Electricity Trader Platform price war a mire that cannot extricate oneself

Source: Internet
Author: User
Keywords Electricity quotient cannot Mire deep-set

Intermediary transaction http://www.aliyun.com/zixun/aggregation/6858.html ">seo diagnose Taobao guest cloud host technology Hall

In the electric business platform surging today, the battle between the platforms is becoming increasingly fierce, and this fight the most important siege weapons, is the price. As to how far this price war has soured, there is a phenomenon that can explain the problem. June Beijing East Anniversary Celebration, the cat, Suning, Gome, when, Xun and other large integrated electric platform group, Weibo staged a "do not" series of the Copy war, electric business platform activities can become a micro-bo marketing case, like a singing competition at the end of the sun to get the muscles, lost the original original intention, such a game, who loses who win?

1. Why do they have a price war?

Show your platform value. In fact, for the large comprehensive electric platform, the value can have a lot of aspects, such as logistics system, genuine protection, category coverage, etc., but these are not enough to counter the "low price" to the consumer to bring the nerve touch. So, in this war, there's only one value per platform to show--I'm cheaper! This is the most direct and effective means to touch and attract consumers at present. That for the consumer most concerned about the issue, the platform is also incumbent on to prove their ability in this area, so the price war, who will make their own dozen create the lowest price, the platform to their own value as much as possible to enlarge, and then enlarge.

Spend someone else's money and make yourself a success. The "Others" here include two types of people, one is the platform of investors, the other is the platform of suppliers. The answer to the first category of people is "strategic repression", such people spend a good money, will attract more money, jingdong a round, b round, C round, one round, endless. But for the second kind of people's money is not so easy, because your platform is not strategic with their own not much relationship, so the result of this kind of money is not good, one, one after another, panic fled.

Kills 1000, cuts 800. Now the domestic electricity market share, has tended to saturation state, so is a limited platform in the sharing of the same group, this customer if not your, that is the opponents. We are now increasingly able to understand this price war as a marketing tool (and more and more marketing flavor), that the purpose of marketing? The most basic one, let more people know. Because now the net buys the crowd to the mainstream electric business platform, is has the very high coincidence degree, therefore is difficult to say consumer's platform ownership, among them competes is the consumer's hand net buys the quota. For example, the average consumer spending is 500, then I let him spend 400 on my platform, the other platform can only be divided into 100 of the amount, but if I only let him spend 200 on me, then the other platform can get 300 of the quota split. Therefore, it is not profitable to say, you must first put this amount of consumption, so that other points of the amount as little as possible, or even less. And that's all on the premise that consumers should know. So kill 1000, suicide 800 the whole meaning is that the price war between the platform is to let each other lose money to sell also do not sell out.

2. What does price war bring

Increasingly no peak sales. At the beginning of the price of electricity, the performance has a greater increase, because consumers for the price war, feel fresh and exciting, more willing to release their own quantitative consumption quota. But as the power business celebrated its birthdays (the 3.5-year-old birthday), so that consumers are less responsive to this kind of price war, and more cautious to dominate their own hands, which leads to a price war sales performance increasingly flat, but the official always like to deceive themselves, You go see them. Performance reports, the most frequently used word is "another record high."

Overdraft-dead loop. Overdraft, refers to the early overdraft of the user's consumption limit, when the user has a new amount of time, and then overdrawn the next stage of the amount, although this will help to improve the user's network consumption habits and investment, but the premise is the first platform to "cut", and secondly, this overdraft mode, will produce irrational "impulsive consumption", This would make consumers less likely to appreciate the value of the deals that were done by the promotional campaign. Dead cycle is the platform forever overdraft users "future consumption", and the future dimension is more and more big, this is like a bubble, when the "future" is far enough, the relationship between the platform and consumers will be broken, the price war will then lose any significance.

Watching more and more users. This is not the same type of user as the previous "Overdraft user". "Overdraft users" are more likely to just enter the online life of the crowd, and the "wait-and-see users" here, tend to mature online shopping crowd. You may encounter such a thing, when the 6.18 War, when you because of price concessions to buy a product you do not need, you or the people around you, will say to you, no longer wait, see "Double 11" when what price? Whether you end up with a deal or not, the sound must have happened. So this polarization of the user attitude, will derive an increasingly unhealthy online shopping environment.

3. Other negative effects of price wars

In fact, the predecessor of the price war should be promotional activities, there is nothing wrong with this as a means of commercial operation, but now in the price war, you are increasingly difficult to find "thank users", "deal with inventory" and other reasonable reasons, the current price war is increasingly a kind of forced to follow and bite the bullet on the strategic follow-up, On the basis of the lost nature, health and reasonable nature is difficult to find.

Frequent price wars, so that the term "anniversary" has become a flavor, it has become more of a gimmick, with consumers of "activity" aesthetic fatigue, "anniversary" is losing its original appeal.

Price war through the first increase and decline, the number of restrictions, quality and other means to make the platform value damage, to bring users a bad shopping experience, but also weaken the value of the platform itself.

Damage to their own (the Peace of Taiwanese households), and the unhealthy market competition, often will let the whole market into the quagmire.

4. Vertical electricity Dealer's price war dispute

In addition to the price war on the big platform, there are some vertical electric platform also in the price war playing jingle, but they and the previous mention of the big comprehensive platform is still somewhat different.

Let's talk about the difference between the price wars of these vertical electric platforms and the previous big-integrated platforms.

Common education market. Through the years of market cultivation, hatching a generation or several generations of online shopping, people began to form the habit of buying the network, but the habit of the beneficiaries are mostly still on the big platform, most people have not bought what kind of head and first think of which platform to the extent. So the vertical platform has an advantage over the big integrated platform is that, in their own business class, their own more professional, more single-minded, more authoritative. In the area of cosmetics, no matter how the two dozen, the more noisy the better, no losers, are winners, because the struggle between their influence spread, from the side told consumers, buy cosmetics, do not need to go to the big platform, this has a vertical platform. Even if you find an interesting phenomenon, there is an intersection between Le Bee and the investment side of Poly-Mei.

The goal is to kill each other. Compared to the big comprehensive platform is to rob the market share, vertical electric business to play a bit more ruthless. Because the same kind of purpose vertical electric business platform, if the product does not have great difference, that competitive relationship is until the life, or you die, or I live, because if the two have a listing, the other family can hardly see the hope of survival. But now the Le Bee and the United States have not reached that level, because the market is not hot enough, both sides have not put their opponents to the extent of death. This is a bit like the United front in the anti-Japanese period, when the time comes, we must score a win-win (do not change the operation of the category and seek differentiation under the premise).

The price war for vertical electric dealers is even more brutal. The first is because the platform is relatively much more, so there is no lack of fun, the blind yell of the Lord. And once the product price and quality problems, consumers send more negative information by the platform and the brand to share. But the vertical electricity quotient is different, in the consumer's eye, if I buy in you this, then you will carry all, whether is the reputation or the slander. Similar vertical electric business platform, their products have a high degree of overlap, and the sale of their own core products (because the class focus, so all products are core products), so that each product is directly related to the quality of the platform's reputation. So, do not take out a little dry goods, is not competitive.

Summary words

Platform price war's core question is whether the platform ignores its own core competitiveness, if you are lost, then you will be stuck in the mire of price war, difficult to extricate oneself.

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.