The price competition is constantly escalating, and there are many small and medium power dealers failing

Source: Internet
Author: User
Keywords Electrical business

According to the economic reference news, at the moment, the domestic e-commerce market is showing "ice fire twofold Day": one side is the "Hot promotion", "the lowest" and other bargain signs flooded the network, some electric business enterprises announced that the price war to hit next year, on the other side is the E-commerce site "Le Cool Days", "Amoy Japan" and so on closed, More than half a year has more than 10 companies (consumer) Web site closed.

From the capital enclosure to the loss of operation, the vigorous price war to bring to the electricity business? Electric business enterprises and analysts said that from the Internet segmentation industry trends, electric business platform will also experience from the "barbaric" growth to the industry concentration of the process of increasing. In the next five years, there will be no more than three manufacturers of electric platforms.

With energy-saving subsidy policy landing, digital 3C and other summer promotions have been opened early. Jingdong Mall announced first, will borrow shop celebration launched "Normandy great Benefit War", the cumulative benefits will reach 1 billion yuan.

Li Bin, an executive vice president of Suning and Tesco, said in a microblog that "the whole network compares with the month", "The Battle of the Year, the beginning of the hunger game." Suning related head of the interview revealed that its price war "at least from this year to next year."

The price competition has been escalating, but there are many small and medium-sized electric dealers behind the collapse figure. After Alibaba and Japan SoftBank cooperation "Amoy Japan" son stop sales, Baidu and Japan Electric Business Lotte Multinational joint venture "Le Cool Day Mall" recently issued a notice, confirmed that the formal closure of the Taiwan.

Recently, the headquarters of the online supermarket in Beijing, "after Matt" customer calls in the working day has no answer. Since March this year, the focus of "fast-moving consumer goods" site part of the goods into a long-term break, and then exposure has been closed.

and the "1th shop" and said "network Super double Male" "Large warehouse", many of the child pages have been invalidated, point to the classified ads link. According to the website announcement, the online supermarket began to cancel rebate in last September, for refund, then suspended business.

According to China's E-commerce Research Center data, as of last December, domestic enterprises such as business, Consumer-to-consumer, etc., have reached 20,750. And since last September, already has "Le Cool Day", "Amoy Japan", "Big Warehouse", "lazy fellow" and so on more than 10 more large-scale shop closes, covers the footwear class, the luxury site and the online supermarket price war's massive investment has already made some electric quotient embarrassed heavy burden.

According to China's E-commerce Research Center data, 2011 China's online shopping users up to 203 million people, an increase of 28.5% year-on-year, and the number of electrical business enterprises increased by 43.1% Year-on-year. Some electric business websites compete for users to throw low price cards, but because of the ubiquitous competition means and the core value is missing, it is easy to staying difficult dilemma.

Suning Tesco related responsible person thinks, from the future trend angle, the electricity merchant is not the pure Internet enterprise, in the final analysis still is doing the retail business, relies on the investment capital to attract the attention to occupy the market share, through the low price eliminates the competitor's price war to be impracticable. Among them, one of the key factors to win the enterprise is whether it has a good logistics distribution system. For example, Suning easy to purchase in the logistics has a scale advantage, from the three or four-line city to one or two-line cities have existing network distribution.

At present, the pure electric business also saw the importance of the logistics distribution system, for example, Jingdong Mall said will increase investment to improve their logistics distribution system.

Experts believe that in the coming period, the market will continue to the elimination of competition, market differentiation will depend on who can first form the user's brand dependence.

Liu Jiawei, Senior Advisor to Hai Enterprise Consulting, argues that price wars cannot be a mere "brush money" irrational competition. From the development of markets such as the United States, the market share of the top 10 leaders of the electricity market is nearly 90%, of which two to three companies have larger scale advantages.

Liu Jiawei that the main disadvantage of the competition is that the supply chain, especially the size effect of the procurement and logistics, makes it lose the cost advantage of supporting the price. This reflects from the side of the electrical business products to customers "viscous" shortage, consumers easily because of price changes and choose other platforms. This should cause the current still pursue "win by quantity" The electric business leader vigilance.

Compared with foreign electric power quotient, the problem of single competition means is very outstanding. In the foreign electricity market, proprietary design products and value-added services have become an important source of profit for foreign electric dealers. RBC Capital Research shows that the cumulative operating profit of a reader of Amazon is more than 100 USD/piece, profit margin of more than 20%. Some dealers have worked with mobile client developers and manufacturers to provide a cross-platform platform for commercial operations.

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