Publisher and Electric quotient channel's game upgrade: Dangdang 0 yuan Promotion

Editor's note this year, the price war between the electric dealers seems not so high-profile last year. In fact, every business is not idle, from last year's public rack turned into a "dark war", and this kind of dark war is more reflected in a category of price war. Not long ago, Dangdang launched the "seventh session of the Network Scholar Festival" book Price Frenzy, played "400,000 kinds of books 50 percent caps" "E-book 0 sales promotion." Then, Dangdang's rival Jingdong Mall also follow suit, also will be the ebook adjusted to 0 yuan.

Dangdang's 0-yuan sales promotion is quite effective, according to statistics, Dangdang's traffic reached 5 million times that day, but there are still many consumers do not download to the satisfaction of the ebook. However, there are divergent views on the "E-book 0 Promotion" event in the industry. Some people think that this is a "self-inflicted suicide promotion", offending publishers, and not completely pleasing consumers. But there are also those who argue that when a lot of traffic is exchanged at negligible cost. What kind of game of interest has happened? This reporter launched an in-depth interview.

On the morning of April 17, 2013, Li Ling, who often buys books online, suddenly discovers that Dangdang is doing "0-yuan ebook download" Activities, including "to us will eventually die of youth" and other popular best-selling books in its list. Excitement, Li Ling found a few want to read the book, however, after entering the download page, the page is stuck. Finally, she only downloaded a set of "Huan biography", Spellbound.

At the same time, grinding book CEO Shen also received staff reports, learned that Dangdang "ebook 0 Yuan" event. He immediately decided: to suspend and when, Jingdong, Amazon three big books on the platform of E-book business cooperation. Subsequently, many publishers have followed up, and when the cooperation of the sale of E-books began to stand down.

The partnership, which was originally a partner, has suddenly stopped working, highlighting the growing tension between a book dealer and a publisher that is both co-operative and struggling.

Publishers feel like they're being fooled.

"When as a" 0 yuan promotional "may be based on their own interests, the loss of profit yell pull flow, but we as the content side, there is no gain, also get no explanation, feel like being fooled. ”

"We were not notified and no publishers were notified of the event." Yue Read the culture President Hou Kai told the Chinese Business newspaper (blog, micro-BO) reporter. They gave the first time when the "tough" question was sent to the mail, but until the beginning of May, they did not get when any explanation and compensation. "When as a" 0 yuan promotional "may be based on their own interests, the loss of profit yell pull flow, but we as the content side, there is no gain, also get no explanation, feel like being fooled. ”

It is understood that publishers and Dangdang in the E-book business signed the cooperation Agreement and the paper book business is completely different. "In the E-book business cooperation Agreement, only the sale of a book to sell the proportion of the two sides, and pricing is ambiguous." "Shen, founder of the Mill Iron book, told reporters.

"E-books cannot be charged according to proportion, and e-books must be the same as paper books, and pricing rights should be in the hands of publishers." Shen pointed out that, when signing an agreement with the network sales platform, the E-book pricing power is not clearly defined. And this Dangdang "Xianzhanhouzou" "0 yuan Promotion", really let Shen aware of the issue of e-book pricing rights.

Before, publishers were too busy to focus on the pricing of E-books simply because the sales and profits of E-books were slim. According to Shen revealed that the grinding iron annually published 800~1000 category books, there will be half that 400~500 kind of books will be produced into E-book products, and the market is far less than 400 kinds of sales. While claiming to occupy the online book sales 50% market share of Dangdang, but not publishers do the preferred E-book business partner. From the 2012 statistical data, Dangdang's book SKU is 710,000, e-books only 50,000, the latter sales of only millions of yuan, for its 5.19 billion yuan total revenue, not a fraction.

Specific to each publisher, and when the cooperation of the E-book category is relatively small, the income can be neglected. "We sell very good paper books, made into E-books, when the top sales in the thousands, when the E-book pricing is basically under 30 percent of the paper book, such sales are meaningless to us." Hou Kai said last year's best-selling book, adapted from the novel "The Tang Palace Beauty World", which was based on the same film and television drama, had a digital reading of 15% of its total income, which is already outstanding in similar books.

Hundred Nets founder, the original "China book business newspaper" editor-in-chief Cheng told reporters: "The vast majority of books of digital reading income, are low can be ignored." Moreover, many channels of digital reading, including China Mobile and other carriers to account for more than 80% of the remaining 20% is the major portal sites and business channels. ”

"Business channel, we and when, Amazon, Beijing and east have cooperation, the business channel, we and Taobao Amoy Citibank shop, watercress and so are also in cooperation." Other than when, other channels can with us a certain size of the monthly settlement. Shen Bare. "Price war on the industry has damage, in the paper book, no matter how low your price, you and I paid the bill, on the surface I do not or can not clearly calculate the loss." However, the ebook you sell 0 yuan, I can not get a penny. "Shen said that in the book industry," The channel is king "does not set up, the paper book Pricing power is still in the hands of publishers, the two sides of the game point is only the issue of discounts. All along, when often active or passive to carry out the book price war and a variety of major promotions, only the electrical business their own behavior.

"Stopping the E-book business has little to do with publishers because e-books do not involve the core interests of publishers at all." Cheng three told reporters. "China's e-book market is immature, and publishers have not made the best quality content in E-books." and "The development of e-books will be washed away by the traditional publishing industry," "publishers are Dead," such sensational slogans are false propositions. Including the world's most mature e-book market in the United States, bookstores did fall, but the publishers are alive and well. ”

Dangdang did it first.

Dangdang's price war and ebook 0-yuan promotion, to a very small price for a lot of traffic and income, but the damage is China has not started the E-book market.

The media will be when the E-book 0 to read as a "self-inflicted suicide promotion": "At present, the response is: The reader is very high, the electrical business is very happy, the publisher is very angry." ”

"Dangdang and publishing house to promote the development of e-books is a consensus, for specific operations, there may be a number of different views on this development process to seek common ground, we believe that we are acceptable." Yumen, senior manager of Dangdang Marketing, said to reporters.

Surprisingly, although the end of the choice to suspend and three of the Electronic Business platform, but the Shen in the interview showed a little understanding of Dangdang: "0-dollar event is not isolated." I understand that the electrical business in the vicious competition of the market environment to do such a thing. While this behavior has no value for the long-term development of the e-book market, it may be a thirst way for them to get out of trouble in the short term. ”

"When it's Robin, Amazon is too disciplined. This is almost the consensus of the industry. In fact, the network has just been acquired by Amazon, when it is relying on the Robin play, in the market to kill a way out. According to Cheng recalls, when a "Hyper-war alliance" was ever made--asking publishers to give an exclusive supply--when the bulk of the purchase, the volume could exceed the publisher originally expected to be two of the total volume of the Amazon, and then depress the purchase discount. By the low cost of purchase and price war, when the market share or slowly overtook the Amazon.

In the process, publishers to dangdang more "love and hate intertwined." New Century Publisher marketing department director Chang said to the media, "We love is the network sales of large shipments, low return rate, short cycle, can make the publishing house quickly expand the scale of operation;" Hate is the electricity store bully, low discount, profit margin is thin, return point high. No pity, no profit. ”

"Price war, ebook 0 yuan promotion ... When you dare to do this, or because you have a good relationship with the publisher. When the mindset is, how big a deal? In an industry, a business chain, we are dependent relationship. As for the ebook 0 Yuan promotion, the publishers ' interests would have nothing to lose, when you want to tell them in advance, they certainly do not agree, or better to do it first. "Shuai, an executive at a publishing company, analyzed the 0-dollar ebook case. He told reporters that Dangdang and publishers have been such a cooperative and conflicting relationship, driving down price promotion, publishers have been opposed, but they dare to do so. Their mentality is that publishers won't take them.

However, in Cheng three, "Dangdang's ebook 0 yuan, endless." "On the surface, this Dangdang price war and ebook 0 Yuan promotion, at a very small price for a lot of traffic and income, but the damage is China has not started the E-book market." In his view, under the current market environment, the three big platform of the book dealer, originally did not give the content side--publisher and author bring how much income. In the ebook aspect, the content side originally had the courage to be very small, uneasy dare not do. Now, the Electronic Business Platform ebook a free, content side more afraid, more afraid to Do (ebook). "China needs to have clear rules of the game in order to transition to digital publishing." Only a strong integrator can motivate publishers. In the current situation, publishers can choose not to play, do not play without loss. "Shen said.