Electricity dealer price war, finally can't fight down

Qingming Festival rains in succession, the present electric business wants to rains. Before the tomb-sweeping day, gome online micro-blog to Gome Senior vice President, Gome online general manager Shangui First name, issued a "eulogy", entitled "The Memory of the dead you look forward to living with us." Although the wording of the "eulogy" is somewhat drastic, it also reflects the real dilemma of the electric dealers: in the price war, the group buying website, the vertical electric dealer round to close down, the living big electric dealer actually also embarrassed the burden.

Is there no other way to compete with electricity dealers besides the price war?

No bottom line price war leads to huge losses

At the end of March, Suning and Gome issued annual reports. In both reports, online business losses are seen as one of the reasons for unsatisfactory performance.

In the past year, Gome's business loss rate of about 15% to 20%, the total amount of nearly 700 million yuan, including the listed company's losses amounted to 500 million yuan. Suning last year's sales revenue amounted to 16.716 billion yuan, an increase of 157.9%, but also "complained": a large number of Internet enterprises in the foreign capital, regardless of cost, relying solely on price competition, the market for predatory possession, not only on the domestic traditional retail industry has an impact, Also caused damage to the manufacturing and market-regulated order. Weimin, vice chairman of Suningyun, said that the problem of irrational competition in the electric business industry also had an impact on the gross margin of online businesses, and there was still a loss on the short-term inside business.

Shangui The electric dealer who has "fallen down" since last year: they have the surname "Regiment" (group purchase website), some surname "hang" (vertical electricity quotient), but "arrive but long brutal price war of slaughter, pour in this piece of land, vanish". He believes that if the price war has killed everyone, only one or two electric dealers, then can imagine, "Monopoly is born, there will be no" consumer is God "argument. ”

In fact, consumers have doubts about the price of electricity dealers. Many people choose the network shopping, it is important to see the low price, at the same time that the current series of companies are regular business, the quality of goods should be guaranteed, but the results sometimes counterproductive. Zhang in Nanjing had bought an air-conditioner on the internet, "it was bought at the time of the price war, the price is more than 800 pieces cheaper than the shop." Mr. Zhang thought he had picked up a big bargain at first, but after a single worry. First delay the shipment, after waiting for nearly two weeks, the air-conditioning finally arrived, found that the air conditioning panel in the process of delivery rupture, again, and waited for three or four days, before and after the last half of the month to put the air-conditioning installed in place, "the money is saved, but also make me miserable." ”

Price wars don't go away, but they're more rational.

In fact, from Suning, Gome to Beijing east, the recent "anti-price war" argument in the field of electrical business began to heat up.

Jingdong has started a number of price wars, has been the target of home appliances business. However, Jingdong Mall recently said that the price competition phase will be over, Jingdong will not pursue simple low price competition.

Suning Tesco did not avoid price wars. "For retailing, price competition is a timeless thing. However, all price competition has a prerequisite, is that you must be profitable, this is called the Real Master competition. "Weimin said.

In fact, last year, one after another, the price war of electricity dealers has aroused the attention of relevant departments. In March this year, the departments concerned have made certain restrictions on the price war of electricity dealers. Industry analysts therefore predict that this year's electricity price war will not be as fierce as last year.

"Turning a profit" is becoming a major target for the electric dealers this year. Jingdong Mall announced the implementation of the "recuperation" strategy, said the quarter to achieve the real sense of profit, and in two days ago just changed the domain name, released the mascot, this is regarded as the industry is Jingdong Mall for the future outside the business expansion of storage power.

"The electric business should have thought about it long ago, if we still like last year that only know to fight the price war, dead is not one or two vertical electricity dealer so simple, the electricity merchant should return to the retail essence as soon as possible." Gome Online spokesman Pengliang said.

"This year, in the traditional promotional war period, the family did not take the initiative to set a price war, but will focus on the long-term development of the enterprise architecture integration, business promotion, image-building and other internal strength." This must be said to be the progress of electric commerce. "said Ruzenwang, an electric-business observer.

The price war is becoming a "value war"

April, the promotion of suning will continue to buy. In the words of Li Bin, an executive vice president of Suning, this is no longer a simple price war, but a global value war, "consumers can not only easy to buy from Suning to affordable goods, but also enjoy the" line up and down single, offline from the "and" offline experience, online purchase of convenience. "According to the understanding, in order to enhance the consumer's offline experience, Suning is planning to offer the goods from the store customers to provide express subsidy, to the non-electrical products return speed and other services to strengthen."

In order to deal with express prices, Holiday Express half-time, express delivery time and buyers do not butt, and other issues, the electric business platform more and more attention to include the community to collect goods, including the self-mention business. 1st, East China added "Hi-many" convenience stores become the day Cat community service Station partners. At this point, the Cat in Beijing, Shanghai, Hangzhou and other 22 cities a total of more than 2,600 convenience stores, community property Partners site online. Last week, Amazon China launched its own business with 100 family convenience stores in Shanghai.

Similarly, March 29, Jingdong "Abnormal weather automatic alert" service online. The new service is the Beijing-East "active service" of an attempt: through abnormal weather information identification, so that consumers more timely understanding of goods in the distribution of the situation may encounter.

The price war will not go away, but it will be implanted with more added value. Wu, a professor at Nanjing University's Business school, said that a short-term "price war" could really make the electricity business attractive to consumers, while also allowing consumers to get benefits. But a price war that is too low to violate economic rules will not last. Electric dealers should put more attention to after-sales service, distribution and installation, through comprehensive service capabilities to improve their competitiveness.

Lu Xianbo, Deputy secretary general of China Electronic Chamber of Commerce, said Gome's online summary of the past, Jingdong Mall issued a new logo and other measures, marking the competition will be from the blind price war to promote the enterprise scientific marketing model of competition. In the past, the electricity dealers in the price war while ignoring the feelings of consumers, but consumers are the electricity should strive for the market, how to enhance the consumer experience, improve after-sales service, to win the trust of consumers is the major electric dealers in the future marketing promotion of the primary goal.

Newspaper reporter Song Xiaohua Ti Yu Wang Xiaoying