Line price war to burn online home appliances dealers hard to break low price dilemma

Source: Internet
Author: User
Keywords Online sleepy
Tags .mall .net bowser network business channel consumers cost electric business
"We are negotiating with the big chain, hope that under the network and online separate procurement, because the net sales cost is three or four times times on the Internet, separate procurement can guarantee the profit of our online sales."  "A well-known household electrical appliances enterprises in charge of the sales business of the top 11th to the" First financial daily reporter revealed. As a new channel, the Electric appliance retail market is growing rapidly.  Gome, suning Two giants have been galloping this year. But the price war is also burning from line to line.  This has led to the loss of electrical appliance manufacturers, disrupting factory price system, the impact of physical stores, such as unbearable pain. Brutal growth of the pain Jingdong Mall is to stimulate the traditional home appliances retailers to join the Battle of the benchmark.  The company was founded in 7 years, the annual growth of 200%, 2010 revenue reached 10.2 billion yuan, 2011 is expected to reach 30 billion yuan. Gome will 2011 as the year of electric business development. After last year's acquisition of Bowser, this year again pushed Gome Electric Online mall.  Bowser Network vice President Pengliang told this newspaper, this 1 ~ May Bowser has reached last year nearly 500 million yuan sales, the first half of this year's sales of 785 million yuan, this year estimated to do 2 billion yuan, is four times times last year. Su Ning High-profile claims that 2020 online sales to do 300 billion yuan, including home appliances to achieve 100 billion yuan.  Suning easy to buy general manager Li bin said to this newspaper, last year, the sales of 2 billion yuan, the first half of this year to achieve 2.56 billion yuan, three quarter estimated 1.6 billion yuan, together 4.2 billion yuan, this year sales of about 7 billion ~80 billion, grew nearly 400%. Home appliance brand Manufacturers lonely. U.S. daily electrical Appliances Group China Marketing Headquarters PR Minister Zhu Yuanlai revealed that the first half of the United States, small household electrical appliances online sales of 500 million yuan, is expected to reach 1.1 billion yuan a year, about the United States accounted for the total annual sales of small household electrical appliances 3%, growth is very fast, although the amount is not large. Skyworth China marketing general manager Liu Yan said that 2010 online sales accounted for Skyworth TV domestic sales 2%~3%, this year has accounted for 5%~10%, the proportion will increase next year.  At the beginning of the year Skyworth has set up a special electric business department. "But we hope that low prices do not become the only core competitiveness of online sales."  Liu Yan Branch Frankly, the biggest challenge is how to ping (blog) value system. Low price is still the main competitive means of electronic commerce at present. Pengliang Blunt, low price must be the core competitiveness of the enterprise, the current netizen has been educated in the online not low-cost, electric dealers are still in the initial stage of competition for consumers, must now be low-priced.  He said that, because relying on the Gome procurement system, Bowser network of low prices have emboldened. But the top of a well-known household appliances business executives a little worried.  Because, manufacturers to shop back to the general sales of 3%~5%, to a large chain back point is more than 10%, online sales cost lower than offline, if the big chain will be offline products online low-priced sell, "will be very painful." Su Ning easy to buy general manager Li Bin's tone is somewhat helpless: "Now E-commerce put too much resources in the price war." Price is the main, but not the only demand of consumers, if blindly low pricewill only sacrifice experience and service. Short-term competition can be low-cost, but long-term not likely to bring a benign situation. Li said that low prices are the only means of competition now, so the electricity dealers are losing money. And why?  Under the line, such as Suning appliance stores are their own investment, to have a profit target, while many online dealers take the money of investors, "do not lose the next round of financing." Online and offline contradictions under the network and offline procurement how to separate? Gome and Suning said "impossible".  Pengliang bluntly, if so, the procurement advantage will not exist. "Even if the manufacturers do not want to, Bowser net can be directly to gome procurement, manufacturers will not break Gome's goods."  "he said. Suning Electric Appliance Vice Chairman Weimin to this newspaper, the online cost may not be lower than the offline cost, otherwise why the Internet over tens of millions of sales are not profitable?  Secondly, the level of channel costs is not the decision to determine the price of supply. Close a door, Weimin pointed out another way: in the long run, the line price should be relatively unified. If the same commodity line under different prices, consumers will be puzzled, suppliers difficult to balance the price system.  It just might take a year, two years, or three years. In fact, in addition to low prices, electrical appliance manufacturers are striving to build service competitiveness, logistics is the "arms race" one of the focus.  Jingdong Mall Plans The next three years to invest 5 billion ~60 billion for logistics construction, is expected to eventually need 15 billion ~200 billion of funds, with five years of time to all the logistics system construction completed. In response to this newspaper, Jingdong Mall said, has five major logistics centers, the current 72% orders to achieve independent distribution, the end of this year will achieve 150 cities to distribute themselves, next year the initial planning is 350 cities. "Our goal in three years to achieve 500 to 800 cities to distribute themselves, at that time our logistics coverage capacity has exceeded our order number of 95%." "While using Gome's existing logistics system, Bowser is also building warehouses and has its own warehouses in 17 provinces to cover 23 provinces to improve responsiveness."  Pengliang said that the Bowser network staff has increased to 1500 people. Suning Tesco relies on Suning appliances nationwide 60 Logistics Base, and since built 10 for department stores, books, automated small logistics system.  Bin Li says it will reach 1000 this year and will reach 20000 by 2017. "The first stage relies on the low price, the second stage relies on the service, the third stage relies on the differentiated product." "Pengliang believes that the online sales of customized products is a trend, the proportion will continue to improve, but do not sell the line of hot products is not possible." "The real value of E-commerce is the analysis of customer data like Amazon, providing targeted products and services, rather than simply moving offline products to online sales."  "Li bin also said that, in the long run, the line under the price convergence, but the product line will be different, only in this way, online channels will not exist conflict, but complementary, mutual assistance. From the low price of blood, to the trend of service differentiation, productDifference, the electrical appliance dealers this road will be very long, but definitely the direction.
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.