Jindong is a bizarre move.

At present, Jindong, Liu in gambling who's more thick, who will be able to first step to the opponent die, Unified lake

Liu to be hated.

Dangdang Guoqing said Liu "no strategic thinking", "no money"; Alibaba Jack Ma and Liu in the first camp, has been a confrontation; Gome because there is no leader, electric business strategy chaos, had to Alliance Dangdang, in any one of the Liu attack, the total will not have its figure.

Now, has been hiding behind the scenes of Suning Electric appliance chairman Jindong also jumped out. has been beats, bushel Jindong August launched "The history of the most brutal price war." To this end, he staked his own assets, no retreat.

Life

The electrical business industry has become more and more noisy, the cumulative systemic risk is more and more big, like beer cup bubble, see fast overflow cup mouth, a slightly tilted, full cup overflow. At this time, Jindong but uncharacteristically, with a radical posture in the electric business industry launch offensive.

August 2012, Jindong will own 400 million shares of Suning appliance stock pledged to Beijing International Trust, China Resources Trust and AVIC Trust, and as early as June, Jindong has pledged more than 600 million shares to the three trusts. Since then, Insunin Electric shares continued to fall nearly 30%, he was forced to add more than 400 million shares pledged. Jindong a total of 30.04% of total share capital after the expansion of Suning appliance, about 2.1 billion shares, and his two pledged shares accounted for about 50% of the number of shares held by the individual.

Jindong is raising money for the development of electricity dealers. From the 2012 Spring Festival to August, Suning easy to buy, Jingdong Mall, Cat, Gome Online Mall, Dangdang and so on has launched too many rounds of intensive price promotion war. Among them, only in summer home appliances promotion war, they jointly burned 5.8 billion yuan, this in the traditional retail industry is unthinkable.

Where you need to burn the money is more than a promotional fee. This newspaper has previously reported: Jindong proposed that by 2020, suning sales scale to reach 300 billion of the scale. To this end, he for Suning easy to purchase equipped with nearly 20,000 people's technical team, 4000 of people's logistics and distribution team, nearly thousands of people's sales staff, and put nearly billion in the national construction logistics distribution base.

Jindong need short-term funds to play a promotional battle, but also need long-term funds for infrastructure construction, the financial pressure can be imagined.

Solve the "left and right mutual stroke"

Jindong's bizarre behavior is more than that. August 7 Midnight, suning Tesco Market Management Center, Executive vice director Min on the micro-blog on the banner shout: "8.8 days in Beijing electric business industry will have great events!" ”

Min said the "big things" finally happened, this is another step under the Jindong cloth "risk chess": suning easy to buy and physical stores price leveling. August 8, Suning easy to buy executive Vice President Li Bin announced that Beijing Suning will start from mid-August starting line of the same price promotion, 3C products to line online at the same time competitive. The same price promotion will gradually to the whole country, other category promotion.

The move is seen as a jindong effort to solve the problem of mutual blogging. The problem is that the real store needs to bear the high cost of property rent, staff expenses, cost is higher than suning easy to buy. If the retail price of the store and suning easy to buy flat, the real store profits will undoubtedly be diluted, or even loss. Suning entity shop Gross profit margin close to 20%, and suning easy to buy 7% gross margin is in E18 price war (monthly 18th fixed promotional activities) under the "persecution" down to 4%.

The gross profit margin of the electric dealer cannot prop up the development of the Hypostatic shop, Jindong also not don't know. But if we do not take this step, we are also facing the dilemma of development. Jindong hope that the electricity and physical stores can coexist, but from the current development trend of Suning look, the future, or the electric business platform to drag down the entity shop, or the physical store to drag down the electric quotient, or the electricity quotient, the entity store both lost.

"The Battle of the two East"

Jindong began to be the first person to confront Liu, and the most recent confrontation was during the Olympics.

In order to complete the overall sales target, sniper Beijing East, Suning easy to buy during this period frequently: Seize the Zhejiang satellite TV "China good Voice", the large frequency launched the CCTV Olympic ads, micro-bo send Half-price coupons, launched the "Buy mobile phone Olympic special promotion."

Liu also not weakness. As early as last November, Jingdong Mall to 220 million yuan high price to win the CCTV Olympic Games broadcast two ads title. Jingdong Mall is launched a "win a few gold medals a day, Beijing and east will drop a few fold" of the Olympic marketing. Jingdong also sponsored the Su Ning's doorstep of Jiangsu satellite TV "not sincere don't disturb."

Su Ning Vice Chairman Weimin Public shelling: "With low price pull sales, attract investment, this is not marketing but MLM, MLM is the first, second and third batch of investors." "Suning official website Headline article said this open war is more outspoken:" Another layer of meaning is, the choice of the most concentrated in Beijing area, and to take the service and price of the dual competition mode, its purpose is self-evident. ”

Liu responded to weimin: "I am always attacking the opponent with low price and user experience!" Never attack anything else ... "and three laughs. Earlier, Liu in his microblog platform has been successfully "a reward for Samsung S3 PS", "tomato door" and other marketing activities, although he did not recognize this is marketing.

Jindong efforts may take a long time to be effective. In the short term, Jingdong Mall's advantages can not be exceeded. According to the enfodesk of the "2nd quarter of 2012, China's business market monitoring," the second quarter of 2012, Suning, although the increase of 1.05%, but still be squeezed out of the top three to 3.4% of the market share behind the Beijing-East 15.5%.

Jindong has a great "broken wrist" spirit. After the completion of the directional additional 4.7 billion yuan, Suning appliance August 13 Evening Notice said: to the public to issue a scale of not more than 8 billion yuan of corporate bonds.

The news makes Suning's employees feel unusually excited, and executive vice President Li Bin buys a Starbucks pick-me-up for every late-night employee.

Liu also can't sleep, he said: "Tonight, inexplicable excitement." The next day, he decided to deal with Jindong: "From today (August 14), Jingdong all the electricity guarantee than Gome, suning chain cheaper than at least 10%." "This message was sent to Liu's personal microblog after the East Beijing morning meeting.

At the same time, Liu Promise: "Jing dong Everybody Electricity three years 0 gross margin!" If within three years, any of the sales personnel in the electricity plus even a dollar margin, will be immediately dismissed! "and began in the country to recruit 5,000 U.S. and Soviet price intelligence, in-depth" enemy camp ", 2 per shop stationed.

On the surface, the electric business industry is developing unusually lively, but in fact, they are all in languish, Liu Day is also not good.

Lok Amoy Network CEO Bi Sheng in the "electric dealer is a scam" in the industry's shortcomings: the electricity industry is not a lucrative industry.

Liu himself admits this, after all, so far, Jingdong Mall's net profit is still negative, but he said: "When a company that does not make money is shameful, I also have a shameful feeling, can not create benefits for shareholders." But if a company is stupid to make money when it shouldn't be making money, I'd rather be ashamed than stupid. ”