Electric business War ignites consumer demand: whether growth is sustainable remains to be seen

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Newspaper reporter Lu Xianwen

The latest statistics show that June the country's 50 key large retail enterprises sales of goods better than expected, sales growth of nearly 17% year-on-year, to achieve the highest growth rate this year.

The revival of retail consumer goods is related to the "most fierce" price war staged by domestic electric dealers in June. Into the June, Jingdong Mall, the cat, Suning easy to buy, Amazon China and other electric giants hit the price war, have to various forms of online goods to carry out a major promotional efforts. Statistics show that during the promotional period, Jingdong Mall apparel commodity orders increased by 900% over the same period last year. And the day of the Cat Electric City only June 18 morning, the telecom version of the iphone 4S sales reached nearly 10 million yuan ...

The "profit-making yell" of the electric dealer does stimulate consumer demand, but it remains to be seen whether the growth of domestic consumption is sustainable.

From the overall observation, the first half of the domestic online retail market showed a decline in the size of transactions, the trend of business growth. According to Analysys International quarterly monitoring of China's online retail market in the first quarter of 2012, China's online retail market was trading at 218.8 billion yuan in the first quarter of 2012, down 4% per cent on a month-on-month basis, but the volume of the transactions was nearly 8%. The trend is not difficult to judge, along with the big electric business more "all-inclusive", they will grasp the voice of the network retail, and then "lead" consumer domestic demand "upgrade".

Is price warfare valuable?

"Losses are necessary and price wars must be fought." I said in the last six months, the price war may take another three years to end, now seems to accelerate, because the more brutal, the end time will be faster. "At the end of May, where the customer prudential product CEO aged such a strong expression of gunpowder," if there is no courage to break the wrist, do not go to the electric dealer this basin of water. "The Millet handset founder Lei also agrees with the old view, he said, the electricity merchant price war also will be more brutal."

Now look, the price war accelerated indeed as scheduled, into the June, this is the traditional retail trade in the relatively low season, and many electric dealers simply to use crazy promotional, "made" out of a peak season.

One months ago, "6.18" is the day of the Jingdong Mall celebration, however, a melee makes this is the protagonist of the celebration is blurred focus. In order to meet the store, Jingdong Mall from the beginning of June began to build momentum, claiming to invest 1 billion yuan to start "the most powerful store celebration month" activities. The cat and Suning are the first to respond, Sando Mamang, with promotions to deal with promotions. The cat to the consumer cash red envelopes, is limited only on June 18 on the day of Use, and Beijing East head-on confrontation with fire and fire. Subsequently, Gome Online mall, new egg nets, Dangdang, Bowser nets, Amazon China, Xun nets, such as the market share of the front of the electricity companies sit still, have taken out the attention of the promotional program, and move out how much billion to let the scale.

Since June, the price of the electricity dealers in hand-to-hand combat by the industry set up such a theme "encirclement and suppression of Beijing East." Why to encirclement and suppression of Beijing East, nothing more than the Beijing-east from the listing target is getting closer. Eric Su Yanyan, senior analyst, believes that the power companies to deal with Beijing-east, on the one hand can use public opinion hot spot to enlarge their size, on the other hand, can also restrain rivals, such as lower jingdong valuation of the listing.

Research shows that Taobao "double 11" promotional period, the appliance business enterprises even do not do too much marketing, orders will be increased by more than 30%. Therefore, the electric business is unwilling to let go of each big electric dealer to carry on the big promotion time, seeks to let own sale a step more. Of course, they are also worried that once they do not make a sound, orders will be diverted, the consumption of cake is so large, people eat more, it means that someone will be hungry.

However, from the point of view of Jingdong, the June scuffle was more than a busy, but obviously did not achieve the desired effect. Jingdong Mall in the first half of the results show that the company's sales growth over 120% year-on-year, turnover growth of 161%. The two figures are more beautiful than others. The "desolate" net profit of another data is negative. This is obviously not a good report before the listing. So, the smoke has not dispersed, jingdong and ignited a new round of price war fuse. July 16, Liu, chairman and CEO of Jingdong Mall announced that the third to fourth quarter of this year will set off a new round of "the largest, most tragic, most comprehensive" price war, Beijing east to continue to lead the price war. Liu also said, "If the price is not the lowest, who will leave", pointing to the major competitors, and promised to let the user experience a step further. It is reported that the specific measures will be launched at the end of this month.

This time, did not participate in the "6.18" War of all the goods also can't restrain. On the same day, where customers will be announced in July a round is called "Every customer history of the greatest strength" feedback user activities, in 3 days sold 50,000 units of Millet mobile phone to earn enough popularity, where Sir Network launched a full 150 minus 30 activities. Van Wang Chunqi, senior vice president of the company, said that half of the margin to give back to the user, where the customer's own brand 40% of the high margin to ensure that the promotion of the emboldened. Whether the customer is the initiative to join the price war, or was involved in the battle? Gio Hongyu, a guest PR director, insists that every customer is doing promotional arrangements at their own pace.

In any case, since the war has started, it will not end without a winner. Analysts expect the price war to come to an end, and the electric-business landscape may shuffle again, and the era of market decisions by several big industry oligarchs is coming. The journey may not be a sprint, but a marathon, as Liu wrote on Weibo on July 18: "Many people criticize the electricity dealers for not having the technical content to fight the price war, in fact, the price war needs not only extremely high technology." Also have super strength, perseverance and endurance! ”

is the consumer buying it?

If the amount of profits claimed by these electricity dealers is added, the amount is already over 5 billion yuan, and behind the considerable figures, are the consumers really getting the benefits?

First look at the business disclosure of promotional performance. Cat said that the June 18 cat home page on average per second click as high as 250,000 times, Cat Electric city sales rose 400% over the same period last year. Jingdong said that the store celebrates a day of 1.016 billion, the best one-day sales performance, an effective daily order 1.5 million orders.

The voice is not down, questioning sound. The most acute voice is "Jingdong ' 6 18 ' real turnover only a mere 300 million yuan, and because the east 90% of the orders are cod, the actual payment rate is only 80%." Excluding these factors, the actual transaction estimate is only 240 million yuan. "The question for the cat is that last year's average daily sales in the city were not disclosed, so it is not known how much of the 400% growth has reached." There are comments that this actually reflects from a side of the sales situation is not optimistic, so businesses can only use vague concepts to "confuse".

From the merchant here can not explore the degree of "moisture", but the intuitive feelings of consumers can explain the problem. Experienced a lot of thunder, rain promotion, consumers will inevitably numb tired, for this price war, many consumers are the same feeling: concessions are far from sounding so shocking, and to get concessions is also a lot of threshold.

For example, a 100-dollar coupon issued by an electric dealer's website need a single consumption of more than 500 yuan to use, and can not be used, that is, a single consumption of 5000 yuan can still only use a coupon; the most favorable commodity of a certain electric dealer, then show out out of stock from the activity from the beginning, until the activity is over, have customer "second kill "To the unknown, and to receive a cash coupon issued by a certain electric dealer, must be a certain level of users of the site, ordinary users and new users do not touch at all; and the consumer found that the electricity dealers also play a shopping mall promotion that set, the first price discounts, although just enough to reduce the fulfilment of the words, or can be cheaper than the previous price, But consumers still feel cheated.

There are media on the mall's promotional activities to compare prices, found that 8 pages of the main push 317 items, only 38 commodity prices than other businesses lower the price of goods, but also a lot of price increases significantly. No wonder consumers are not buying it. Expert analysis, the capital of Beijing east itself tight, and raise margin impact IPO, is its fall the root cause of this round of price war. It is really a big problem, especially for 3C products, whose gross margin is notoriously low, which explains why all the electric dealers who started from 3C are actively expanding their sales lines and introducing higher-margin clothing and cosmetics.

For the price war will continue to be fatigue bombing, consumers also have to say, rather than make so many smoke and mirrors of promotional tricks, rather than real repair services This class, the electricity quotient is increasingly homogeneous, the price will not be too much, therefore, when the price becomes the normal, in the logistics distribution, After-sales service and other links to improve the quality may be the electrical business breakthrough. At least from the current situation, Jingdong and cat and other industry leaders in these areas still have a lot of unsatisfactory, there is a great room for improvement.

"Digging up domestic demand" with electricity dealers

Electric dealers staged a show on the stage, while in Taiwan, the suppliers and subcontractors of the electric dealers were practising "internal strength".

Electric dealers can be said to be the internet economy and the real economy of the most closely related part of this week, the reporter visited a number of electric dealers downstream "supporting" enterprises, to understand how they and the electric business together "digging domestic demand", how to serve the electrical business while expanding their own.

Oriental International Entrepreneurship Minhang Garment Industry Co., Ltd. is a company specializing in the production of men's shirts in the enterprise, the current main production of the brand is all customers and gold. Since 2009, the company has cooperated with Van customers, which has reached about 800,000 shirts this year, close to half of the factory's annual output. Talking with the electric business Enterprise's cooperation, the company general manager Zhou Xiping very is regrets, "every guest these two years development very fast, they to the quality request is also very high." We are very happy to cooperate with the electronic business enterprises such as Van, on the one hand, their orders are relatively large, the number of general single paragraph to reach tens of thousands of pieces, this is the clothing industry's favorite order, because the large number of single paragraph means higher production efficiency; On the other hand, we also learn how to adapt to the changing market quickly. Zhou Xiping told reporters, has been the role of processors, and now they are also beginning to try to do their own brand, through the network channel sales, "just started to do, the results are very general, but we have confidence in the future." ”

"We're going to launch our own brand and we're going to buy." "Jiangsu Century Liaoyuan Knitting Co., Ltd. Chairman Huang Jishi also disclosed the intention to enter E-commerce." The company is located in Nantong, Jiangsu Province has more than 20 years of history, the main production of knitted garments, partners throughout the world, including Adidas, H&m, ZARA, decathlon, Sharks, Cardin Cashmere, domestic orders are mainly from the visitors and the United States Granville. 2011, the company output of 4.5 million pieces, output value of more than 200 million yuan. This year's output is estimated to reach 5.2 million, of which the order of customers accounts for about 1/4. "After working with the Huang Jishi, we will also look at our clients ' evaluation of our OEM products, which will help us improve our technology and technology and provide consumers with better products," he said. "He also believes that one of the great advantages of working with electricity dealers is that they have large orders, some basic paragraph can even reach 20.3 million pieces, also because of this reason, the increase in productivity directly brought about the cost of decline," so where customers can do high quality low-priced, I personally very optimistic about the future development of the electric business. " ”

To the century A prairie fire such a company undertook a considerable proportion of foreign trade orders of enterprises, reporters are also very interested to know whether the global economy, including the Chinese economy in the first half of this year, the plight of the encounter has adversely affected it? Huang Jishi's answer was somewhat surprising, "Our foreign orders are growing, and the company has procured new machinery and equipment in the first half of the year." At the time, foreign suppliers were also puzzled as to why they should buy expensive machines when the economic environment was not good. Our thinking is very clear, now to the supplier to buy equipment, you can get very good discount, we are in reserve strength for tomorrow. "Huang Jishi finally bare:" The economic situation is not good, orders will be more concentrated, but also to compete hard strength, at this time, the overall strength of the enterprise will ' speak '. In addition, according to Huang Jishi revealed that the century is a prairie fire in Shandong Construction plant, considering Nantong in the next some time human resources may encounter bottlenecks, they take the initiative to the relatively rich human resources in Shandong to develop a new front.

Unlike the top two, Nantong new high printing and Dyeing Co., Ltd. was originally just raw material suppliers, for the electric dealer to provide cloth and printing and dyeing services, but in the process of cooperation with the electric business, the enterprise also quietly transformation, began to do the garment processing business, but also the production line has been built overseas. Tang Qun, chairman and general manager of the company, told reporters since the global financial crisis, their orders are indeed in decline, this year, Europe's orders have been reduced by about 30%, in the face of the grim situation, they explore the breakthrough path to the lower cost of Bangladesh to build factories, the factory is still in its infancy, as envisaged, In the future, we should make use of the local abundant raw materials such as cotton to make local purchasing, local production and overseas sales.

Failure of the enterprises have their own failures, but the successful enterprise is very similar, they are conscientious, step, they insight into the market, should be potential and change, they are good at thinking, the courage to innovate ... They know that what consumers really need is a product with lower prices and better quality.

From the entity to the electricity business is the development trend, but the reporter in the entity enterprise to see the lack of down-to-earth, impetuous electric dealers should also from the noisy price war to withdraw, in big Voldemort try to calmly think?