A big battle is about to begin

November 11, this once dubbed "Singles Day" special date, now in the promotion of electricity, has become a veritable "online shopping carnival." This year, in the so-called "2012 last price war" under the banner, has gathered the days of cats, suning easy to buy, Jingdong Mall, Dangdang, Gome Bowser and other heavyweight power giants, a war is about to begin.

Singles Day is a non-traditional holiday with digital inventions, it was originally a single men and women to find their own holiday, digital visualization to represent everyone on their own ridicule, but then Taobao to 50 percent sales, quickly make November 11 become a large number of netizens Carnival day, and finally evolved into the electric business giant's blood spell day.

At this stage, Taobao, Beijing-east, Suning and other large electricity market share gradually increased, therefore, the whole industry is more able to see the strength of enterprises, scheduled seating. According to China's E-commerce research Center monitoring data showed that in the third quarter of 2012, the market share of consumers online shopping, day Cat Mall to 46.8% ranked first, Jingdong Mall to 21.5% ranked second, Suning is the third, but the market share only 3.8%.

Through the "Double 11" promotion can be seen this year in the "Double 11" of the home appliances business in the war is not only a price war, but also its resource integration, category, stock, technology and other aspects of the test. In the electronic commerce concentration unceasingly enhances, the population dividend unceasingly disappears, the market growth has slowed down the background, the electric commerce, the platform cooperation is more frequent, the competition is more intense, this is a bigger, the stronger battle for each big electric dealer.

From the Spring Festival to Singles Day, from the national day to the shop to celebrate as long as it is on holidays, will be electric dealers to do a variety of million grand promotional, full 0 yuan shopping activities. In the end, this is the power to stimulate sales growth, to circle more users, while limiting the means of competitors. Some electric dealers for the "Double 11" promotional campaign to attract more consumers, the major platforms to 11.11 of the competition has been very unhealthy. Before this, the cat was burst into a demand for two businesses to choose one, can only participate in the activities of the cat or Beijing East activities, and Jingdong was also forced to participate in the activities of businessmen, blocking the background of the business situation.

It is not difficult to see that such a promotional concept so that the real beneficiaries are the major electric dealers rather than the mass consumer groups. The author thinks that the final result of such low price competition between electric dealers can only be a lose-lose. This year's "Double 11" promotion is still the "bloody promotion" model, is the main sticking point of the price war. Businesses blindly discount promotions, to corporate profits to subsidize consumers violate commercial laws, will eventually go into the "Do not promote sales" of the Dead end. From the perspective of corporate profitability, "Double 11" big promotion is still a loss to make a yell, but also the enterprise is the last resort, because for the current large-scale business mall, the level of profitability is not the most important indicator, and the user volume, transaction size is the most important, and once consumers are accustomed to the model of low price promotion, In the short term, this model will be difficult to change. Therefore, as consumers of the concept of consumption should be more rational, do not make simple price reduction to become the object of popular debate. At the same time, electric dealers should change the mode of low price competition and turn to service competition, to service for resources, to serve to catch the flow, to experience grasping customers, will be low price promotion from the fixed time into a regular sales throughout the year, is the real sense of Chinese electric business progress, can really in the industry firm footing, invincible.