Birthday party raises price war for electricity dealers

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In the first half of 2012, the competition for the major companies, such as Gome, Suning, and other traditional channels invested heavily high-profile entry, Taobao Mall renamed after the Cat continued to strong performance, shouting "No fear" and "positive energy" of every guest in this spring feel more chill, About Jingdong Mall Capital tight and the rumors still on the market, Dangdang resolutely layout platform, and Amazon is more efforts to please local users ... Beijing, the recent introduction of the IT Channel "business" series of reports, for you to comb the big enterprises in the first half of 2012 performance.

The third: Jingdong Mall into the industry "imaginary" to provoke the price war to lead peer criticism

Xinhua Beijing, July 4 (It channel Jiang Ying) June 18, 2012, Jingdong Mall ushered in their 14 birthday. In this "special day", the day cat, when, Suning Yi to buy and eat "cake", let this birthday feast significance.

14 Entrepreneurial wind and Rain Road, Jingdong Mall had to break through the traditional mode of electric power and headache, but also with other enterprises like the hardships of the entrepreneurial road. In the gradual move out of savage growth to intensive transformation, the expansion of the Jingdong has become the focus of attention.

From the "lack of money to say", "by the IPO" to the press supplier incident, and then to trigger the biggest price war in the history of electricity, the first half of the Beijing East never out of the media layout.

Industry disaster celebrates the price war of electricity dealers

June 18 is the Beijing-East store Celebration Day, and with the e-commerce industry increasingly intense competition, Jingdong party attracted more participants.

At the end of May, Dangdang played "Naked Ben 48 Hours", "Bloody Levy East" promotional activities; Bowser network launched the "Sniper 6.18", "Victory in Normandy", Xun nets playing "ice 72 hours of the entire network of the net advertising", said that "these three days, no more than easy to lower prices"; Suning Tesco's "E18 plan" Also seems to have ulterior motives; in the interior of the cat has developed a code-named "Forest Wind Fire" plan, from morning to night continued to "Smash bricks", "catch cat" to retain users, can be seen in Beijing East "charm" of the big.

"This year, the price war of electricity dealers, from the second half to the first half, and concentrated in large electrical business enterprises, small and medium power companies did not challenge." "Analysys International analyst Shou sent to reporters in the south, said from the current situation, Jing Dong was regarded as the industry's largest" imaginary enemy. "

Price war can also be understood as a way to "drag" Beijing East, Shou returned that the cat in China has been the role of the leader, if the Beijing-east first listed, then the future market status of the cat will have a certain impact.

Industry expert Ruzenwang also thinks, this price war, changed last year Jing Dong a share big electric quotient pattern, Su Ning is easy to buy, the Gome department and the day Cat electrical Appliance City Share all in the rapid increase, caused the pressure to the Jingdong is very big.

The mystery of mode operation Way leads to the peer questioning

Jing-dong to enter the market with extensive model, but in the past few years has been maintaining high-speed growth, the industry on its model is "replicable", "sustainable", has been touching the bottom. Shou sent to think, "from the Sky Cat, although the model is different but the growth of jingdong, it must be on the scale and the east to open the gap, in order to prevent the formation of a parallel pattern." ”

Over the years, Beijing-east by the continuous expansion of product category, more and more extensive coverage of the logistics system, the year almost uninterrupted discount promotional activities, coupled with the Liu personality, half a year to Tatars the voice of the East.

At the beginning of the year, Dangdang CEO Guoqing First "shelled" Jingdong Mall for no reason price increase, then publicly said that "Jingdong capital only enough to maintain until December this year, when the two to make a flower, Jingdong is to make a flower four." ”

And for Liu publicly said "price war to hit will be ruthless", at the expense of profits, Suning chairman Jindong in the media interview in response said: "I have not seen which enterprises can achieve this way to win the final." Such practices, which violate normal business logic, not only make the industry difficult, but also mislead internet consumers. ”

May 8, in response to the Beijing-east claims to invest 500 million to promote, Cat Electrical City general manager Tan Yu publicly questioned said: "500 million subsidized appliances?" How does Liu always stick? is not confident of the high price of Jing Dong? Do not pass the cost to the supplier! Do not pass on the cost to the supplier!

IPO puzzle Capital Markets not buying it?

In fact, "burning money" has long been a common problem in the electric business industry, guoqing for Jingdong "earn a Flower four" accusation is only "kettle". In the face of tight cash industry, listing financing has become a good way to quench the thirst of major enterprises. The news of the Beijing-East IPO has spread over the past six months. Earlier reports said that Beijing East will be in June to the United States Securities and Exchange Commission (SEC) to submit applications, the earliest this September landing per share. The latest news points out that, after communication with investment banks, Beijing has decided to postpone the IPO until next year as the global market is depressed.

Some analysts believe that the Beijing-East postponed the IPO is not because of the depressed capital market, but the capital market is not optimistic about the Beijing-east model. It is reported that the Beijing-East management of the IPO valuation of 10.02 trillion U.S. dollars, but the investment banks "bargain", only agree with its 6 billion U.S. dollar valuation.

Although Jingdong Mall has no comment. But with the former BofA Merrill Lynch Group of Investment bank director 蒉 Ying Chun joined, also indicates that the Beijing east in the intense deployment of the pace of listing. This is the fifth chief executive who has been introduced in the Near East in the past year.

Since last August, the original Baidu senior vice President Haoyu joined as Jingdong COO; at the end of the year, the former vice president Shengchang job-hopping to Jingdong Mall as Vice president, in charge of public relations and government relations; Since then, the original Acer China Executive Vice President Lan Ye will join the CMO position in Beijing, responsible for procurement, market and other work; After the Spring Festival, Beijing East announced the original Oracle Global Vice President Wang Yaqing as the first CTO.

Chinaventure Group Weifeng Analysis said that its IPO is a "double-edged sword." "From the current situation in Beijing East, the cat, Gome, Suning Step-by-step approximation, the Beijing-east to consolidate the existing results, significantly surpass rivals, IPO benefits outweigh the disadvantages." The IPO financing ideal, will construct the capital barrier, on the one hand facilitates the enterprise merger and acquisition, helps to expand the business scope, on the other hand the fast layout logistics warehousing, will decide the industry future competition pattern. ”

Logistics of the war express or into revenue channels

According to the Jingdong Mall recently released data show that 2011-year income of 21.2 billion yuan, net loss of more than 1 billion yuan, of which the distribution cost is close to 1.4 billion yuan. Liu has said that the biggest reason for the continued losses in Beijing and Tokyo is that the investment is too big and the logistics cost is too high. In the view of many industry giants, "Cross-border" logistics is a "must have". An Jingdong former executive has counted a sum of accounts, in Beijing, Shanghai and other first-tier cities, the logistics cost of independent distribution in 4.5 yuan ~5 yuan, and the use of Third-party courier cost is 10 yuan.

2010, in Jingdong 5 years to complete the 3C category layout, and realize the annual sales of 10 billion yuan breakthrough, Liu hinted that the next 5 years will invest 20 billion to 30 billion yuan for logistics construction, and in Beijing, Shanghai, Guangzhou, Chengdu Four cities self-built super large-scale logistics core. and Jingdong Mall in Shanghai occupies an area of eight bird's nest in the "Asian" modern warehouse, the project investment as high as 3.5 billion yuan, but the duration of a drag and drop.

Ruzenwang, an Internet watcher, believes that Beijing-east logistics is facing enormous operational pressure, and the construction of warehousing logistics centers is spent in the rear, including infrastructure investment, shelves, forklifts, inventory software, fire prevention facilities, drainage facilities, etc. Moreover, Ruzenwang said, Jing Dong is facing the grim situation is, Taobao and Amazon are speeding up the layout of their own warehousing and logistics system, Jingdong 6 warehouses Although has been taken to the ground, but still did not start, there are about 5 billion yuan in the funding gap.

But can let Liu a little sense of comfort is that Jingdong Mall has been successfully received express license, August end will be open to third parties. Some insiders believe that the Beijing-East logistics is likely through the spin-off integration, with the Beijing-East open Platform packaging independent financing, or even the first independent listing. Strong logistics system support, may let Jingdong in the industry in the future competition to occupy a leading position, more likely to take the lead in achieving profit targets, but for competitors, this is definitely bad news. (Beijing, the IT channel)