The price war goes into overdrive

At present, the domestic e-commerce market is showing "ice fire double Days": One side is "Summer Promotion special", "full network of the lowest" and so on the network of bargain signs, some electric business enterprises announced that the price war to hit next year, on the other side is E-commerce site "le Cool Days", "Amoy Japan" and so on have closed, more than half a year has more than 10 customers (enterprises to consumers ) website closed down.

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.

Electric business Market "ice fire Double Day"

"300 to send 200", "Price return to 10% red envelopes" ... Into the June, all kinds of promotional signs are still in the sales "off-season" flooded the network. From the country's largest consumer site Taobao cat to Suning, Gome and other retail companies, the new and old electric dealers are scrambling to throw promotional cards.

Reporter recently from Beijing East, Suning, Gome and other enterprises to understand, with energy-saving subsidy policy landing, digital 3C, such as summer sales have been opened in advance. Jingdong Mall at the end of last month announced that the June will borrow shop celebrates the "Normandy Grand War", the cumulative benefit will reach 1 billion yuan.

Li Bin, an executive vice president of Suning and Tesco, said in a microblog that June was its "whole net parity 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, this focus on "fast-moving consumer goods" site part of the goods into a long-term break, 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.

Promotion Easy staying difficult

In the fierce competition in the industry, is not a strong capital, won the price war enterprises can become the ultimate strong?

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.

"Price advantage is not sustainable, the outstanding problem of e-commerce development is how to break through the price level competition." Zhu Chunyang, an associate professor at Fudan University, believes that the ultimate reliance of the electrical business is on product and service quality and innovation ability, only to create a better experience and price advantage than the entity model, can form the consumer trust, reduce the current high marketing costs.

At the same time, complete logistics and ancillary services is also the key to win the platform of the electric business. Lu Xianbo, Deputy Secretary-General of China Electronic Chamber of Commerce, believes that the development of logistics, delivery and after-sales service is still immature, these are restricting the development of electric business "short board", urgent to strengthen.

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.

The person in charge said, at present, Su Ning buys the price war not to lose money, at least is the small profit margin, flat or slightly deficient. Can do this, mainly because there is a traditional retail basis of suning easy to buy compared to the pure electricity business has cost optimization advantages. First, the procurement scale cost is superior, compared with traditional electric Shang Sunin easy to buy 5%-8% of the cost advantage; The second is the operation, for the pure electric business, the pressure of the logistics cost accounted for only the total cost of suning is less than 7%; third, in the marketing aspect, there are traditional retail gene enterprises in the cost system optimization higher than the pure electric business enterprises.

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.

The playoffs will continue

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.