Whether the price war of electricity dealers will continue

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2012 was the most vicious year of the price war for electricity dealers, at the same time, another round of price war also exposed some problems, consumers to the electricity dealer price war sincerity issue, the relevant departments will be in 2013 to monitor the price war, Gome began to price war "rethink", And there is the price of the butcher said that the Beijing-East is a claim that the price war has basically ended. There seems to be signs that this year's electricity price war is not going to last, and in fact, this year's price battle for electricity dealers has been on the brink.

Who wants to fight the price of electricity dealers?

Whether the price war will continue to need to figure out, "who" to continue the price war. From the recent position of the electric business, in addition to the Beijing East do not want to continue the price war, other electric dealers have the intention to price war to the end. Store 1th, easy to the news has already challenged Beijing east, Gome's "electric Business eulogy" is also to launch the April promotional activities to do the bedding, suning easy to buy the April youth Storm theme promotional activities have begun.

Traditional retail giant Suning, Gome, backed by Tencent's easy to hear, backstage is Wal-Mart's No. 1th store, the four electric companies have their own plans, but the same goal, play similar, "price war" is the most simple, rough, effective way of attack.

Why does the electric dealer continue to carry on the price war?

First, know who will continue to play the price war this year, the next step to understand is why to continue to play price war. The four major electric dealers for the purpose of price war is consistent, is the hope that through price war to promote sales performance, enhance the market position, competition for market discourse, for the future long-term market competition lay a good foundation. In addition, even if the Beijing-East can not be defeated, but also to shorten the gap, affecting its IPO effect.

Last year, the market volume of electricity dealers reached 1.3 trillion, accounting for 6.2% of the total retail sales of consumer goods, online impact on the line is already visible. The electric dealer is for the general trend, more and more offline purchasing power transfer line, the fight between the electric business enterprise not only competes for the original market, but also robs the new market which because of the industry rapid development brings, this part of the market, you do not, naturally will be robbed by the competitor, but the price war is competes for the market the most effective competition way.

Second, the electricity business price war is not simply to see that, only price competition, price war another big role is the public relations competition. After another round of price wars have been constantly receiving media attention, access to media attention can affect more consumers.

If the electric business enterprises really want to give consumers affordable, as long as the price of goods to the lowest, and then silently sell goods on the line, why Gesanchaiwu use a lot of manpower, material resources, financial resources to launch the so-called electricity dealer price war? Because today is the era of overcapacity and information explosion, the attention economy of buyer's market, Not to attract the attention of consumers enterprises are likely to be eliminated by fierce market competition. In particular, the major electric enterprises want to Lord, do not make some movement out how can attract the attention of consumers?

Third, Jing Dong CMO Lan Ye said: "Now, the electric business has gradually entered the stage of price competition and customer experience phase of the transition period, and finally will enter the brand competition stage." "This statement is reasonable for Jingdong. Objectively speaking, from the shopping experience, Jing-dong is superior to its competitors. In the website user experience, the commodity distribution speed, the website SKU richness and so on, Jing Dong after 9 years of accumulation, has done the basic work. Jingdong early through the price factors attracted a large number of user support, now Jingdong brand has formed a certain degree of credibility, if you want to buy four thousand or five thousand of 3C products, even if the price of East Beijing than other sites more than 50, consumers will choose Jing Dong. Early competition in the industry is particularly sensitive to price factors, but when the enterprise forms the brand, the user experience is superior, the market purchasing power strengthens, the price factor to the consumer decision-making influence will drop. For the Jingdong, the price competition stage and the customer experience stage transition period.

But for, Easy news, shop No. 1th, Suning, Gome, because in the user experience to slightly weaker in the Beijing-east, so the price war is still the most effective means of competition with Beijing-east. A little brain will not take their own weaknesses to compete with the strengths of rivals, this is not a field bogey horse racing. "Price war is only the end of wishful thinking," Xun operations director Pan Biao words accurately describe the current situation of the price war.

So, in addition to the BoE do not want to carry out price war, to ensure profits and strive to profit in the quarter, for next year to prepare for the IPO, the other four big electric dealers have no reason not to continue the price war. The so-called "price war harmful industries healthy development, the consumer is also unfavorable argument", are the rhetoric of vested interests, price warfare is a common means of market competition, especially in the early days of the industry, all hope that through price war occupy the market position, and finally grasp the market initiative. And the price war will gradually stabilize with the market pattern, the frequency of occurrence gradually reduces.

Who's the price war with?

Now that the price war will continue, the next question to make clear is who to fight the price war with. To small Broad is the electricity dealer price war commonly used technique, Jing Dong originally in the book market to challenge when, last year in the Electric Appliance Market Challenge Su Ning, each year will challenge the cat several times, the Beijing east to the small broad price war tactics to play incisively and vividly. Beijing East Just online book business, need to open up the book market, so the Beijing-east to the war when, and when the war, Jingdong book business in the industry. Last year Liu Micro Bo challenged Suning, Suning easy to buy, the battle both sides have income, Jingdong electric business started, Suning easy to buy is through this war established the industry status.

A slap does not sound, the so-called price war must have opponents, this year, the major electric companies want to price war on the fire to Jingdong, easy news, store 1th, Gome have launched an attack on the east, and Jingdong has never made a response, because Jingdong clearly know to respond to each other price war against their own little advantage. This year, the BoE did not want to participate in the price war, but also to respond to the smaller than their own opponents, so that will only bring more attention to their opponents, no meaning to their own.

Jingdong price war is very shrewd, he promoted the time, hope that rivals are to besiege him, so he will become the core price war, the focus of public opinion. His initiative to start a price war will inevitably choose a stronger than himself, or in a certain field stronger than his opponents. In contrast to their smaller rivals, Jingdong usually ignores them. So in April, the core of the price war will not be Jingdong, Beijing east of the challenge also let its competitors anxious, but the electricity market competition enterprises how many, the lack of jingdong will not affect the price of the electricity business continued.

Conclusion

Easy news, store 1th, Suning, Gome, there is no reason not to continue the price war, whether the price war is not determined by Beijing. The electric business industry is still in the growth period of rapid development, for the four big electric business, this year is the key industry card position of a year, the market performance is particularly important, this year's price war is bound to continue, the industry to complete the shuffle, pattern formation, market stability, price war has gradually died down

April is Su Ning, Gome's big promotion month, this month's price war has already had the tipping point, the easy news and 1th number shop again participates in, did not have the April electricity dealer price to be equally likely to have the Beijing east.

Author/Wang Liyang electric quotient researcher