Future electric business may form monopoly sellers

Recently by the online mall in Beijing East set off the price war, is to earn enough attention. From the August 14 night of war, escalation to speculation, and then to August 15 "Ober" to officially start, a variety of ups and downs of the plot comparable to Hollywood blockbusters.

Liu, associate professor, economic college, Southwest University of Finance and economics

Future electric business may form monopoly sellers

On the surface, the Beijing-East electric dealer price war, is an oligopoly competition "price Leadership Game (Price-leadershipgame)", that is, a big manufacturers first set prices, and other manufacturers to follow. If Jingdong first set a price, and Suning, Gome and other price followers only need to make a slightly lower than the BoE, in theory, can capture most of jingdong or even the entire market. In fact, on the night of August 14, Gome's stance is 5% lower than that of Jingdong, which is the strategy. In this case, the first card in the price game will be in a clear disadvantage.

As a power supplier, its cost depends mainly on its price and the cost of various kinds of labor, venues, logistics and other services. Obviously, for the higher-cost manufacturers, if the rivals with lower costs are priced lower than their own costs, they will lose money.

And even in terms of quantity game, the electric business war is a repetition rather than a one-off game process. Therefore, in the repeated encounters among the major electric dealers, it is very possible to form a tacit understanding. That is, although low prices attract the attention of consumers, but consumers can not buy goods, which will force the price slowly rebound. Once this tacit agreement between the electric dealers is formed, it is likely that the electricity quotient in the industry as a matter of fact will be merged into a monopoly seller, which may be the most unwilling to see by the consumers.

Senior political critic Ma Guangyuan:

Without the bottom line, competition could turn into a suicide attack.

As we all know, as a fully competitive industry, China's e-commerce is a rare industry to keep pace with the development of the global industry, and become one of the fastest-growing industries in China.

However, with the rapid development of the industry to form an awkward contrast, China's e-commerce on the one hand barbaric growth, on the one hand, the lack of differentiated, can become the core competitiveness of the business model, in the Customer experience, service quality, logistics and transportation and information technology, there is a lot of development space, in the absence of a real business model, The price war became the dominant killer of the electricity quotient between the competition share and the market position. But the price war, triggered by a lack of business models, is clearly a crisis, not a war of development. The price war, in addition to bringing a string of flourishing and illusory figures and consumers ' constantly stimulated hormones and appetites, does not bring about a sustainable and healthy industry.

In the face of China's e-commerce industry huge cake, facing the future of China's huge consumer market, I think, China's electricity business is not too much, but too little. The market in Beijing East do not finish, Su Ning, Gome also do not finish.

For Jingdong and Suning, it is better to study their profit model and cultivate the real core competitiveness than to engage in the vicious price dispute of destroying the ecology of the industry. The market space of electronic commerce is big, not one can monopolize. For any industry, a price war may be a nirvana to go through, but if there is a price war or a price war, or even a price war without any bottom line, competition will sour into slaughter and suicide attacks. Consumers enjoy the short-lived low-priced goods, will soon find that the legacy of vicious price war is not only the bones of the defeated, but also the e-commerce industry is difficult to restore the messy ruins.

Well-known E-commerce observer Ruzenwang: Liu no other option

Since April this year, Suning easy to buy, Xun net, the United States and its Bowser network has been constantly targeted at the Beijing-East price war, leading to the Beijing-East 3C household appliances share is declining. In particular, Suning recently launched the line with the same price, the goal is directed to the Beijing-East core category 3C digital. The original advantage of Jingdong began to be hit.

The postponement of the IPO of the BoE must be the next round of financing, and the huge loss of the Beijing East can only rely on the growing scale to obtain financing weights, once the scale of growth slowed down or slipped, then financing difficulty will increase, which makes the east to the price war against price, continue to impact scale.

"Snake hit seven inches". The reason for the Beijing east to choose the counter point in Suning, Gome store pillar sales accounted for more than more than 50% of the large household appliances, is intended to speed up the purchase of large household electrical appliances in the choice of electric business channels, and further increase the crisis of suning and Gome stores, after all, in the economic downturn and the impact of E-commerce, home appliance store business is in trouble. Suning has already been through the issue of more than 5 billion yuan, and now to send 8 billion yuan corporate debt, the purpose is to strengthen the store and e-commerce business. If Suning financing success, for Beijing east is tantamount to extinction, Liu also want to prevent suning further financing through price war.

For Jingdong, 3C gross margin is too low, belong to brand price category; Only home appliances and pop open platform is the future of the profit hope, home appliances belong to the channel control of goods, are through the expansion of the scale to obtain a different rebate, the larger the rebate, this is the foundation of Su Ning, Gome success, now Jingdong home appliance bargaining right still and Su Ning, Gome is too far away, Jingdong also dream of one day online subversion suning , Gome, in the bargain and rebate on an equal footing, so as to achieve profitability.

Liu fully aware of the above problems, he has no other options, only price war, price war ...