Electricity quotient price war tends to rational vertical electric quotient or will "reverse attack" 815

Close to August 15, this is a "sensitive" day for all electrical appliances dealers, following last year's "8 15 price war", several price wars this year are still in full swing, but in the face of this new round of price war, the appliance dealers are very low-key, seems to have a new price war plans and considerations.

On the other hand, the author believes that the price war in the commodity category gradually widened, is no longer the past household appliances, books and other goods, "The Big Game", with clothing, cosmetics and other market demand, the United States and makeup of the electrical business development and growth. And at present, the American makeup electric dealer's competition already is quite intense.

Rational game

Last August 14, Jingdong Mall CEO Liu Bursts two micro-blog, said "Jing-dong everyone electricity three years 0 gross margin", "Beijing East all everyone electric guarantee than Gome, suning chain cheaper than at least 10%", triggering the so-called "history of the most brutal" 8 15 electric dealer price war.

Liu's stance on Weibo attracted a response from rivals, Suning Tesco announced that all products, including home appliances, prices must be lower than the east, any net friend found that the price of suning is higher than the east, will immediately adjust prices and pay; GOME will sell nine cents.

The "Worst price war" ended with a paper "suspected price fraud" by the NDRC. But in Liu's view, the price war is not to put who down, but want to use the offline users to pull to the line, this is to preempt offline users a chance. Perhaps some people think that the price war is a successful marketing of Jingdong, its microblogging message through the million forwarding further enhance the visibility.

But the author thinks, the electricity merchant price war actually is the irrational practice, the competition between the electric business should not be the price competition, but should be the value competition, when the customer nurturance does not reduce the price, does not have the big promotion not to buy the custom, only pursues the prices not to pursue the value the time, the electric business enterprise will inevitably have to pay for the present sex behavior.

American Makeup Electric dealer aggravating August

This year 8 15 again, Su Ning routinely launches 12 anniversary large-scale promotion, Jingdong, Gome also routinely follow up to play the advertisement of Home appliance promotion, but, compared with last year, each household appliance is more low-key, to the price war, after all, finally evolved into farce of the No Brain price war, although won attention, But in the brand image of the three parties are losers, and even the entire electrical business integrity is broken.

In fact, in the 6 18 price war earlier this year, the big electric dealer flow rate has been less than last year 8 15 price war. In the face of the industry "kill 1000 self-damage 800" situation, the appliance business seems to be in the price war to become rational, the competition between the families are also changing to the difference, which includes the difference in goods and services differentiated.

For the integrated class of electrical business, in the short term to get rid of the price war is not too realistic, the top three have huge financial support behind, and the product has no difference leads to the user no brand loyalty, coupled with the emergence of some price-comparison plug-ins, is to make prices become transparent, consumers naturally who cheap to choose.

Also in August, the American makeup electric dealer in the beginning of the month also had an "anniversary" war, Le Bee network 5 years lead, Poly United States 3.5 weeks follow-up, the last day of the net in the absence of an anniversary can just come up with a recruit "to smash the United States", however, this can also be counted as a conventional price war category, after the first week of August, Several combatants took their own traffic and turnover, but this year, in August of 15, some of them changed.

The reverse attack of the vertical electric dealer

This week, the Lok Bee Network announced August 15 as "Talent Day", before the big hot 5 hair return, also added a 1-minute exemption (specific rules unknown), it seems to be the first big promotion of simple, but in fact, the meaning of a completely different, the key lies in the promotion of the product-talent brand.

The dilemma of the composite electric dealer is the product, it is difficult for users to generate brand loyalty to their own brands, while vertical electric dealers can be free through their own brands, users can not be loyal to the electrical business, but for the product is very easy to produce brand loyalty, therefore, the vertical electric operators or early or late will develop their own brands, Compared to food and other categories, based on the functional beauty of the brand will be relatively easy.

But the user is critical, especially with the United States have a close relationship between the case, and the Lok Bee network of the People's brand on the basis of its own brand is an upgrade, while adding a key element-the fan economy. Because beauty products want users to try new brands is difficult, and the talent of the brand can be a good solution to this problem. At the same time, belong to the eastern popular media business, but also played a role in fuelling, from the star, to product development and packaging, and then to the channel, all the independent mode, in the domestic difficult to replicate, therefore, efforts to improve the number of talent in the revenue of the brand in the proportion, is the Lok Bee network in the price war the biggest goal.

Opportunities and challenges coexist

For the author's point of view, there are people in the industry to express their views-for the electricity quotient, because each market share is relatively fixed, their user groups are increasingly stable, mutual contention, mutual poach bring new traffic and few users. At the same time, consumers are almost immune to the ever-bombing price war.

But it may be a good opportunity for a vertical electric trader, led by the electric trader in the US. The vertical electric dealer expands the product category according to own brand localization, in order to future development is more stable. The self-owned brand can gain more brand loyalty and profit margin for the vertical electric dealer, and will guide the whole industry to a more benign competition transition.

In addition, the ultimate goal of the price war is whether to help enterprises achieve profitability. It can be said that some of the electric business practices for the electric business of benign competition to broaden the train of thought, this type of vertical electric business of their own brand goods not only high gross profit margin, behind there are talent to support the economy, and simply rely on the introduction of brands, the idea of increasing the category, perhaps the

But the war has always won and won, the price war way to help the industry quickly shuffle, in the process, the supply chain strong electric business enterprises can not only survive, but also occasion expand their market share. On the other hand, if a weak electric dealer is careless, it may be forced out of the control.