Brand Electric dealer all-out war promotion war

Economic reference newspaper November 12 quoted the industry's forecasts that this year "double 11" period, more than 20 major electric dealers are expected to achieve overall sales of more than 30 billion yuan, to achieve a doubling of the same period last year "good results."

Li Bin, an executive vice president of Suning and Tesco, believes that the "double 11" of the consumption, although there are some irrational, but in the long run, this kind of concentrated high flow big promotion can test enterprise's supply chain, operation, system, service and so on comprehensive ability, is advantageous to the industry conformity and the progress, to "double 11" after the Chinese electric business pattern trend has the influence.

"The strength enterprise can participate"

Some of the electric dealers listed the "Double 11" promotional report card is quite eye-catching.

Alibaba Group 12th Morning released the news that its "double 11" promotional payment Bao total sales of 19.1 billion yuan, increased by 260%, of which the cat for 13.2 billion yuan, Taobao for 5.9 billion yuan.

Suning Tesco 12th released the latest data said, November 9 since the three days of "double 11" activities, 11th orders slightly ahead of the sum of two days, three days to reach a total order of 2.956 million orders. More than planned 20 times times year-on-year growth goal, is said to have created Suning easy to buy a single day since the sale and a big promotion of the historical record.

Just past the "double 11" big promotion, in addition to Alibaba under the day cat and Taobao, Suning easy to buy, Gome Online mall, Bowser Net, Jingdong Mall, Amazon, Dangdang and other mainstream electric dealers all war.

"This is a real strength of the enterprises can participate in the competition." Said Li bin.

But one industry personage pointed out, the electricity dealer sells the hot behind also accompanies the cost promotion. With the previous two years of promotional experience, the major mainstream electric power in this round of "double 11" before the start to upgrade the service system, including upgrading the relevant trading system, improve the logistics system, these costs are not low, "the major electricity dealers can profit how much, difficult to judge." ”

In August this year, the Beijing-east, Suning hit the price war, the securities companies have been rethinking the cost behind.

Security securities issued at the time of the institute said that Jingdong Mall in August 2007, January 2009 and April 2011 carried out 3 rounds of financing, the original capital of about 9.6 billion yuan. There is such a scale of capital support, Jingdong Mall since its inception in the Logistics Center, Office and other fixed assets investment has invested hundreds of billions of dollars. "However, if it is not profitable, then the huge financial backing also has a day to run out." "Since the establishment of the Logistics center and the purchase of Super Flagship store properties, Suning appliances (002024, shares bar) of the financial situation is also relatively tense."

In July this year, Suning appliances targeted additional financing of 4.7 billion yuan, August announced the issuance of 8 billion yuan corporate debt financing plan.

"Winner Take All"

"Double 11" This kind of nodal sex big promotion, who is the winner?

Ecapital Capital CEO ran on Weibo, "Double 11" in the original can be smooth sales curve on the artificial arch a crest, may not really bring much real increment, but also let the merchant's warehousing, logistics, customer service and other links straight into the bottleneck. In addition, "double 11" to further strengthen the single dimension of Chinese consumers only price is from the consumption habits, drag China's e-commerce companies collectively away from health gross margin.

University, Ph. D. Liu Xin, PhD supervisor at the School of Economic management, is that the cause of the frequent occurrence of the electric business War is that the industry is limited in profit space, only through the price war, defeating other competitors, enterprises have the space for survival and development. But too frequent price competition, the root cause of the electricity business model is congenitally deficient.

"The most fundamental basis of the electricity business is the size of the transaction, without a certain scale of trade, all the profit model has become a castle in the wind." Online trading has the characteristics of winning a take-all. This determines that the electrical business in order to survive, it must be on the one hand to enrich the trading varieties, on the other hand, regardless of whether the electric dealer is willing to, in the era of highly homogeneous trading varieties, but also through the launch of frequent price war means to achieve the expansion of trading, replacing other trading platforms. "Liu Xin 12th to Bcc Net said.

Analysts have judged that the final winners of the electric business battle will be those with platform advantages, large transactions, trading varieties with characteristics, as well as the logistics and distribution advantages of the electrical business.

According to Xinhua news agency 12th, as usual, the "double 11" price war so that the comprehensive service capabilities of the electric dealers again face challenges. According to Sina Weibo on the user feedback, due to the traffic is too large, day Cat merchandise page, payment page are system instability problems appear. Many users can not make a single or payment failure, some hot products are out of stock, as well as users reflect, some online banking payment system also appeared problems.

With the electrical business closely related to the express industry also has action. From 12th onwards will enter the "double 11" after the delivery peak. Although "four Tong one Tatsu", Shun Fung and EMS and other express companies have to deal with the "double 11" ahead of the expansion of the courier, and increase freight vehicles, but the follow-up link can really smooth still remains to be seen.

"oligopoly" monopoly pattern?

For consumers, the benefits of a price war are obvious.

As some of the electric dealers launched the parity system, the previous criticism of the false discount phenomenon has been reduced. In a electric dealer's "Double 11" promotional activities to win 150 yuan in the red envelope of Chen surname consumers, he bought in the activities of the early collection of 70% of the merchandise, saving thousands of yuan. He thinks, this kind of big promotion still brings the benefit to the consumer. But after the payment has not received the goods, so he is also not clear, large quantities of centralized sales will affect the logistics speed.

But whether this price war is sustainable is a problem.

This August, by Jingdong Mall launched by the so-called "history of the most brutal" electric dealer "price war", eventually ended with a funny ending. "Price war" initiator Delete price micro-blog, product price quietly callback.

Moreover, the Electric war "winner take All" characteristics, may be the price wars long-term risk transmission to the consumer. A market personage analysis, in the future if the electric business industry forms "oligopoly" monopoly pattern, whether it will have the power to reduce prices is difficult to speculate.

Zhao, deputy director of the research Department of Consumer Economics at the Ministry of Commerce, said yesterday that she believed that small and medium-sized electric enterprises should consider how to fight for the second, or even unite and first struggle.

"First, companies can purchase through the Procurement Alliance, the way the unified purchase, get a lower purchase price, so that small enterprises in terms of price can compete with large enterprises; second, through the Service Alliance, the price of a certain situation, who will be able to achieve better customer satisfaction and reputation; third, through strategic alliances, Small enterprises form a strategic alliance on the development level; four, capital cooperation, through the exchange of capital stock. Zhao to Bcc net said.