China Home Appliances 30

China home Appliances 30, the price war One by one through, from manufacturing to retail, from the line down to the line, stirring, Shingma!

Jing Dong Liu is in the limelight. However how can forget, the former household appliance Circle two price war leader eldest brother has eventful thick.

Today, when you have the cash to buy the capital East appliance, Tiger Sniff for you to inventory the three national electricity (manufacturing, retail) History of the most famous "price butcher" tactics. Their play, tactics, broken point, with clear characteristics of the times, memorable.

Three in turn is Nirunfeng, Huang Guangyu, Liu.

Before we let them all go out, we will look at the views of all the parties on the Beijing-East Electric and Suning. The Yue of the 0-point research consultancy says:

"This war Su Ning such as the Warring States Qin, Jing Dong Zhao, gome, such as Chu." BEIJING-Soviet victory is not related to the United States, suning strategic layout overall this war on its strategy has been entangled, but compared with the east, Jingdong more dangerous word. ”

But Sien Enterprise Consultant Chairman Jiang Ruxiang obviously don't think so, he felt that this is representative of the 20th century traditional channels of Su Ning and the representative of the 21st Century network channel of Jing Dong Two models of the contest, from the nature, Su Ning lost the opportunity.

Who do you agree with?

Tiger Sniff more agreed to Jiang Ruxiang. In fact, we can see in the following retrospective summary, in the 1990 's-2000 's-2010 years, each era price war and the representative "Butcher", its means of holding hostage is not so simple, behind all hit the times and industry at that time pain point. Nirunfeng Price (in fact, when he first moved prices, is the increase), moved a pricing mechanism under the planned economy system of a brick, to reduce the means in that era successfully pry the supply and demand lever. Huang's price war, relying on the channel, his domineering from the home appliance products into the production of excess and homogeneity of the era, and his hands and hold a share of the advantages (later is a relative monopoly) channel, so want to kill "second", eminence. Liu's price war, as Jiang Ruxiang said, represents a new model and even the rise of new consumers. Ginger summed up the Liu "very two, but very reliable", "very cow, but very hard work," very blow, but very close "," very blunt, but very real "characteristics, to meet the new generation of consumer values, this is still in the traditional mode, vision, team ethos of the values of the Su Ning, concocted not out of the marketing gas field.

1990 's: Nirunfeng

Price War Facts:

"China entrepreneur" magazine has reported that

1989, when August, the state levy color TV special consumption tax, Changhong Mister Nirunfeng According to market situation, take the lead in the domestic color TV set price reduction of 300 yuan decision, start stagnant color TV market, break the sales deadlock, so that the funds quickly back, saved up at that time has been troubled Changhong.

This is the first time in the history of Chinese home Appliances "price war".

1996, in the face of "foreign color TV" in the grim market situation, Nirunfeng once again picked up the price of weapons, the first to attack the price war. The year March 26, Changhong announced from now on, Changhong all brand color TV set price sales, the overall price range of up to 18%, which is known as the "stunning price jump."

At that time, many people thought Nirunfeng this was "suicide". But it turns out, Changhong obtained a large number of orders, color TV market share rose, from 1995 to 22% soared to 35%, thus becoming China's real color TV brand first.

Failure：

But the NI price war did not turn around in the late stages of his entrepreneurial career. 1999, Changhong price reduction has not reached the goal of seizing market share, Nirunfeng "class", two years later, again as CEO, another sacrifice "price war" recruit, still not spirit, because the price of color TV has actually dropped, and in the years of price war, consumers are also difficult to be stimulated. When the industry's overall profit fell to only two or three points, changhong such a "Price butcher" by peer grudge. "Years of price war, consumers, distributors, suppliers, including local governments and other parties are implicated, Changhong therefore four embattled, in the market step by step to defeat." ”

Controversy:

Changhong set up a weak enterprise and quickly expand the model, but did not establish a profit model, so fell "big but not strong" of the "."

But many years later, Skyworth Group president Xuebin expressed his admiration for Nirunfeng:

1996 in the whole market is very chaotic, he dared to start a price war, this price war on the industry itself is hurt, this is a double-edged sword, the domestic brand has hurt, but it brings what result? is the relative concentration of the domestic market, the formation of the operation of the oligarch, if it is said to disrupt the war, or the situation of the warlords, the industry will be very messy, it is difficult to form a more powerful force to resist foreign competition. Guang launched the price war, although everyone is very difficult, live very hard, we can not make money, enterprises for a long period of time can not earn money, some of the survival ability of a little, resistance close to the enterprise will not past winter, froze to death, the rest is strong, or survival ability is very powerful, This also exercises the remaining group of enterprises to gather international competitiveness, which is related to the price war waged by Guang.

Of course, some people say Guang is the boss of the industry, this boss did not bring a good head, but we turn to see, this blood brings is the survival of the ability to improve, and finally the Chinese market in the competition with foreign brands won the initiative, this is a very important reason, from this point of view, I still very much admire Nirunfeng.

Ending：

With the rise of Gome, Suning and other big retailers, Changhong and other home appliance manufacturers in the industry chain discourse on the beginning of the loss of power.

So we saw the second person who raised the price knife: Huang Guangyu.

2000 's: Huang Guangyu

Price War Facts:

According to "China Entrepreneur" report:

June 2005, Yongle high profile into Nanjing, announced that the price will be priced in Nanjing home appliances market price pull down 10%-15%, in Yongle set off the price war hastily after the United States. Gome will be the last station of the first-tier city layout in Nanjing, Gome chairman Huang Guangyu, said, "Spell three years does not profit, will Nanjing home appliances market pull down 10%-15%." ”

In order to attract consumers, Gome asked suppliers to provide a large number of extremely low prices of promotional items, which led to the opening of Gome's Nanjing shop in the early hours of July 23, a dramatic scene, said that the door opened, most of the influx of people are suppliers, because the price of promotional items too low, "bleeding Suppliers helpless under this unwise decision to buy the promotional items back.

The price war and vicious competition bloody, even let several bosses have to sit down regularly conclave to control the price war.

But it's just a game on the table. To maintain a little bit of decency, under the table, pinch.

July 25, 2006, Gome acquisition old Yongle, Huang Guangyu immediately to the second Su Ning launched price war. He said: "The merged new company has a stronger price competitiveness, in the merger and competition with competitors will continue and increase price war." ”

July 31, Huang Guangyu said: "Hit to Su Ning and Gome merger." ”

Technique: In addition to the visible price reduction, Gome also from the supply chain to curb Su ning. It in the field of relative monopoly advantage, intimidate suppliers can not give Su ning any support, can not participate in all of Su Ning's promotional activities, if the supplier in violation of GOME requirements, the United States will be severely punished.

Failure：

Gome in the price of the killing and high-handed, in fact, can not kill suning in a short time, instead, the United States suffered from internal injuries, which soon reflected in its report, Gome per store profitability quickly deteriorated. At the same time, in 2006, after the merger Yongle, 2007 Gome from Suning Hand grabbed the big, 2008, buy triple ... Gome has struggled to digest the bought assets after a series of acquisitions.

Under the heavy burden, it soon could not afford a price war.

In 2007, Mr. Chen, who became Gome's CEO, said that Gome would turn to an extended expansion and connotative development, the first of its size, not Gome's sole goal.

After two years, Huang Guangyu arrested, imprisoned, Chenhuang War, Suning overtook things, we all know.

From 2008 to 2010, is Suning appliance (002024, stock bar) The Golden Age of development, the old opponents trapped in prison and civil strife, suning lead, irresistible until, met the unfamiliar face before: Jingdong Mall.

2010 's: Liu

Price War Facts:

Liu since the 1.5 billion U.S. dollars, in the industry provoked a "price war" has been several times. The latest this time, is yesterday (August 13) he announced on Weibo: Jingdong all electricity will be in the next three years to maintain 0 gross margin, and promised Jingdong Mall "all of us to the electricity guarantee than Gome, suning chain cheaper than at least 10%."

Play characteristics: 1, the first time to the social media (micro-BO) declared war. Think of that year, whether it is Nirunfeng or Huang Guangyu, hit the price war has carried out a large number of media advertising, and Liu extremely effective control of the free microblogging, shouts between, the BoE important trends, the CEO of the gas field directly projected to his 1.55 million fans and even more onlookers and consumers. In addition, he also issued in the country to recruit 5,000 U.S. and Soviet price intelligence agents activities, claiming that each person is not less than 3000 yuan per month income. It doesn't matter how much this 5,000-point-east BoE can recruit, and it doesn't matter how many months of money it can pay. The key is the Beijing-East launched a "national" price war, "socialization" price war, in this "people" spontaneous dissemination and participation in the marketing campaign, consumers were Jingdong and Liu gas field deep infection, Do not think the marketing of the disturbance, the opposite thought happy. This is the former NI, Huang two people in marketing completely incomparable characteristics of the times. We still remember that in 1991, Nirunfeng was wearing promotional ribbons in Chengdu Department store to sell their own color TV, smile to the customer scene?

2, the surface dozen commodity prices, is actually hit the rival stock price.

In order to raise the shares of Suning electric appliances, jindong individuals will be a considerable portion of their shares pledged to go out in exchange for trust and mergers and acquisitions loans. In the process, because of the price of Suning appliance stock fell, Jindong also had to add a pledge of equity. This left Su ning a weak link in the capital level. On August 13, while announcing the price war, he claimed to have never attacked rival Liu in addition to price cuts, suggesting that the shares were not low enough, compared with the shares of Best Buy, which is being privatized.

In the evening, some people on the micro-blog analysis, price war and these hints, are further highlighting the bleak prospects of the Suning line, and then the price of SU Suning continue to go down, let Jindong again pledged equity, otherwise the trust company to sell, suning to the risk, far from the price war so simple.

Nirunfeng and Huang Guangyu finally by himself launched the "price war" into the mire, no era of price war can be a lifetime. As some academics say, "All price wars are harmful to the whole industry, as the reference prices of consumers will be reduced and the market value will be dragged down, and when the market profits are not properly carried out, the willingness of manufacturers to update their products will also be affected, and the development in the long run will be affected, The remaining survivors of the game need to work hard to rebalance the market. "(Yang Shi of the University of Hong Kong)

Liu This set of price war can hit how long, then why and failure, Liu will not be alert before the failure to give up, only to leave time to answer.

(Source: Tiger olfactory net, original link: http://www.huxiu.com/article/2675/1.html)