After the price war: 2013 collective seek profit

Online retailing in the 2012, with a number of key words, such as layoffs, online under the line, etc., which, the most representative, should be "price war."

The "price war" left many traces in 2012 years. Whether it is suning easy to buy, Jingdong Mall, Gome online and other electric dealers to participate in the "6 18" and "8 15" promotional, or Taobao launched the "Double 11" promotional, all make the price war between the electric quotient, in the year of commercial retail events left an important sum.

Especially important, because the electricity merchant price war is difficult to distinguish between true and false, encounters many complaints, finally, the National Development and Reform Commission to "8 15" the promotion main enterprise to suspect the price fraud to make the large ticket. In the happy enclosure of the online retail business enterprises, began to face the industry and the situation of the enterprise itself.

December 25, 2012, Gome (00493) HK) Senior vice President Guixian said Gome's main online retail brand Gome online will be profitable in 2013. At the same time, including Suning easy to buy, Jingdong Mall and other independent electric business enterprises have made similar statements.

This allows the industry to have a lot of the latest judgment on the 2013 online retailing industry. One of the core points of view, in the profit background driven by the 2013 electric Business industry's core keywords, will no longer be the price war, but the industry around the enterprise profit and the industry and the category of deep.

The consequences of a price war

"Every day someone to enter, but also someone out of the field" is the industry's 2012 online retail industry lively and flashy phenomenon of a high sum.

Not like the offline appliance retail industry has Gome, suning two points to consumer brands, regardless of the platform model of Taobao and Cat Mall factors, online retail industry is not in the hands of any independent electric business enterprises. 2012 Online retail size is expected to be more than 1.1 trillion yuan, and Jingdong Mall, Suning easy to buy, shop 1th and other large independent electrical goods sales total, accounting for the total industry only a fraction of the decimal point behind.

Like 2000 years or so in the offline retail industry, the horse-race-style expansion of thinking is also filled with the brains of the electric business big guy. As a result, the retail industry's time-tested price tactics have become a razor for businesses to compete for online traffic and consumer bonding.

From the beginning to the end of the year, the price war in a variety of pay ads and media soft wen bombing. However, as the need to comply with the market economy game rules of the price, eventually, including Jingdong Mall and other enterprises in the "8 15" promotion, the national Development and Reform Commission to identify the existence of price fraud, resulting in the regulatory department issued a large ticket.

In the wake of the NDRC's ticket, big companies have had to taste the consequences of price wars. Because of excessive promotion, disorderly expansion, as well as the price system under the control of the bottom line prices, and other reasons, so that the large independent electric enterprises are in a loss of state.

In the list of large losses, not only the 2012-year business scale or more than 45 billion Yuan Jingdong mall, but also include an up-and-comer, the year of operation is expected to be 20 billion yuan in Suning easy to buy, at the same time, also includes 2012 estimated revenue in 5 billion yuan of the black Horse Gome online.

The Call of Reason

Perhaps the National development and Reform Commission's ticket has played a role, to the industry rational thinking, at the end of 2012 gradually emerged.

November 2012, with Chaoshan merchants Wisdom pedigree of the Gome Electric Business department, decided to abandon the Gome online retail adhere to the independent multi-brand operation Strategy, will be owned by the two electric platform Gome Online mall and Bowser network to integrate to a more embodies the attributes of Gome brand "Gome online" platform. The purpose of merging two platforms is to make the business profitable.

To make this judgment stems from the high level of gome electric power industry reflection. Handepeng, president of Gome Online, said, "In the future, the competition in the electric business sector is certainly a lasting one." Regardless of the cost of operating losses, it is certainly unsustainable, and only to achieve the scale and profitability, in order to continuously expand the market and firm footing. ”

To achieve the electricity business plate 2013 years of profitability, but also become Gome's strategic consensus on the level. Gome at the end of December 2012, the issue of Gome in the next three years of development strategy, in charge of the electrical business of Gome senior vice President Shangui talked about this first. He said, "The hope Gome online become the first profitable electric business enterprise".

Before the Gome online high-profile announcement of the proposed profit plan, suning Tesco has long been a full profit target design. Suning Appliance (002024, Stock bar) (002024) SZ) Vice Chairman Weimin has said, "The electric business industry burning money is mixed face ripe", the industry should be driven by capital to the profit-driven transformation.

Previously, Jingdong Mall chairman Liu expected, Jingdong Mall in 2012 may achieve profitability, but, due to the 2012 industry competition, price war, resulting in Jingdong mall loss or can be as high as 2 billion yuan. In 2013, there is a chance to realize the sales target of the Jingdong mall, also need to challenge a profitable industry curse.

In Gome online, suning easy to buy, Jingdong Mall, other large electric business enterprises in 2013, or will be due to the online retail enterprises in the pursuit of profit and produce catfish effect.

Difficult exploration

But for Jingdong Mall, the tens of billions of business scale enterprises, to achieve profitability, there are many challenges. Even for suning easy to purchase, Gome online in the field of electrical business in the fast growing period of enterprises, to achieve profitability and take into account the speed of development, customer adhesion, but also a small challenge.

In 2012, after the initiative to provoke price war, Jingdong Mall in the commodity pricing, no longer pursue low prices, but the implementation of a full combination of high and low prices of commodity pricing strategies to enhance the gross profit margin. In addition, Jingdong mall also raised the threshold of free delivery, in order to improve the price of customers in the form of stabilizing costs.

For the advantages of the United States and Suning, Su Ning, in 2013 will focus on the realization of online resources under the line of mutual benefit and integration. Through improving and supplementing the "last kilometer" distribution capacity and other supply chain capabilities, to achieve service upgrading and performance improvement. At the same time, enlarge open platform business, is also two companies are looking for one of the profit points.

In the mode of transformation in the 2013, the electronic business of the shuffle between enterprises still exist. In 2012, where the plight of the goods, from the founder of the company to cut off home appliances, department stores and other business focus on the main industry strategy, will be deepened in 2013, but the aftereffect still need to wait and see.

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