Why did the price war start?

Suning Appliance Daily K

The price competition between electric dealers is never broken, but on August 15, Jingdong, Gome, suning as the core of a large household appliances price of the "Three Kingdoms kill" is unprecedented fierce, electric business giants have shown "price off the line", but also to the CEO, the official caliber, so that countless onlookers of the public netizens blood. Why does this round of "price war" start? Is the electric dealer for show hype or live ammunition? How much has the island city's home appliance price dropped? How much will the war eventually burn? 15th, reporters multi-party interview, this series of questions layer chrysalis.

"Price war" zone posted on Jing-dong online

15th 9 o'clock in the morning Xu, home appliance industry broke out a huge "price war". The war is by Jingdong Mall board chairman and CEO Liu in micro-blog first point, he "three years 0 margin" of the gauntlet open to Gome, Su Ning launched a challenge, and promised "Jing Dong all the electricity to ensure that the United States than Gome, suning chain cheaper than at least 10%."

Liu also claimed that the BoE will be no less than 3000 yuan monthly salary in the country to recruit 5,000 "U.S.-Soviet" price intelligence, 2 per shop posting. Any customer to Gome, suning buy everyone electricity time, take out a mobile phone with Jingdong client parity, if less than 10%, price intelligence agent on-site verification is true, Jingdong immediately cut prices or on-site coupons, to ensure a cheap 10%. At this point, Jing-dong with sharp offensive, clear to Suning, Gome two big electric business declaration of War.

Gome and Suning quickly confronted. First Suning Tesco executive vice President Li Bin Micro-Bo propaganda directed at Jingdong is "no firm will be in the mouth speculation low price, profit-making yell first consider whether they can live, and said that starting from 9 o'clock 15th," suning easy to buy, including home appliances, all product prices must be lower than the BoE, any netizen found that suning easy purchase price higher than the Beijing-east , we will immediately adjust the price, and give the feedback has been bought twice times the difference to pay. Gome's official Certification micro-blog also followed, from 15th 9 o'clock, Gome Electronics Mall all goods prices than Jingdong mall 5% lower.

15th 9:30, the reporter opened Jingdong Mall's website, with the red word eye-catching marked "home appliances War" area eye-catching in, point open, the area on the page many people straight prices, and "prices back to 4 years ago" and other words to carry out strong publicity, the war party's aggressive obvious.

"US-Soviet" attitude resolutely means death knock

"Our attitude is very clear, give the most resolute counterattack, to the end." "15th 9:40, the reporter contacted the Qingdao Gome Electric Appliance Limited Company marketing manager Lin, through his analysis and the position, revealed the Gome electric appliance to this round price war's determined."

"Whether it is Gome or suning, in the sale of large household electrical appliances brand, type, grade richness and comprehensiveness, is the Jingdong mall incomparable." BEIJING-East commitment to all home appliance prices 10%, can have a lot of home appliances in Gome, suning to buy, in Jingdong shopping malls can not buy, how to talk about 10%? Lin said Gome believes that Jingdong Mall with 3 years of time to go through the United States Gome 10 years away, but Jingdong shopping malls as online retailers or "children", only volume, gome sales can have 100 billion yuan, and Beijing east only 16 billion yuan, 17 billion yuan, "volume gap, It is impossible to decide whether to sell home appliances cheaply.

In addition, Lin also pointed out that Jingdong Mall has been at a loss, and "U.S.-Soviet" years of profit is an indisputable fact, "We are in the challenge, but also waiting to see what the BoE to reduce prices, see how the price of Beijing east to the action landing."

Su Ning Electric Appliance Qingdao Co., Ltd. Marketing manager Dong Guifeng accepted this reporter to interview also said, Jingdong Mall declared "0 profit", suning appliance is not afraid, "after the shop celebration promotions, we in suning easy to purchase on the launch of the" 0 yuan purchase "," 1 yuan purchase "and so on, has long been not a new new. ”

Reporter in the interview noted that Jingdong Mall sharp Challenge, "US-Soviet" both clung to the "death knock" attitude. Developments to 15th 10 o'clock, Dangdang is also involved in the war, because Dangdang sales of large appliances, is gome.

There is another reason for the "US-Soviet" toughness, namely, distribution logistics. Each price reduction, consumers are most worried about is "radish quickly do not wash mud", logistics, sales will shrink. And Jingdong Mall has been relying on Third-party logistics, Gome, Suning is their own logistics companies, from this point, consumers enough to buy large appliances when the security, it seems in the "US-Soviet" more easily satisfied some.

Island City Home Appliance Store is not the slightest sign of trouble

"PetroChina and Sinopec should also play a price war", "if the real estate price war, it is cool" ... Electricity dealer price war smoke four, watch lively netizen extremely excited, from these ridicule is not difficult to see, to the merchant price war, consumer is welcome, because can bring low price affordable goods. Is that actually the case? 15th noon, the reporter visited the island city of Gome, Suning in the city's important chain stores, as well as suning easy to buy, Dangdang gome home appliance area, but found that the price of home appliances "do not", and did not imagine the "you drop Me".

"Know that today's price war, but most of the current activity is still in the past, and did not receive the latest price notice." The sales staff at the Taitung Suning store said the date shown through the price tag also confirms the claim. Gome Qingdao Co., Ltd. 's answer more direct, "there is no need to reduce prices, because our prices would have been lower than Jingdong mall." ”

War burning flourishing, the store's home appliances prices did not slightest hint of trouble, which let consumers a little disappointed. As a result, many people began to question whether this would be the collective "show" hype of the electricity dealers. With the "conspiracy theory" of netizens in a lot of speculation, is it the electric dealer "in the next big game?"

"This is certainly not, from the current point of view, take advantage of Jingdong, the number of clicks estimated to create a historical record." "Lin to doubt that the negative, suning appliances also said" there is no conspiracy. "

"The possibility that the electric business holds the group hype is not tenable." 15th afternoon, the home appliance industry market observation expert, Paller consulting company director Luo Qingxi accepted this reporter's interview, he pointed out that Gome, Suning, Jingdong Mall has been a market competitor, it is impossible to hold a regiment, "and, online with the line is two different types of home appliance sales Model, not a system, not a collective hype." ”

It's easy to compare things.

Electric business promised to let the profit is difficult to judge, Jing Dong said pick up cheap to see luck

No matter what Beijing East for the purpose of provoking a price war, and no matter how suning and gome to fight. The public is most concerned about the three electric dealers who have lower prices? This newspaper comprehensive comparison of three of the physical stores and shops of some commodity prices found that can compare the price of goods is not a lot. Electric business bosses promise to let more bad judgment.

A camera, Beijing east than the real store expensive

August 15 afternoon, the reporter in Nanjing Road suning appliance stores to see the price of some of the hot goods, and the Jingdong Mall on the site on the price comparison.

Take Canon SX240HS camera for example, Suning store promotional price of 2299 yuan, and additional 16G memory card. And the same camera in Jingdong mall price is 2099 yuan, 16G memory card needs to add 79 yuan, that is, the same configuration Jingdong only than suning real store cheaper than 121 yuan. And another Samsung ST200F camera, Jingdong mall price is 1199 yuan, suning staff said that the minimum can to 1390 yuan, configuration includes memory card and camera bag.

When the reporter took the price compared with the prices of Jingdong, the sales staff said: "Jingdong is online sales, we are physical stores, they are a little cheaper point is normal." But you want to, if the price is not bad too much, who would like to buy online? Or in the physical store to buy at ease. "and the entity store will have a lot of activities, the price is cheaper than suning easy to buy, just compare the line, and even take the line up against the real store price, this is obviously a show."

Newspaper trainee reporter Liu Yanting

The network of congested paralysis is difficult to see true benefits

According to the authority of the monitoring, as at 11 o'clock 15th, the average price of goods in Beijing East is 3496 yuan, compared to 10 o'clock down 53 yuan; From 10 o'clock to 11 o'clock within 1 hours, Beijing East adjustment 19%, suning price adjustment 17%, both sides have significantly lower prices than the first 1 hours.

As of 11 o'clock, jingdong 27% of goods than suning cheaper than 10%. In terms of commodity prices, 50% for jingdong cheaper, compared to the first 1 hours increased 3%, 32% for suning cheaper, 18% for the same price for both sides. More users found that the real "three parity" of large household electrical appliances are far from the imagination so much, because the purchase channel is different, Suning, Gome and Jingdong in the distribution of goods there are very big differences.

Suning easy to buy site 10:30 "flat-screen TV" category for example, the first page shows a total of 36 products, only 11 at the same time in Suning and Jingdong Mall sales, while in Gome Online mall, Suning easy to buy and Beijing east at the same time sales of only 9 kinds. And then to Jingdong Mall air-conditioning category "Beijing Chaoyang District," The commodity example, the home page shows 36 products, only 1 are gome, Suning and Jingdong are in sales.

As for the bosses promised "5% lower than competitors", "the whole price reduction of 10%" is not good judgment.

Reporter found, jingdong Mall network operation is still more normal, and suning easy to buy often appear page cannot open and search for products when access failure, the reason may be too many users at the same time, the server can not load. A netizen ridiculed said: "This where is playing price war, Su Ning, Gome website is basically paralyzed state, too funny!" ”

Pick up a lot of cheap to see luck

According to the Sound of the economic report, the price war played a morning, but many netizens found that there is no one can imagine the benefits, someone compared to the Jingdong some products not only not easy to buy cheap, and some products also quietly price increases, from 30% to 100%. In this regard, Liu in the voice of the economic interview, stressed that the dynamic price is lower than easy to buy, regardless of price or price, it is cheaper than easy to buy. He said: "You see the price is a real point of price, this price changes 10 times a day, may be Su ning just changed prices, it seems our price is high, but you have to wait half an hour, our price and cheap." ”

Before Liu said Suning dare to sell 1 yuan, Jingdong will dare to sell 0 yuan, but price war, both sides also maintained a certain tacit understanding, although noisy, but can not let the supplier bleeding, but also to maintain the legal scope. Liu said, don't say we are in the gimmick, Jingdong whole morning 70% of the products have been recorded, as consumers, as long as the cheap, can not say that this is a gimmick, as to whether it is cheaper 50 yuan or 500 yuan, to see your luck.

Link Ministry of Commerce

According to the Sound of the economic report, the relevant regulatory authorities said that Jingdong and Suning are not vicious competition, will not take action.

According to the relevant regulatory authorities, in accordance with the provisions of the State, vicious competition needs to meet two conditions, one in the market has a monopoly dominance, Beijing-east and Suning no matter how the competition, are not up to monopoly dominant position, and the second is low-cost dumping. According to the Supervision department observation, Jing Dong and Suning's shop cost is much lower than the real store, still profitable, is not low-cost dumping. At the same time, regulators say they are also watching the price war, but will not take any action or measures. It is a good thing to be beneficial to the people.

In addition, according to the economic voice of the reporter reported that the Ministry of Commerce will be in the Thursday news conference on the Beijing-east and suning price war stance.

Comprehensive collation of this newspaper (excluding signature)

NET friend "Spit trough" Jing Dong:

"-Café-café-": "It is nonsense, a lot of goods, sound big rain, want to let consumers boycott Jingdong?" ”

"Sports department straight Male": "patted a good tens of thousands of of the home appliance, you have no goods ah, can not AH boss, the light has not enough courage"

"Birds to the South": "The price of a certain model of the refrigerator than the United States suning is expensive, half an hour has not been adjustment." ”

Netizen "Spit Trough" suning:

"Chaoliao": do this kind of flower activity have what meaning, I ordered 3 kinds of goods, all is here temporarily not sale.

"Early summer": Too much, most of the site can not open, how to buy ah? Know that because of this activity, how many consumers lose the trust of Suning.

"Wooden son-Little classmate": the root of the second can't kill a brand camera Ah! The server is going to crash!

Netizen "Spit trough" electric quotient dispute:

Ai Xiao Mo's home: More and more think of the Beijing-East and Suning This price war, is a recreational hype, jingdong many things prices hang there, goods are not, super luxury washing machine is difficult to buy ...

C string Brother: Which is the Beijing-East U.S.-Soviet war. Beijing east is almost paralyzed. Maybe now all the bosses gather together to count the money to play. Just bought soya-bean milk machine, first looked at the east of Beijing, urgent, so or directly to the Suning shop to buy. The result is the same as the price of Nanjing East. But send a cup, and then check out.

PS: Suning small brother said Beijing east to sell a lot of nine Yang soy milk machine is already discontinued goods ~ Ouch! The battle was fought.

Take Anlin: As an ordinary consumer, I think Jingdong Mall self-destruct image, Suning easy to buy a night to become the electric business giant, Liu to their shame. I was first to the Jingdong, point Open Five flat-panel color TV, all hint of no goods. Then went to Su Ning, show out all have goods, half a half-day arrives, immediately orders. I don't care about the nuances of the models or the forty or fifty-dollar difference. I didn't know Suning was a power dealer.

Seasoned gossip: gome: Rice Cooker, jump price 99! Su Ning: I jumped 97! Jing Dong: I jumped 89! Tencent Easy news: I jumped 88.9 ... Supplier: Do I have to live in the factory 40? Consumer: You jump a sprinkle! Pope and journalist Wang

Difficult to find goods, network not smooth caused netizens to question

Suning 1 billion overweight stock price trading

"Not to fight unprepared" is a Shaozhi of the art of war. Jingdong Mall boss Liu Dare to take the lead in declaring war, nature has the confidence of war, Suning easy to buy executive Vice President Li Bin dare to "take", there will be "against" the discretion. But a battle can never be seen on the surface. This price war behind, may lurk a more brutal "capital war", suning 1 billion yuan overweight to stock price counter the market limit to explain this point. Who has the power to burn money, who can be the last winner.

Suning holding and pulling off the stock price

Jingdong Mall boss Liu announced the price war, which is not as good as its Su ning and gome in the electricity business, the two listed companies investors ' confidence has also been hit. August 15 After the opening, the traditional appliance chain double-hung share prices continue to decline. Suning fell 3.4%, the net outflow amounted to more than 200 million yuan; Gome fell 8.33%, down more than HK $1 from the closing price of the last trading session in 2011, and fell by as much as 60% in the year. However, Suning August 15 Noon announcement, the company received the second largest shareholder of Suning Appliance Group Co., Ltd., based on the company's strong confidence in the development prospects, Suning Appliance Group plans in the next three months, the company's shares to increase the total amount of not more than 1 billion yuan.

Affected by this news, Suning appliance afternoon opening, appeared straight up, as of 14:30, the stock price closed to close to 6.47 yuan. Gome did not increase the news to boost shares of confidence, as of the closing still in a slump.

Price war and latent capital war

Some netizens claim that, under the guidance of "high Man", he learned the insider of the price war: behind a conspiracy of malicious shorting. In order to raise the huge amount of money required for the battle of the electric business, Suning electric appliance boss Jindong A total of two-thirds of their holdings, has pledged in Beijing International Trust, China Resources Trust and AVIC Trusts Trust companies under the name, which makes some short institutions see the opportunity. So, some people began to encourage Liu, launched an unprecedented scale of malicious price war, the ultimate goal is to directly suppress the price of suning appliances. As long as Suning appliance's share price is hit to below 4 Yuan, will trigger the supplementary pledge material again the request. If not satisfied, it is likely to trigger a large sell-off of trust companies, and again caused the share price, so that the behind-the-scenes people to make cheap malicious takeover purposes.

"This may be the Su Ning side is anxious to announce 1 billion yuan overweight, at all prices pull rallying stop reason." "The Island City private equity Person Liang said, Su Ning now the circulation capital 5.4 billion shares, increases does not exceed 20 million shares the ratio not to be high, is more is the psychological level comfort, causes the two level market the eye from the financing to overweight."

Is it cheaper to burn money than to cut prices?

Mr. Liu said, Jingdong Mall and Suning both belong to a strong capital behind the protagonist, price war even lead to a short period of large blood, both sides can play.

"Pure price war 1:30 will be difficult to win or lose, but the capital market changes are more intense." "Mr Liang said that the battle of the electric business, the source of looting and market share may be part of the capital war behind may be the main play." "Jingdong Mall is not listed, in the dark, behind a number of VCs support, without their inspiration, Liu may not rashly action, and Gome Suning has been listed in Housetops, so Jingdong Mall has more capital means." ”

Liu, the boss of Jingdong Mall, who provoked the price war, said that today's capital, Bull Capital, Kleiner, Sequoia, Tiger Fund, DST and other major shareholders know how to play suning. The meaning of the words, is to surmount, not afraid to burn money, afraid of the money burn not to fight this battle!

Gome as the old lake, the natural will not show weakness, Su Ning announced 1 billion yuan overweight, there is news that the United States to cash out assets, the capital war has become increasingly trend.

From the current situation, Su Ning, representing the traditional power, seems not to be favored by most brokerages. UBS Securities believe that the future of suning appliance under the pressure of transition, despite the 1 quarter, the company's share price fell about 40%, the consistent expected P/E is close to the historical lowest, but in the light of thinking about buying and Amazon trends in recent years, the company's valuation will continue to bear pressure. Gome's Hong Kong stock price from the beginning of the 2.44 yuan fell to the current 0.67 yuan, the share price shrank more than 70%, from the side of the institutional and investor confidence in its future development.

Reporter Sho Liangwa