A reflection on the price war of electricity dealers: Ten questions about "the war between the Soviet Union" and the Black Horse

Dangdang CEO Guoqing said: "All do not really price wars are bullying, all do not say the truth of the price war is a big adventure, all the first rose after the price war is a big lie." Unfortunately, we are experiencing such a "farce".

August 14, 10 o'clock in the morning, Jingdong Mall board chairman and chief executive officer Liu bursts two micro-blog, said "Jing dong everyone electricity three years 0 gross margin", "Beijing East all everyone electric guarantee than Gome, suning chain cheaper than at least 10%", ignited a so-called "history of the most brutal price war" fuse.

In the days that followed, consumer questioning and "performers" were all over the mouth. The warring parties have been repeatedly the price of pre-war prices, Web pages Intermittent "shock", low prices but out of stock and other electric dealers used to promote the method.

However, "8 15" is still a day worth loading into the history of the electrical business. With the "price war" as the main marketing model of the Chinese electric business to reflect on the time. This breakthrough in the bottom line of the marketing drama due to flawed, the result is "side effects" and influence in direct proportion. A survey shows that 91% of netizens agree that the truth of this war is only the joint hype of the electric dealers. Its damage to electrical goods cards may be prolonged in the future fermentation. How long will it take to compete on the price rather than the innovative market?

In this war, Suning and Gome are no longer just traditional retail trade representatives, we have seen a psychological war, a stress test, in the feeling of the Internet and traditional retail industry collision violently, while people are more amazed at the determination of their transformation. This war will undoubtedly make this process even more urgent, how will this affect the entire business world?

We use 10 questions to record the battle and find the answer.

A question Liu premeditated or whim?

"We took half a month to buy the goods, Liu How to operate in just one day?" ”

A vigorous "price war", in the end is the idea of a sudden head decision, or a premeditated frame?

The client, Liu, said the decision was abrupt. August 13 around 8 o'clock in the evening, Suning appliance issued a notice that will issue 8 billion company debt, 3.5 hours later, Liu in micro Bo Suddenly said, tonight, inexplicably excited. The next morning, that is, August 14 10 o'clock, at the end of the executive meeting, Liu suddenly announced the beginning of a large-scale price war, play Su Ning! One day, Jingdong has enough time to prepare and launch a war?

Jingdong in charge of the Department of Household Electrical Appliances and the public relations did say, see Micro bo very consternation, in their ignorance, the price war has been fought! But Beijing's opponents and many in the industry think this is a premeditated conspiracy, in their view, Liu at least for more than a month to worry about. Suning Electric Group vice chairman Weimin at his own stock time to do comparison, he said: "We have hundreds of thousands of kinds of products to participate in this promotion, light procurement to spend half a month, Liu how to operate in a short day?" Pengliang, vice president of Bowser Network, also released news through the media that he had been tracking the price war preparations in the east, not Liu's interim decision, but at least for one months.

And in the August 14 media reporter's meeting, Liu more willing to this time the price war is summed up as "coincidence" two words. According to him, he is on the micro-blog said, he said, the price war this thing said out, so, dozen Bai. Therefore, in the early morning of August 14, informed all managers must be present, the director of the above management staff is canceled annual leave, and originally July or August is the Jingdong mall concentrated leave of two months, on average, about one-third of the management personnel are not in the job.

This may also be the most confusing for ordinary people, "the strongest price war in history". Can he do so many things in a day? Why does he have to do a job in one day that is impossible in the eyes of others? However, in the public eye, this is no longer a simple price dispute, but in the "three troubled Times" in the Liu of a marketing, public relations, capital of the premeditated war.

Second ask Liu why always succeed in picking things?

According to relevant sources, Jing Dong this time spent tens of millions of yuan hit on Weibo.

Last week, Jing Dong to Su Ning launched a price war, although "you 1 yuan, I will be 0 yuan" propaganda slogan has become cannon fodder, but there is no attention to the Beijing-east of the trouble always occupy the major news section, even in Beijing's outer suburbs, "Jing Dong and Su ning Fight" is also the gossip of conversation. Liu again to succeed. Why can public opinion be guided? He wants to play a price war, with the whole industry to accompany armed battle?

This year, Liu repeatedly the celebration of his company, lit as the whole industry spree, because each price war behind the sales figures and traffic are doubling growth. On the face of it, it only belonged to Sina's membership, which he spent 10 yuan on Sina Weibo. Liu often use only one set of microblogs, without holding press conferences and advertising in traditional media, to win the attention of many media outlets that are much more expensive than the advertising version, and to make headlines.

Is it really just 10 dollars to get the big national discussion? The answer must not be so simple. According to the relevant sources, Jing Dong this time spent tens of millions of yuan smashed on the microblog, on the one hand, Liu a provocative microblog, through some marketing agencies, to find some opinion leaders, to analyze their preferences, to forward them to the content of their published microblogging; On the other hand, through Weibo, Set their own topic as a hot topic, increase the participation of ordinary users active degree.

And from now Jingdong accounted for more than half of the market share of autonomous, when the Beijing-East launched price war, the sidelines does not seem to be the best choice. From the actual effect, every time the harvest is really not small, because the online shopping market is still expanding, the flow and sales have been very good growth.

However, the Liu this time but has encountered a public opinion defection, by some netizens dubbed "liar" title.

What role did the investment bank play?

If Jing Dong died, the hundreds of millions of dollars it had previously cast would have been yellow. So, hit the dead!

One of the most striking jokes of the last week, I'm afraid, is Liu's little blog: "This war is going to cost a lot of cash, what's your attitude?" A shareholder said: we have nothing but money! You can fight it, hit the dead! "Are these investors really a steady stream of blood banks in Jingdong?" he said.

Investors are naturally careful in their calculations. Although Jingdong Mall has been said to not consider the listing before 2013, but its preparation for the listing of the news is constantly spread, and now close to 2013, but also out of Beijing and east around looking for private placement news, the reason is now in the stock performance is depressed, the current gross margin of only 5.5% of the Jingdong, can The concept of foreign investors to obtain recognition? Be aware that Amazon's gross margin remains at 20%. Out of the door of jingdong investment people can do, I am afraid, can only follow strong brother go.

Liu also revealed in an interview, "The price war was originally expected in the fourth quarter, but our big home appliances sales next year must be more than 30 billion, to reach 50 billion, this is at any cost." "This also confirms that Jingdong or the investor has signed the" gambling Agreement ", that is, once the sale of the agreement is not completed, Liu will lose a part of the voting rights.

There is also the view that, from the current perspective, the price war is more like a hype. In addition, the BoE also said that the main concessions are manufacturers, to protect the profits of Jingdong will not change, so the price war for investors is just shouting slogans. In the opinion of independent analyst Li Chengdong, the hostage between the investment bank and Jingdong is mutual. Since I missed Ali, I would like to hold a Jing dong. But Suning has always been the biggest threat, if Jingdong died, before the vote of hundreds of millions of dollars on the yellow. So the night of the August 14 meeting, the unanimous opinion of the shareholders is, fight! Because do not fight, suning again smooth financing, will be passively beaten, cast more money.