Electricity dealers return to the savage era price war intensified by the batch thirst

The cat in the East confrontation

Newspaper reporter Lu Jing Beijing report

Without any new ideas, electric business enterprises to crack the way the operation is still cut meat.

Recently, the Cat Electrical Mall sold 200 million yuan to subsidize businesses to carry out price promotion. The activity time will continue from May to August. Because there is news that Jingdong Mall will be listed in the U.S. in the second half of this year, the industry analysis of the cat is intended to disrupt the mall listing process.

Jingdong Mall said later, in May or June, will be 500 million yuan on home appliance products to promote, to pull big home appliances sales. In addition, Suning Tesco also responded: May 16 ~ 18th to start the "E18 May season" large-scale promotional activities, plans to invest 2 billion yuan special supply and 400 million yuan concessions, known to penetrate the entire net price.

So far, the electric business big guy almost all joined the price war, bleeds the price unstoppable. No matter winner, this war is difficult to conceal the sad color.

"Live target" Jing Dong

According to the CAT announced the plan, the cat will be in nearly thousands of individual products independent commercial profit sales activities on the basis of direct cash subsidy method to reduce prices, the time span of 3 months, covering the entire 3C selling season.

The first round starts from May 7 and ends on 10th. However, the cat has not disclosed the next few rounds of the specific time of the reduction activities. Tan Yu, general manager of Cat Electric City, said that this promotion contains almost all the 3C digital appliances brand, is the largest electrical appliance city scale and the most.

The operation of the cat's release and implementation time is very tight. May 2, the day Cat home Appliances Mall more than 800 3C brand manufacturers opened a closed-door meeting, including Lenovo and other corporate giants. Tan Yu at that time said, "Electric City will invest heavily, to create the lowest price, the category of the most complete, months of the campaign." Although the whole speech no sword refers to any competitor, but the industry believes that today, the electric circle can not only skillfully play the price war, but also in the 3C goods have a good contribution to the enterprise only Jingdong mall.

The cat's predecessor is Ma Yun (micro-bo) in charge of Taobao Mall, the model is still along the continued. Starting from the two quarter of this year, when, Suning and other purchases have provoked a price war, in order to expect to occupy a larger market in the chaos. And the Sky Cat and Jingdong Mall has been sitting still.

In fact, Jingdong Mall in the fierce competition in the electric circle of the main strategy of the siege is to play a price war, although it did not do too much action in 2012 years, but because of its capital chain tension and the rumors of the preparation of the IPO has been concerned, and the previous, Dangdang CEO Guoqing (Micro-Bo) repeatedly blew up Jingdong mall capital chain tension problem, BEIJING-East listed self-help imminent.

"In the Internet circle of the listing is ashore, will have the right to speak and market dominance, has been in the electric business district, the boss of the cat and other electric enterprises will not be able to easily market Beijing-east." "Analysys International analyst Guo Yang said.

E-commerce observer Ruzenwang that, in 2011, the Cat Electric City is the second largest 3C appliance platform after Beijing east, and 3 C is another growth point of the cat after the clothing, encirclement and suppression of the Jing-dong is the only way to achieve the cat.

At present, the pressure seems to be greater, in the capital chain tight situation, a big investment of 500 million yuan to fight, will lead to the listing is blocked, such as short-term can not be listed, may also affect the normal operation of enterprises.

Thirst

There is no sign of this massive price war. From the beginning of the fourth quarter of 2011, subject to the decline in profits and sustained substantial losses, the electricity business has returned to the rational, starting the price of different ranges of action. And industry insiders also generally believe that the operation of the electric business model will be mature.

But due to market share and the pressure of corporate exposure, the price increase action lasted only two quarters. April 16, Suning easy to buy to break the balance, the first announced investment of 1 billion yuan special best-selling source and on billion concessions to concentrate on the market, hundreds of thousands of commodity prices over 30%. Subsequently, Gome (micro-blog), Amazon successively joined the "Price Alliance."

In fact, the gross profit margin of 3 C is very low, and the home appliance Enterprise is relies on the scale rebate to obtain the profit, the scale is bigger, the rebate is bigger, therefore the competition for the home appliance enterprise, finally must be by the scale wins, but 3C electric business enterprise also is so.

In terms of market share, the Cat 2011 volume accounted for the first domestic business, accounting for 53% of the market share. But Jing Dong has been occupying 3C electric business King's title.

Because the cat is only a platform for electricity, not involved in the operation of electrical brand products. Industry insiders believe that the days of the cat will be the first to ask the brand to reduce prices, to below or not higher than the price of similar competitors to sell. In addition, in order to make the manufacturers more space, the cat is likely to reduce its commission during the promotional period. "The cat has given up the purpose of making money, its own investment has increased, the amount of recovery is decreasing." "Guo Yang said.

The test of the cat and the relationship between the manufacturers. Because the goods to the manufacturers of small profits, and now need to echo the platform again bleeding let, manufacturers may flee because of pressure. In addition, Gome, suning and other platforms frequently exerting force, and the cat will compete for vendor resources.

Guo Yang that for every price war for the electric business enterprises, the cost of goods subsidies are second, logistics, distribution, after sale are the bulk of the money, if only the head regardless of the tail will affect the company's future reputation and brand.

At present, the market structure is not clear, the audience group of the electric business is the incubation period. In addition to the electricity business than the line under the channel manufacturers the biggest advantage is the price, so the price war will continue for a long time.