Hing Long Letter Tatsu Lei: Electric dealers "price war" to break through the hidden crisis

Recently, the cat 200 million yuan to challenge the "price war" Jing Dong 500 Million comeback: "The three giants" each other to blow up the electric business history of the largest price war horn. Jingdong Mall said that in 5 June, will take out 500 million yuan on home appliances products to promote, to pull large household appliances sales. This is widely seen in the industry as Jingdong Mall on the previous suning Tesco, Amazon China and the cat to provoke a 3C price war response. Jingdong Mall also revealed that, in addition to carrying out promotional activities, it will also be in logistics, after-sales service to increase investment in order to further improve the enterprise's industry, supply chain. Li Bin, an executive vice president of Suning, said that since the first wave of price warfare in April had been effective and that the peers had generally taken a negative response, Suning had set a new target and would have planned to take the first market share of the grid in August, ahead of June.

The new Egg net is also wary of a "price war". COO Chi Yongxin has told the media that the new egg network has been emphasizing "healthy profit", he also said that "some of the pursuit of sales of the Business Mall" development model is not healthy, "excessive pursuit of sales of enterprises will not be long, sooner or later will disappear." Zhou Zhaowu, president of the New Egg Mall, who has just taken office, has also joined the fray in unprecedented proportions. New Egg net related head said yesterday: "The new egg group will increase the resources investment in China." and early participation in the price war is the most direct capture of the market share of the powerful means. ”

, the leading domestic supplier of electrical outsourcing service Hing Long letter Tatsu CEO Lei said that E-commerce is the essence of retail, retail is the essence of "profit" as the core. Price war is always just one of the sales promotion means but not absolute means. "Price war" can achieve electricity quotient, the formation of a new "enclosure" situation, but there will be a large amount of capital risk, the formation of a virtuous circle. If the "price war" as the main means of promotion, will let the electricity business into a crisis. Lei said that the current electricity market structure is not clear, the electrical quotient of the audience groups in the incubation period. In addition to the electricity business than the line under the channel manufacturers the biggest advantage is the price, the price war will eventually eliminate two or three agent, will attract the traditional channel agent system of real change, but the price of the electricity business will continue for a long time.

also some electrical business people think that this is an industry should not miss the "encirclement and suppression of the Beijing-east" behavior, in Beijing and east frequently out of the capital chain problems, other electric rivals, of course, will not pass the "price war" as the best chance to win a victory over Jingdong.

in some industry, "the eve of the market was the night of the competition is inevitable, this is also positioned as the ' electric business empire ' Jingdong Mall, in the process of development." Other opponents, of course, will not pass the siege of the Beijing-East timing.

But then Beijing and east also not to show weakness will be issued the "strongest" market shows, Jingdong Mall said later, in May or June, will take out 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, the blood price unstoppable. No matter winner, this war is difficult to conceal the sad color. Internet personage Guo Yang thinks, for each price war electricity business enterprise, the commodity subsidy cost is also in second, the logistics, the distribution, after sale are the big head which burns the money, if only the head regardless of tail will affect the enterprise future prestige and the brand.

There are many industry concern that the price of the melee is not the slightest new ideas, electric business enterprises to crack down the way the operation is still cut meat, is an enclosure of electric dealers. Whether the low price promotion of the electric business giant is "give oneself a breath", pleasing the consumer at the same time, hurt the agent and the normal business model. "Level two or three agents living space is backlog, can not meet low-cost supply of the kicked out." In addition to the consumer benefits, the current electric dealer price war can be said to be harmful, low price promotion is a normal business model. ”