A public "farce" in the Electric business world

This is a power business of the People "farce", "Roar" very big Jingdong Mall CEO Liu became the public good of the farce, he ignited the electricity dealer low price war, but became the other electric power to play the power tool.

Liu did not think that the usual style of play, now has been a huge resistance: The battle was ignited by their own, did not provoke a large number of rival Su Ning follow-up; In addition, the East has always been regarded as the biggest enemy of Ali, also abandoned the days of the cat's price following the strategy, but carried out a Amoy, using its parity of media properties, Assist other electric dealers to jointly deal with the Beijing-east.

A night decision?

Prior to the tactical victory, Liu began to become overly confident before launching the campaign.

August 13 Night 11:25, Liu on his microblog: "Tonight, inexplicably excited." "In fact, this excitement for a reason, just a few hours earlier that night, Su Ning issued a notice, proposed to raise funds of 8 billion yuan for electricity and supply chain construction."

Due to the current economic environment, the national household appliances sales continued to decline, as well as the lower cost rate of the store, Suning, Gome and other household electrical appliance channel business is to seek a transformation, and online channel expansion will become a "channel reengineering" strategy of the main part, but in order to establish the online channel brand and flow faster, A lot of money will undoubtedly be spent in the short term.

Suning Online A large amount of money caused by the panic of some investors, but also touched the Liu Heart of the abacus. Liu understand, with the current capital market on China's loss of electricity valuation of the market is not significant, but if "trample" Su Ning, gome, such as domestic online appliances giant listed, there will be a higher valuation of the "wedding dress."

And if the choice in Suning to send 8 billion yuan bond when the mouth to stir up the battle, no doubt can trigger a bigger topic.

August 14 10:20, Liu with a fierce micro-blog provoked the war, "Jing Dong Everybody Electricity three years 0 gross margin!" If within three years, any of the sales personnel in the electricity even if there is a dollar of gross profit, will be immediately dismissed! From today onwards, all of Beijing East Electric guarantee than Gome, suning chain cheaper than at least 10%, the company soon announced the implementation Method! ”

This microblog may seem familiar to Dangdang CEO Guoqing. More than a year ago, Liu also in this tone, through Weibo to Dangdang book Field launched a price offensive.

This is a birth Umebo, not a boardroom, nor a board decision.

Daiju Dongweibo issued after the issue, a Jing Dong business staff quite surprised, he first contact other colleagues to ask, but the answer is, in addition to Liu (Liu) micro-Bo, has not heard of the interior of Beijing to take relevant action. The action is communicated to departments in the evening. In the meantime, Liu through micro-blog said, DST, Tiger Fund, Sequoia, Kleiner and other six or seven major shareholders have also supported.

Liu constantly provoke Su ning. On the one hand, he hoped that Su Ning could follow his own strategy, Su Ning with, its profit margin will be more substantial decline, affect financing, and if it really can affect its financing, the concept of the east of Beijing became; On the other hand, Daiju East need to constantly portray the conflict between Jingdong and Suning, the greater the conflict, the more users believe that the price of the East, Beijing Dongda Home appliances sales are expected to go up, everyone on the electricity, Beijing East year broke 45 billion yuan sales target there is hope.

The opponent has become smarter.

August 14, Liu issued a total of 24 micro-Bo Jian refers to Suning, Gome, but Jingdong does not seem to be ready to cut prices.

From August 15 to 17th, some users reflected the high price of goods in the East Jingdong in the state of the goods.

This can be seen from the stocking of Jingdong. Beijing east on the evening of 14th began to summon staff to prepare for the purchase of large appliances, rather than the normal promotional campaign as early as the stock. Wang Hanwa, the Amazon China president, told the first financial daily that the sales promotion battle was to start stocking three months in advance, while Jingdong was the first to send micro-blogs and reserve goods.

In addition, Jingdong seems to have the first quietly raise prices after the suspicion of price reduction. Alibaba's one Amoy network monitoring data show, Jingdong Mall 14th evening in everyone's electric category on nearly 50 items quietly rising prices, price increases from 30% to 100%, ranked among the merchant "quietly rising prices" list top.

And even more, a Amoy NET data also shows that as of 15th 5 o'clock in the afternoon, suning than jingdong high prices of large household appliances have 297, accounting for more than 25%, Jingdong prices than suning high goods 475, accounted for 41%; the remaining 34% of the goods are the same price. This shows that Jingdong real price is not much lower than suning.

It has to be admitted that Jingdong's opponents have become smarter. A person in the industry said that after the Beijing-east price war, regardless of the real fight, Liu Micro Bo Yell, opponents are followed by Price, which in the momentum of the lost; and this war, Ali did not let the day cat to follow the price, but to lift out a Amoy This media public device, to help the Allies besieged Beijing east.

In fact, Su Ning has not been Beijing East Jijiang and blindly follow the price, but in accordance with the previous "8 15" The price of the activities of the rhythm to unfold. August 14 Night, Suning appliances (002024, shares bar) vice Chairman Weimin to the media, Jindong in the United States has communicated instructions, not to follow the Beijing-east, according to the previous plan promotion can.

Suning's failure to follow also made the plan part of the Beijing-East frustrated. According to Liu, there are about 8.7 billion yuan in the capital, and the earnings show that Suning has 11.7 billion yuan. However, the electricity accounted for less than 15% of the east, but accounted for 60% of suning appliances. If according to Liu's argument to follow the price war, Su Ning does not obtain the additional financing the case not quite this year.

Simple calculation. According to Liu said that the year to complete 7 billion yuan, next year to complete the 30 billion yuan large household appliances sales target, and one-third of the cost from the capital, 0 gross margin of the plan, as well as 10% of the return point, the Beijing-East this year, the cost of electricity sales for 1.6 billion yuan, next year the sales cost of large appliances is 7 billion yuan. In other words, if no longer financing, Jingdong capital reserves can be sustained until next year.

And the same conditions, Suning does not count into 8 billion yuan debt financing and other external financing situation, to suning one year 100 billion yuan sales scale, of which 60% for everyone electric calculation, suning this year in the electricity sales cost of 14 billion yuan, not enough to support to the end of this year.

But Suning, Gome and other electric dealers did not give up the Beijing-east "beat" propaganda. Suning Easy to buy executive Vice President Li Bin every day on Weibo update suning easy to buy the latest promotional results. Gome's online mall also said Gome's price is by no means lower than that in Beijing, while Amazon China is calling for a "low price every day" slogan.

One analyst said that when "local wars" rose to "World War", users had not been able to tell who is who, but online chaos will leave them a rough idea of how to buy big home appliances cheap.