2013 Electricity Business theme: Burn money to make money

The electricity business industry shocks the profit red line, the traditional retailing industry is facing the more grim situation: the main business growth is facing the big pressure, the competitor's pace does not have the slightest slowdown

Herald reporter Ting Jinan report

Recently, the 2012 online purchase price index (ECPI) released, the data show that the 2012 net purchase price index to "drop" mainly, according to the forecast, 2013 industry focus will be from 2012 "price war" to "when to achieve profit", online purchase price or will slowly rise.

"The ultimate goal of the enterprise is to profit, price war is only with the long-term strategy of enterprises in a competitive means, integrated shopping platform will achieve balance." "7th," said Eric Kingston, a consultant to the electricity business analyst, in an interview with the Economic Herald.

"Profit" as the key word

Electric Dealer "Three Kingdoms Kill", "Double 11" price war, every festival will "battle" the electric dealer in last year lets the consumer experience the sale promotion madness.

Recently, the largest shopping search engine in China through its price monitoring system, released the 2012 total net price index. The report shows that in addition to January and February, except for a small increase in the other months are showing a different degree of decline, the largest decline of 4.5% in December, so the 2012 was also hailed as the year of the electricity dealer price war.

However, the industry reshuffle behind the price war has also allowed such online purchases to continue. Amoy NET forecast, the profit will replace the price war became the subject of electricity business for 2013 years, so 2013 consumer net purchase price index will rise slowly.

Amoy network analysis that, with the electrical business industry reshuffle success, as well as some of the business requirements for profitability, the business will change the "burn money for traffic" approach, the original price war used to transform into service warfare, quality warfare.

Kingston to the big electric dealers stop price war argument is not very agree, "price war is a kind of electric dealers more accustomed to use the marketing strategy, the current competition between major power companies are still more intense, with the enterprise medium and long-term strategy, price war is difficult to avoid." He analyzed.

However, the ultimate goal of the enterprise is to profit, price war is only means. "Enterprises need to bring benefits to shareholders and society, which requires enterprises to make a balance, to achieve the purpose of profit, price war, although it is a kind of promotion, but not the price after the war, the company's profits will be very direct impact." "said Wang Kingston.

In fact, at the beginning of the year of the snake, electric business giants invariably referred to the word "profitable". Jingdong Mall CEO Liu has said that the four quarter is the company's profit point of time. Every customer Prudential products CEO aged announced, where the goal of this year is to achieve annual performance growth of 50%, for the year to profit. Gome also plans to, its electric platform Gome online profit in the year.

It is noteworthy that, driven by performance, the stock price has risen by more than 600% since its IPO last year. Mo Dai, an analyst at China's E-commerce Research Center, said this represented the beginning of a loss of power.

The price of online shopping is rising?

Amoy network analysis, the second half of last year, the digital industry, the most significant price reduction, become the main battlefield of prices war, clothing, shoe bag price reduction promotion, is also 2012 years to become the important reason for the year of reduction. However, the 2012 frequent electric dealer price war, let some small electric business enterprises in the industry shuffle in the elimination.

Price promotion has achieved the consumer's "shopping spree", when the electric trader began to face the price promotion rationally, the net buys the person to start to worry, whether Taobao will also be the money saving weapon.

According to a Amoy network forecast, the first half of 2013 consumer net purchase price index will slowly rise, online purchase of goods prices or rise. It is understood that the digital industry at present online shopping prices have risen.

Wang Kingston said to this analysis, when the enterprise entered a benign stage of development, the cost will return to a reasonable level, the impact of many factors of commodity prices, not to stop the price of electricity after the war, consumers will increase the cost of online shopping.

Amoy Network believes that the business will convert the price war into service warfare, quality warfare, for the service and quality as a competitive advantage of the traditional retail industry, inevitably is a big challenge.

In fact, the electric business industry hit the red line of profit, the traditional retail industry is facing a more severe situation: the main business growth is facing greater pressure, the pace of competitors did not slow down, the industry was tested.

"Traditional offline channels and online businesses, just different channels, now the difference is not particularly obvious, whether the price or quality and service, in the short term will not have a great impact on the online enterprises will not subvert offline enterprises, offline enterprises are also difficult to subvert online enterprises. "The King Kingston Analysis."

Mo Dai that the traditional retail industry still has the power to replace the place, and the user groups have a distinction between the two. Under the current situation, traditional retail enterprises should use their own resources, brand and experience advantages.

"With the popularization of the Internet, the young consumer groups have developed a certain shopping habits, the net purchase is not only the price, but the habit of the purchase behavior transferred online." "said Wang Kingston.