Electricity quotient price war refraction industry collective panic aggravate market chaos

"Do not make money, but also to intercept jingdong." "With Suning Electric appliance Vice Chairman Weimin" command ", a" China electric business History of the largest, most tragic, the most comprehensive price war "recently in Suning and Jingdong mall between the fight. Electric business Industry price war, industry "farce" frequency is refraction electric business industry group lost?

Electric Dealer "lose a profit to make a yell"?

This is not the first time two electric dealers, the Spring Festival and Jingdong Mall June 18 during the celebration, has erupted two large-scale price war. In fact, in June has launched a promotional campaign also has Taobao's Day Cat Mall and Bowser, Dangdang, a store and other electric dealers. Data show that Jingdong, the cat, Suning easy to buy 7 electric companies, a total of 5.8 billion yuan in the summer home appliances price war, "frame" into a "brawl."

What's the picture of a loss-making yell?

"Attract attention. "A senior electric dealer told reporters that if the electric dealer does not create the concept, does not fight the mouth is only dead."

Suning easy to buy a person in charge frankly, want to grow scale, in addition to price war no other way. "Now there is a network price platform, who sell cheap internet a comparison at a glance, can not fool consumers, forcing everyone can only drop lower." ”

Jingdong Mall board Chairman and chief Executive officer Liu made clear that the larger the greater the safety scale is large enough to be in the supplier to get a bigger say, get a lower purchase price, it is possible to play the price edge near the profit. This year, Beijing east to achieve the size of 60 billion yuan this means that the price war will be more and more fierce. Liu said that the BoE will continue to lead the price war. "The company manager who is responsible for the product price is not the lowest, leave the class." ”

Can the burning of money last?

Public data show that 2011 Jing Dong Net loss of 1.3 billion yuan, gross margin of only 5.5%. Suning, which has continued to grow since 2004, has seen net profit fall by nearly 30% per cent in the first half of this year, and the performance report explains that the main factor that drags the overall performance is the investment in E-commerce. Set up the bowser network and Gome Online mall two electric platform of Gome, the first half of the net profit is a loss. In addition to the macro-economic impact, there is also a factor that has increased the development of E-commerce.

"Burning Money" forced Suning holding shareholder Jindong recently to personally held more than 400 million shares of Suning appliances restricted shares pledged to the trust company. This June, Jindong for the realization of suning appliance directional Additional, has held the total of 630.5 million shares of Suning appliance shares pledged to the trust company. July, Suning Electric completed a 4.7 billion yuan fund-raising, which is the largest since its listing. For the transformation of Su Ning, Jindong put all the net worth bite.

Burn money, Jingdong Mall even more. BEIJING-East sales rose more than 120% year-on-year, but net profit remained negative. Dangdang chairman Guoqing publicly said that Jingdong capital can only be maintained from August to December, Jing Dong is to make a money spend four money.

Does not make money, just became the electric dealer biggest selling point. A person in the investment industry joking, the current domestic many electric business website play is actually, "Burn Investor's money, please national Netizen's guest".

What should the electric dealer look like?

The current E-commerce profit model has been criticized. Household electrical Appliances industry experts, Paller Consulting senior director Luo Qingxi that, in essence, the current stage of domestic household electrical appliances net purchase enterprise so-called price war is more a kind of OTC capital into the field of the false industry appearance, its essence is the capital market to some of the power grid business channel of a price subsidy, The two sides are not able to provide consumers with the integrity and superiority of products and services, but simple low-cost gimmick.

In the eyes of critics, due to the lack of industrial chain system support, these enterprises can only stay in a simple price-fighting phase, relying on continuous financing to support the normal operation of enterprises. It is in this mode that is divorced from the essence of industrial development, most of the electric business enterprises under the guise of so-called low price, caused many problems of the electric business industry, exacerbated the current market chaos degree.

"Many of our electric companies use a lot of cost to do marketing, which fosters user habits, but also accumulates a large number of member base, but does not mean that users have very strong stickiness." "In the industry's view, the current domestic major electric power companies in addition to price war, saliva war, the lack of differentiated competition."

"Price war in the electric business rapid expansion period is a very effective killer, but if the price war is a long-term sacrifice of the industry reasonable profits and even large losses as the price, it is not a benign development model." Expressway, founder of Goutain Technology, believes that domestic electric business enterprises should return to the competition of comprehensive strength as soon as possible, especially how to improve the user experience and improve the service level.

"Electric business enterprises must first have a correct business model, and unswervingly implement, but also rely on meticulous management, pay attention to customer experience." "No. 1th Store chairman Gege that the electric business enterprise only through innovation, to build their core competitiveness, can be long-term development."