Chicken price war and smoke to return to rationality

"Every year, many businesses are doing the price war to die." "In the distance to promote another day, a clothing category of the core seller Li (a pseudonym) to the South reporters so described.

Jingdong Mall ten years of promotional activities for the fuse, in just the past June, China's electric business industry has experienced a collective "price war" carnival. Despite the view of many consumers, the 2013 electric dealer price war in the first round of the campaign was flat, far from the last year's 8 15, double 11来 to be exciting, but in the above authorities, this repetition and repetition of the process has become a "no fight also want to play" dangerous game. User needs are not endless, but players under various pressures have to move at full speed. The era of electricity dealers ' attention by Price is far from past. So, on the one hand worried that they have become a "sell cabbage" discount households, on the other hand, dare not stop the pace, afraid to halt in the first camp competition.

And who laughs last?

The contradiction between Jing Dong Tian Cat "two election one"

"Now do electric dealers, sellers are tired, do not make money." "In the distance of Alibaba under the 26-28 days of continuous three days of clothing sales promotion still one day, Li busy in the south all reporters sigh."

There is a point of view that the Chinese electric power in the past few years after the rapid development of the extensive, is transferred to Alibaba or Beijing East has referred to the "self-cultivation" or "recuperation" stage, the criteria for judging is also from growth to profit. It is obviously too early to make this judgment.

"Is the price war going to make us less profitable? "But in Li's view, this is a" no fight also to play "Dangerous game. There are many sellers like Li who follow the growth of the Internet, their turnover has reached more than tens of millions, and look forward to a greater market share from the competition.

"In China, the electric business is only just beginning, if the line of cake is not growing or shrinking, but online sales have been growing." In this process, the price war has a very obvious effect, for any fine classification of the same, is the horse-race enclosure. Li said, in fact, many sellers know that if you do a 20 million may not be so hard, and a little money to earn, and even if 2-3 billion, make money and this is similar, even less. "But when the cake gets bigger, you're going to be 10 million or 20 million and you'll be eaten." And bigger, there will be a lot of investment or financing capacity, there will be many ways to make money. So the front should be rushed first, the cake bigger. ”

This is the supplier, the seller, the platform and so on each electric trader player can clearly feel the fact. Liu the phrase "the greater the safer", was recognized by many electric businessmen. As a result, the price war has been going on for more than 1.5 years, and we have to keep our position. In this process, "two election one" came into being.

In the Beijing-East launched June Big promotion of the first two days, Beijing East Vice President 蒉 Ying Chun suddenly sent a blog to denounce Alibaba, suggesting that the cat asked the merchant "two election one". Although Alibaba officially denied that the cat "two choose one", but a number of sellers to the South all reporters, received a cat "notice", if the seller participated in the Jingdong 6 18 shop, will be canceled to join Ali Double 11 qualifications.

"They robbed very badly, Jingdong 6 18 One months early to find the seller, immediately the cat also began." Yue (alias) said, "Lock backstage" things happen. "The cat will advance to the seller side, directly with you to the warehouse to see what goods, what is good, what is bad, what to prepare, how to do." That time even need to lock our inventory, a clothes how many quantity can not be reduced can only increase, consumers click to buy, if you can not send goods will be fined or deducted points. Consumers don't care who locks your inventory. Jingdong Also, for example, we decorate the shop said to participate in the Beijing-east activities, suddenly the cat called to be unable to participate in the change of the page, when the east of Beijing lock backstage, let you enter all go, forced to participate in this activity. Both sides are very strong. ”

"Two choose one" behind, is the Beijing East and the cat competition further aggravate the reflection. Jing-dong in the second half of 2011, a pop platform business, the core seller of the business from clothing, shoes, hats and other fields, and days of cats in these areas have been long, and to "double 11" as a powerful weapon to launch a strong offensive, Beijing East unavoidably passive.

But the biggest headache is sellers. We were caught in the middle, they were immortals fighting and we were injured. Li felt very helpless.

Frequent price wars or overdraft brands

Jingdong Mall ten years of promotional activities for the fuse, in just the past June China's electric business industry experienced a collective "price war" carnival. Jing Dong, Su Ning, Xun, Amazon, when, Fank and so on have announced the war.

Xun CEO Bu Guangzi said: "Through the years to run 11." 11 Singles Day and 6 18, you will find that this is not a business, Xun the day of the explosion is not lower than the east, other platforms will have such a burst of growth, which has become a holiday for netizens themselves. ”

But in many sellers ' view, the price war in the final analysis, or said to have only two main characters ——— Alibaba and Jingdong. Yue cited an example. "The general big Promotion is 12 o'clock, we will work overtime all night." There is a platform known as a big promotion, employees to change the page, the results to 12 point to see only hundreds of UV, I said everyone pack things to go home to sleep. So experts know that other platforms don't have to allocate too much energy, because the other share is too small compared to the two. ”

2012, the day cat 11 11 shopping Carnival generated total sales of 19.1 billion, of which 13.2 billion days, Taobao 5.9 billion. And in this year's 6 18 store celebration month, Jing Dong CMO Lan Ye to South all reporter said, overall sales scale in June 17 to 19th reached nearly 5 billion, three days total order number of more than 7 million, of which household appliances sales up to 1.59 billion, the entire open platform, including clothing, furniture and other than the growth of the self-employed 2.5 times times.

Price war, tactics followed, Li recalls that in the last two 11 when the most tense, Jing Dong and the cat to the core sellers are "one-on-one" of the targeted tactics.

The 6 18, the Beijing-east side of the data is, really because "two choose one" exit from the Beijing-east platform only 3, but also are clothing brands, no impact on Jingdong. But Li revealed that the real stay in Beijing east of the core apparel category sellers only 1-2. "As sellers, in fact, in the business, in order to dress class, 6 18 sales only two 11 of One-third, so the two can only choose its excellent." ”

But Li that this choice is actually quite contradictory. "We don't want to be alone. It's like when the operators are alone, the fees must be expensive. There is competition, the platform fees will come down, so privately we hope that Jingdong can quickly get up. In the past, the general expert will say finish double 11, December went to Beijing to run a bit, focus on supporting Jingdong, do a month or two, staggered time, in fact, we are difficult to deal with. ”

From another point of view, the Beijing-East and Alibaba competition, but also to promote the entire electric business industry full speed forward, for many players is another serious worry.

"Just like 6 18, it was Jingdong's shop, but all the platforms were doing 6 18." After the double 11, to the December, the annual special, 30 percent caps are out, all the way in the promotion, from the beginning of September has not stopped, until the next January. ”

To this too frequent price war, Li's view is: "Actually many I said I do not want to participate, today 50 percent, tomorrow 40 percent, the day after tomorrow 30 percent, others think you this brand is not the brand, just sell goods, sell cabbage." ”

Even more serious, there are sellers who may even be in danger of collapsing because of frequent price wars or big promotion. Li example, to clothing as an example, this year you want to do 100 million of sales, if the full 50 percent is 200 million of the hanging premium, generally to twice times the proportion of stock, that is to prepare 400 million of the goods, if the cost price is 30 percent, That 400 million of the hanging premium to prepare 120 million of the funds, which for many sellers is not a small number, in the operation or promotion of a slight careless will appear the problem of capital chain rupture. "So in the industry, the price war is like an aphrodisiac, you know it's dangerous, but you have to enjoy it," he said. Every year, many businesses are doing the price war to die. ”

Consumers from "buy cheap" to "take advantage"

In addition to sellers, the consumer mentality is also producing subtle changes. The electric business platform intense big promotion competition, the low price is one of the most important gimmicks, but under this gimmick, consumer's enthusiasm is still as strong as ever?

Day cat, Jing Dong, Suning is engaged in medical work of the main position of Mr. Lin Net shopping. In Beijing East 6 18 big promotion of the day before, Mr. Lin fancy a speaker from 899 yuan to 699 yuan. On the evening of June 17, Mr. Lin hurried to grab the goods. Later, he found that suning Tesco unexpectedly played a 649 of the low price, and let him quite angry is, in the end of the 6 18, the price of the speaker in Jingdong more dramatically reduced to 649 yuan.

For such experiences, consumers feel very helpless. "If it is urgent things will not wait until the big promotion to buy, and some really want to buy things, big promote also not necessarily do promotions." "Mr. Lin said

From Sogou search to provide a comparison list, this year 6 18 price war during the whole net promotional merchandise real price reduction is still the mainstream, but the phenomenon of individual commodity prices before the price increase, which in mobile phones, kitchen appliances, beauty protection and other popular commodities in the performance of obvious, on the contrary, SLR, TV, refrigerators, Products such as mobile HDD and desktop computers led the top 5 of the average price of popular category goods.

In fact, the price war plays an important role in the development of China's electric business has its historical reasons. In the line on the sale of brand A21 the head of the Chen Yuwen, on the one hand, because of the Chinese electricity business consumers from Taobao training. "Taobao is the first to use price war, so the first batch of Chinese electric manufacturers to cultivate consumers, is very sensitive to the price of that part of the people." We think of the first electric dealers think of Taobao, think of Taobao first thought cheap. Second, in 2008, when the economy was very poor, a lot of bad exports to the Internet to do sales, this batch of sellers are facing the serious problem is inventory, not only clothing many industries are selling inventory, in order to maximize their own interests, the fastest means is the price war. ”

He believes that the aesthetic fatigue of today's price wars has been recognised. "In this way, how to develop the brand?" When did you ever see Louis Vuitton and Gucci every day? We feel that the price war will continue this year, but it is hard to say by next year. Now a very obvious trend is that our peers to do the price war businesses, simply speaking is that those explosions, have been dead, so we have been aware of a year or two after a better supply chain and brand of business, will be more easily survive, the business bigger. ”

The past two years is the electric trader's climbing period, from last year 6 18 to double 11, the whole industry is very lively. Skyworth TV Division President Liu Yan Branch to the south, said that last year, the two 11 days of cats sold 19.1 billion, envy evil people, but this is the electrical quotient of the special performance of the period, this kind of pomp may be gone. "In the 2012 fiscal year, Skyworth's sales in the electricity channel rose from 1.8% to 3.8%, which grew fast, but this year the electricity trader's growth rate slowed compared with last year." After the double 11, the line has gradually reached a balance. This year 6 18 is no better than last year, and frankly, Skyworth 6 18 online sales this year have slipped from last year. ”

The consumer mentality is changing, and the seller's operating mentality is changing. "I used to buy things that were cheap, and now I might buy something that would take advantage." "The franchise hangs the machine Bellede, its general manager Liang Yongjian in accepts the South all reporter to interview to say:" The price war has always been a means of home appliance sale, but these two years hit up the technical content to be high many, no longer is the pure price reduction so simple. He believes that consumers now have more personality. "Not that you must be cheap, but that you are suitable for the whole network to buy the characteristics of the crowd, so the form of promotion will be more complex than simply pull down the price." ”

In the southern Economic officials micro-launched the "6 18 electric business war is really cheap or fake affordable" reader survey, 37.8% said that this year's price war "is not concerned about, are businessmen propaganda only", 29.8% of the people think that "the price of commodities this year is not big last year, shouting Huan benefits less", and another 25% people think " Electric silly promotion is too frequent, early promotion fatigue ", only 7% of the readers think that" there is really a bargain, I amoy. "

From NetEase benefits Network data show, although the same as price war, in 2012 8 15, Beijing-East flow rate rose to 132%, suning flow Rose 706%, and in this year's 6 18, as of the afternoon, the average daily increase in Beijing East only 36%, and suning traffic rose 49%.

Xun CEO Bu Guangzi Analysis, said from time, Jingdong 6 18 is the first half of the year, and the second half of the 11, December than certainly less than the second half. "Alibaba's double 11 and double 12 should have been carefully considered, because the fastest wave of growth at the end of each year is 11, December." We do things in two modes, one is to make, one is rowing, so double 11 and double 12 is a smooth push boat, and 5 June if it is simply to improve sales of the matter is rowing. ”

Bite the bullet.

A few times a year price war, a year several degrees of aesthetic fatigue, but not dozen also want to play. In the interview, the South reporters found that even on thin ice, the price war is still the consensus of all the dealers.

"The price war is not about how low prices are playing, but what is most important is how to stimulate consumers ' spending power." Fang Jianhua, founder and CEO of the network clothing brand, said to the South reporters that if the sale by 50 percent, plus a coupon and other inputs, calculate the gross margin of only about 40%. "This is a big promotion of our position is to achieve break-even on the line, more value is the brand can bring many new customers." Fang Jianhua said that this year, the cat year in the big promotion for its new users have 20,000.

Under this theme, a more frenzied war is being opened. This year, the cat dug 200 million yuan cash directly back to consumers, Jingdong early occupy a variety of media and advertising platform mainstream position, the introduction of all kinds of full-cut activities. The so-called fine management and depth of user data mining can not replace the overwhelming advertising and price reduction promotions, sales are still taking the margin as a test of the core indicators of the electricity quotient.

Jing Dong CMO Lan Ye that, in fact, low price is an important customer experience, if we buy this thing are bought very expensive, customer experience will not be too good. "So, Jingdong is to promote the whole industry chain optimization costs, so that users enjoy the benefits, involving customer experience and customer feelings of things we are more insistent." ”

and step by step Xun, its CEO Bu Guangzi in the south are interviewed by reporters that the most suitable to do the standard goods, if you mark class goods can not have very good price competitiveness will not be accepted by consumers. "To us, in Tencent's electricity quotient, the commodity price is we will hold in the next few years, because the Tencent electricity merchant in this market looks still is a post-entry person." After we find a direction today, we hope to grow faster in this field. We also know that at present domestic consumers are relatively sensitive to price, a large part of the consumer still has a cross platform parity of a habit. ”

Alibaba, the main platform route, is not going to sit on the sidelines. "I don't agree that we use prices as the only means. Conversely, I do not agree that, because the price seems more sensitive, we can not use the price of everything, because it is after all, an important means of marketing. "Wang Yulei, vice president of the cat, said to the South reporters," Perhaps the true loyal user he has been out of the whole price advantage, you have to give him some additional services. But for now most consumers, you have to give him a reason to buy things online. We never taboo to say that for some consumers, prices are very meaningful means. ”

According to the data given by the home, Jingdong Mall ten years of promotional activities from the sales are still in the growth trend. The ideal state that each player pursues is to build scale by price war, and when the scale is big enough, it can be done better in cost control, so it is possible to be close to profit while playing the price war.

But from the seller's point of view, Fang Jianhua, in the future is not appropriate to put all hope in the big promotion or price war. "There is no profit, and the second will allow some consumers to turn to the big promotion of cheap prices before buying." Fang Jianhua said that these problems had once appeared in the Cayman, and now the Mann is also stepping up to downplay the effect. He said that after the rapid introduction of a large number of new products, the German final normal day sales stable at 1 million.

On the other hand, with the increasing normalization, the price war has been gradually transformed into the marketing means of the electric business enterprise by the competition means of competing for the market. For each electric business platform, follow may not be able to change their own market rank, but do not follow but it is possible to pull the gap between competitors.

The smoke is all back to reason

The Research Institute of Analysys International believes that the homogenization of the promotion of the form and the electricity market instability of the price system will become a major obstacle to the promotion of electric power in the future. Two days a small promotion, three days a big promotion will cause to the supplier and the consumer harm. An unstable price system can easily lead to poor user experience. This has been completely exposed from the tension and user evaluation of some of the electric business platforms and suppliers, but it has not aroused enough attention of the electric business enterprises.

Control of the supply chain is the struggle behind the price war, only to obtain a greater voice in the supplier to maintain the price advantage, and the advantages of the transmission to the end of the sales. So 6 18 just finished, Xun to convene more than 500 suppliers to meet. Bu Guangzi said that at present in the traditional retail or current electric business platform, brand manufacturers and channels are often the interests of the game relationship, but Xun to introduce integrated supply chain platform, large data platform, unified open logistics platform, supply chain financial platform, including the four core platform to change this relationship.

In fact, compared to the past, the various platforms today more emphasis on the supplier of "value-added" services. The direction of the future differentiation competition is to share the strong logistics system with the sellers. And the cat is more highly praised for its "return period", as well as a combination of small micro-finance Alibaba launched a variety of new financial services, such as the small micro-loan order mortgage, to reduce the pressure on the sellers in the big promotion.

But in the case of Cheng Weixiong, the vice president of the company, the current price war is still closely linked to the early "inventory" adjustment, represented by the apparel industry. "The entire industry is expected to complete the adjustment in two years, then the model will be the way to win the order of the" rational, low price is to meet the needs of consumers the only worthy brand and platform to think together. "Cheng Weixiong said. This means that when the company completes the round of inventory cleaning, whether it is willing to continue to cater to the Taiwanese "Low-cost" killer in return for sales of the surge there are still variables.