The price is suicide service is the future

See a news that Jingdong Mall recently launched a 7x24-hour all-weather telephone service, a total of 400 telephone customer service agents, and also plans to increase the number of telephone customer service to 600. In this respect, a media reporter asked me: Jingdong Mall to do 7x24 All-weather telephone service What is the value? What are the effects on the industry?

Here is a brief discussion of some of your own views. First of all, make a list of my point of view: First, the business will become the mainstream of E-commerce, and Consumer-to-consumer become the complement of E-commerce; second, what is the core of the competition? Finally, China's e-commerce is still in the initial stage of development, All-weather telephone service shows that the competition of enterprises tends to be rationalized.

The Consumer-to-consumer is bound to go beyond the mainstream

Do not talk about this all-weather telephone service, or to see the recent action Taobao. As an E-commerce service provider that occupies more than 80% per cent of China's consumer-to-consumer market, what has Taobao been doing recently? There is news that Taobao will be operating independently Taobao mall in November, and the domain name are ready.

Taobao transformation of the momentum has been very clear, since the introduction of Taobao electrical Appliance city, Taobao tasted the sweetness of the consumer, but also for its development mall did a test. The next step is to separate the goods of various categories into a mall to operate, and Taobao become a big platform. Remember MA in the establishment of Taobao soon said "Free is the most expensive", because consumer-to-consumer this free model will bring a lot of integrity problems, service problems, although Taobao launched a number of related mistakes, but it is difficult to finally solve the problem.

But similar to Jingdong's business model can evade these problems very well, this is necessary for the long-term development of electronic commerce. It is natural for the business to surpass Consumer-to-consumer to become the mainstream of e-commerce in China.

The price is suicide

So, what does a business-to-consumer compete for? Some people say that the price is also competition. In fact, competition price should be the initial stage of the development of the business, but also the development of E-commerce immature performance. As long as online shopping become a habit, online buyers no longer worry about the integrity of the problem, no longer worry about the quality of goods, prices are no longer the decisive factor, because online shopping can save a lot of time to select goods.

So the net goods of low price is only the product of the stage, if blindly pursue low price, the result that end result is one defeat three injury. Why is the user injured when the supplier is injured, the net buys the platform is injured, the user is injured? To cite the simplest example, the Gome Su Ning has a big price war, and price war is based on the sacrifice of supplier profits, suppliers in order to make money have to think of ideas from products. Many people complain that the washing machine is not used in the 90 's. This is because the price war makes the product profit drop, the supplier has to reduce the quality in order to obtain the profit.

Spell Price is a kind of low-level market behavior, the business enterprise if continue to rely on low price to snatch market, it is Zeize practice. On the contrary, to abandon the price competition, return to the essence of commercial competitiveness, through increasing the construction of e-commerce infrastructure, thereby optimizing the user shopping experience, to provide a better network shopping services, is the key to shaping E-commerce Word-of-mouth and brand.

Spell service will promote the maturity of E-commerce

I have always had a point of view is: The current e-commerce in China is only in the primary stage of development, from the mature still a long way to go. The latest data show that in the third quarter of 2010, China's online shopping market transaction size of 121 billion yuan, an increase of 76.9%. Compared with the growth of the market in the three quarter of 2010 years ago, the growth rate of quarterly trading in China's online shopping market slowed down gradually in 2010.

Then see Suning 2010 first half of the revenue is probably 36.05 billion, the annual revenue will be more than 80 billion, Gome's revenue is slightly weaker than Suning, probably 24.8 billion yuan more points, the annual revenue can reach 50 billion, only this two home appliance chain revenue is more than 130 billion, completely larger than the entire Chinese online shopping market scale.

So from this set of data to see China's e-commerce is indeed a "baby", only when the net shopping scale to reach the overall market size of more than 10% can be said to be mature, so China online shopping has to go a long way. At present, the biggest problem of online shopping is integrity and service, through the construction of logistics, warehousing, customer service, as well as transformation of the client, can enhance the credibility of online shopping, so that more people to join the online shopping.

Jingdong Mall in the infrastructure construction of the early investment, the construction of a nationwide warehousing system, costly construction of information platform, self-built logistics distribution system, 211 arrival, the national door-to-door pick-up, and then to today's 7x24 24x7 telephone customer service, in fact, in order to improve the quality of service to prepare, Jingdong Mall will call this "Beijing Dongda service Strategy".

It is wise to shift the focus of online shopping from price warfare to service warfare in advance, this will be conducive to shaping the network to buy brands, so that more netizens trust and choose to buy online, when the network shopping become and shopping as the habit of the time, online shopping is ripe, online shopping enterprises also profitable.