the past year, Suning and Tesco are full together, red children, PPT V and third party merchants to push preferential purchase, shop Street, full group buy benefits, the global purchase, bank exclusive, mobile phone side exclusive Six special sessions, a comprehensive coverage of the PC end, mobile end, store end, intelligent TV end, the front stretched. "The main is to make the" 8.18 "to become with the day cat" Double 11 ", Jing Dong" 618 "one of the three Indosasa, strengthen the industry position of the first-line electric commodity card. "Close to Suning's supplier said to South reporters.





Prior to August 11, suning "Hundred Days battle" preheat sensitive period, Gome President Wang Junzhou to the group management sent an internal mail said, Gome group's second half of the strategic goal is the online comprehensive beyond suning easy to buy, Gome line under the price overall lower than Jingdong. Gome Online Chairman Shangui first announced that "your compensation" the scope of a comprehensive upgrade, put malicious words to the group of employees found within the system price of three consecutive times higher than the Beijing-east, the responsible person immediately pack up and leave!





from August 15 to 20th at this point in time, Gome Online also announced the launch of the "8.18 Peak War", the simultaneous introduction of a price than the service "smart buy", the range of prices, including large appliances, 3C and other products, through technical means to automatically show the results of gome online goods and jingdong parity.





Jingdong Mall as the other protagonist of the war, seemingly not in a hurry to fight, but in the fierce battle on the eve of the release of its Q2 earnings, to the opponent played a punch.





: Electrical Appliance Dealers Enter the era of two strong hegemony





for Gome, Su Ning, "8.18" should be a ripe can not be cooked battle.





from the Sino-Hong Kang data show that in the first half of 2014 flat-screen TV sales accounted for 15% of the overall, air-conditioning sales accounted for the overall 10.5%, refrigerator sales accounted for nearly 13%, washing machine sales on line to reach the overall 12.3%, Mobile phone sales accounted for more than 16.5%.





from the electricity quotient pattern, the Beijing-East and Tencent strategic cooperation as well as the Beijing-East Group successfully listed let B 2C electric business field into two strong hegemony situation. "2014 first half of the home grid purchase Analysis Report" shows that in the first half of this year, the sales accounted for the overall electricity grid market 58%, everyone is accounted for the overall online large household appliances sales of 62%. Cat in the overall electricity market accounted for 32%, in the field of large household appliances, it accounted for 23%.





from the overall home appliance sales market, the first half of this year's life is not easy. Statistics show that the color TV industry, retail sales fell 9 Year-on-year, 3%, retail sales fell 15.6%, refrigerator retail sales fell 8.5%, retail volume fell 10% year-on-year, washing machine sales fell 1% year-on-year, retail volume fell 4.8%.





These are dangerous signals. "Before only two oligarchs, now is a number of separatist situation, the electrical business has at least accounted for a lot of home appliances enterprises 20%-30% sales accounted for, the product price is low, the channel profit has a great impact." "Home appliance generation operator New seven days CEO Zuoyingjie to South all reporter said."





although, "at present, the electricity merchant is only a flank, but when the enterprise invests the degree to be more and more big, the resource matching change may bring the electric business channel the huge development." Zo, a brand director of China Yee Kang, predicted to the south, 2016, the electricity market in the home appliances sales accounted for about 30%.





tactics: Challenge Jing Dong 3C Digital Base Camp





The situation is clear, the home grid to buy the offline store has constituted a real threat. How will traditional home appliance manufacturers and sales platforms respond?





Home Appliance generation operator New Seven days CEO Zuoyingjie said, in the fierce competition, Gome began to counterattack, mainly reflected in the price strategy. "Jingdong and the sky cat more tend to online shopping, Gome on-line under the market is relatively large." "Zo that, the rise of the electric business Channel, to the home appliance Enterprise is a very good study opportunity." "Because the traditional appliance enterprises are manufacturing-centric, but with the development of Internet and E-commerce, home appliance enterprises have learned to product and user-centric." He said that in the process, enterprises began to invest more and more resources to understand consumers, to provide more to meet the user's technology and requirements of the concept of products. Gome Online Chairman Guixian said to the south, Gome online firmly to false Price said no, never first rose and then drop. "We hope to keep the advantages of home appliances at the same time, to challenge the Beijing-East 3C digital stronghold." and Suning on 18th launched a marketing product-"flash", involved in the flash shot mainly in the market, the user base of a large number of goods.





: South reporters Cherius intern Lurinshan





Topic 1




How long will the "price war" be
?





Bing: The price of Jing-dong, only from this topic, it shows that Jingdong is the benchmark of low prices. This cheap is not to fight the price war, but the channel innate advantage, low price is natural reaction. In everyone's electricity, the cost rate of the online channel is lower than that of the offline channel 15%-20%. This is from two points of view. On the one hand, from the point of view of the channel merchant, the cost of the electric dealer is less than 8%, and the cost of the traditional household appliance retailing is basically in 16%-17%, and the channel is more than the cost of paying the rent and the promotion staff. Therefore, from the merchant point of view, at the same level of profitability, the electricity business than the real shop 8% cheaper. On the other hand, from home appliances manufacturers, compared to online sales, they have more input in traditional retail outlets, including prototypes, booths, promotions, and so on. Small household electrical Appliances online and offline sales situation more complex, dealers in the middle of the profit, compared to large appliances, Small household electrical appliances in the dealer's sales price than the physical store 15%-20% cheaper, or even up to 50%.





online and offline There is no way to hit the price war, two different business models, the basis of efficiency is different, "price war" proposition does not exist.





and Jingdong hit the same price, the line under the channel will be huge losses. This may be the case at some time or in individual models. But we still have competition because of industry monopolies. In the past, including strong channels and brands to lock prices in high, jingdong and these brands exist game. Price war is not suicidal destruction, Jingdong hope that based on the advantages of online channels of low prices to maximize the benefit of consumers.





Shangui First: "Gome online" online parity more convenient, this time the range from big home appliances to mobile phone computer digital domain. The low price of the emboldened from the group's nearly 30 years of precipitation of the supply chain integration capacity. Gome has a supply chain advantage, mainly reflected in the procurement price. Gome is not only the size of the procurement, but also a variety of procurement methods, in addition to conventional procurement, there are O EM, o D M, underwriting custom, step price procurement. To allow consumers to buy cheaper products, as to how long (price war) to play, from now on, Gome will continue to go on.





Li Bin: Price competition is the main melody of the market competition, it is no time, no, no, suning never avoid price competition, but each time to promote suning consider more is if let consumers get really real benefits.





2014 is suning easy to buy strategy implementation year, after 2013 years of strategic layout and the first half of this year's adjustment, optimization, integration, innovation, the second half of Su Ning will turn straight from the curve, into the full acceleration of the fast lane. At present, Suning urgently needs a "devil schedule" to stimulate their own potential, "Hundred Days Battle" is this series of battles. Price war is not just a home electric power purchase field, it involves various fields, throughout the history of Chinese and foreign business development, it can be said that the price war will not stop, but will be more emphasis on consumer shopping experience.





Topic 2





home grid buy "Red Sea" will become "Dead Sea", when the industry inflection point?





Li Bin: The final result of the online shopping war should be the survival of the fittest. Suning easy to purchase 5 years, experienced the Chinese e-commerce from the blue Ocean to the Red Sea change, the current entire electrical business after the feudal chaos, the pattern has been initially clear, the day cat, Suning easy to buy, Jing dong pillars situation basically formed. Electric dealers are still in the Red Sea stage, using the Dead Sea to describe a bit pessimistic. With the development of mobile Internet, especially since 2013, the electric dealer with the whole channel O 2O advantage represented by Suning has been killed from the Red Sea and will move towards the new blue ocean.





Bing: A year or two after the inflection point. Competitive market is the healthy market, the home electric power purchase business will continue, and form a relatively stable competition pattern. The Electric appliance net buys is the irreversible tidal current, the potential is huge, should be a blue ocean. Electricity dealers will become the mainstream. Indeed can not be said to be subversive, online has a unique cost advantages and embodiment, offline also has its space. It is expected that around 2020, offline will account for 40%, from the concentration of view, dispersed in various channels. And the online focus on several big retail networks. Line under the balance, Jingdong will be the largest integrated appliance operators.





we anticipate that the inflection point will come soon. In addition to the share game, manufacturers are also changing to the Internet. These are variables. The industry is indeed at an inflection point, with industry subversive changes expected next year or later.





Shangui First: The electric business industry business situation in a short period of time will not change. Although the cat and Jingdong still dominate the industry's leading share, but Gome online rely on sound development, and fully focus on the development model of home appliances, become the most competitive challenger. Gome online Beyond the Xun network, Amazon China, Dangdang, 1th stores 4 competitors, successfully ranked among the first group of electric dealers. At present, the electric business is still far from who has the ability to unified the era of the river, so, now some people say it is too early to enter the oligarch era. In the future, the situation of the warlords will be the continuing topic of electricity business, the market space is far from saturation, the development of space is huge, the overall industry is positive.





Topic 3





How to reshape the sales channel value of the household appliance industry?





Shangui First: This year, Gome proposed o 2M full channel retail strategy model, including "offline entity shop + Online Dealer + Mobile terminal + social channel", its core is "value platform". The so-called "value platform" is whether to master and have an open supply chain platform, the core value of this supply chain platform is the procurement capacity, logistics capacity and it capabilities. Gome around the O 2M strategy has a broad layout, under the line in addition to Gome's own level, level two stores, but also with the United States, Hualian and other supermarkets, integrated stores, local chain and other forms of cooperation. Gome Online competition Fulcrum is all-round, from sourcing, price, logistics, to after-sales service and so on every link. Gome Online has more than 30% per cent of the goods being customized on a large scale. Especially in logistics, this year Gome has completed the line under the logistics integration. Gome in the country 482 warehouses are our distribution centers, Gome online in more than 60 cities nationwide has been realized "the day to buy the day to send."





Li Bin: suning in the home appliance industry channel value has been in the leading position, in particular, the development of mobile Internet, Suning made clear that the Internet retail as the main body, to O 2O mode and open platform for the wings of the "One Wings" Internet road Map, suning through the store end, PC end, mobile end, home internet side, Self-Service terminals, such as multi-terminal integration, has built a full channel O 2O integrated unique retail mode, let Suning into the consumer's home, put Suning into the consumer's pocket, consumers can shop, online, in the hands, at any time, anywhere, the heart of shopping, this model in the world of retail, is also unprecedented. Competitive Fulcrum, Suning original "shop + Dealer + Retail service Provider" full channel O 2O Cloud business model, specifically around the "one wing" layout of the store cloud, financial cloud, it cloud, logistics cloud, operating cloud, knowledge cloud, such as a series of cloud resource layout.





Bing: As has occupied 58% power grid market share of the mainstream sales channels, Jing-dong has profoundly changed the home appliance sales channels, but also promote the changes in the sales channels of home appliances.





the "Supply chain value" to make the circulation more efficient and cheaper. This is our main contribution. From the whole value chain, before the pricing system is formed around the offline mode, the electricity dealer for the original pricing model shuffle. Manufacturers are also burdensome, the profit model has changed. The pricing benchmark returns to the basis of efficiency and cost optimization.