Price war wool, often the concept of a substitution

Source: Internet
Author: User
Keywords Jing Dong

When August 15, Jingdong and Gome, suning fierce fighting is at the same time, domestic appliances business enterprises can not sit, Yongle electric appliance on 16th announced the price war, only to Shanghai as an example, Shanghai Yongle general Manager Yong revealed that in Yongle buy kitchen electrical appliances of the public, in addition to participate in Yongle's one-piece merchandise discounts, Kitchen Appliances 3 sets of subsidies, but also can be superimposed to enjoy the China Household Appliances Association launched the highest 10% special subsidies. In this, the electric business industry has again formed a collective encirclement of the situation of Beijing and east, then this time who wins who negative?

Price war wool, often the concept of a substitution

At noon to see the financial channel interview, many consumers are not optimistic about this price war, also do not think is a suitable shopping opportunity, on the contrary they think it is the business of their own gimmick, is to prepare for marketing. Kobayashi first do not express their opinion, just want to say Su Ning, Gome and Jingdong before the war has been clamoring for 0 yuan to buy, but when the small Lin really into their official website but did not find such goods exist. And they previously claimed that the same product parity is playing word games, if we carefully observe many concepts have been stolen by the manufacturers themselves, such as Canon A4300is in Jingdong price of 1099, in the United States price of 1199, but carefully look at consumers know that the same camera black and blue price is not the same, So there is no one whose price is low, only from these performance, this price war time is certainly not too long. And the opposite Su Ning is also some powerless, when Kobayashi in Suning easy to buy the official online selection of more fiery products ready to buy, the other side but told this paragraph no goods. And that sort of phenomenon is not uncommon. In fact, think also know, who are not fools, it is not possible for the so-called low-cost nominal loss of the lost, especially Su Ning now carrying only 6.7 billion, far enough to repay the supplier's cargo list, the implementation of the price war must be considered.

Beijing East sidelines is helpless, enhance venture capital is the goal

Some things are not to be examined, if we do not believe the above, we can see Jingdong CEO Liu Weibo, is said, to ensure that all the big home appliances in Jingdong than the United States and suning price of more than 10%, a sharp look was awed, Liu Total emboldened still really foot, but Dangdang guoqing see a catch, Straight line and offline prices are not comparable, this time the price war is non-existent. Yes, offline In addition to the cost of sales, there are staff wages, shop leasing and many other costs, so it seems that the line is cheaper than offline normal, not cheap is not normal!

So, we can not help but think, since not to make money, or do not want to participate in price war, then why still put the ring clamor? Kobayashi want this price war, Jing Dong sidelines is helpless, is to seek to continue to survive the helpless, since 2004 into the 3C industry, in the market share has been the dominant, But it is well known that the profit of 3C products is very low, the net profit of Beijing East in recent years is -5﹪, this makes the future development of Jingdong is full of such as uncertainty, and in the first half of 2012 Suning and realized the line of the same price sales, which to the east of the impact is great. Because suning Tesco through the development of the model, in the market share has been a certain breakthrough, the share from 5.3﹪ to the 9.8﹪, which virtually increased the next round of financing difficulties. Under the helpless, only by price war can the confidence of venture capital be established and the purpose of further financing can be achieved. So this time, jingdong in the big household electrical appliances market launched a price war, is to snatch higher gross margin of large household electrical appliances market, to give more room for their own development, because once suning this year to sell a successful 8 billion of corporate debt, then the development of Jingdong will be a fatal blow.

A diversion, Suning aims to innovate the sales model

But the price war has already started, regardless of Jingdong, Su Ning, gome in the mind is how to think, face on the project or to do, after all, consumers are not so good cheat, according to Youdao shopping assistant monitoring data show, as of the beginning of the price war 15th, the average prices of East Beijing 3496 Yuan, compared to 10 o'clock down 53 yuan; The average price of suning is 3298 yuan, which is 22 yuan lower than 10 o'clock. And in 10 o'clock in the morning to 11, 1 hours, Beijing East adjustment 19%, suning price adjustment 17%, the decline has been significantly less than the first 1 hours.

The electric business website is after all come up with something to fight, but this kind of hard work behind all have their own consideration, Jingdong is in order to more profitable big household electrical appliances Market March, consolidate the confidence of venture capital, and Suning is obviously in order to put the advantage of their traditional home appliances to play to the end, until kill Jingdong.

And the industry has a different understanding of this, digital home appliances industry observer Liang said, Su Ning this move broke the appliance industry development of the conventional model, set up a unique commercial pricing model, that is, online shopping mall to meet the user's complete experience needs, and online orders, store experience, Can give consumers a completely different feeling, and more importantly, physical stores can also borrow power to obtain greater sales. New seven Days Electric network CEO Zuoyingjie is said, suning this move is quite a diversion, because Su Ning's purpose is to force suppliers pressure in Beijing, to improve the price of jingdong, let manufacturers to and Beijing east to argue, and then suning opportunity to obtain the control of the supplier.

The competition between Jing Dong and Suning is far from over

In Su Ning and Jingdong price war progress in full swing, Su Ning Vice President Li Bin but release information, after this price war Su Ning will not and Jingdong price above the match, also will not follow jingdong any action. Although excessive price promotion will bring great negative impact on the enterprise, but have to admit that the rational price war is the market needs of the means, and the current China's electricity industry reshuffle has not ended, the premature launch of Low-cost promotional range will undoubtedly lose their great competitiveness, and these I think Suning is sure to understand. So the next Su Ning may be outside the scope of the electricity and Beijing to continue the game, and the competition is far from over.

Ps:16 Day, Suning Executive vice President Li Bin added 500 million to 3C digital industry, in this field continues to the Beijing-East game.

No matter what the purpose, or what kind of price reduction means, in the current environment, a two-time price war obviously can not be clearly divided, and we have to do is to observe the time of the east and suning lasting development of the test. Above by the most safe and fast shopping bar http://www.feishengke.com/Webmaster collation sharing, welcome reprint, Thank you.

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.