"No bottom line price reduction" behind the business is a low cost marketing strategy

There is no expectation of a large area of price reduction, there is no expectation of a substantial price reduction. After the two-day "price war", many consumers feel that "no bottom line price" Behind the business is a low-cost marketing strategy. In this "Low-cost business War", earning enough attention to the merchants to become the biggest beneficiaries.

"Price war" is a hidden mystery.

"The price war" has attracted huge social attention, regardless of the point of view, it has reached its goal, said Ranking, the joint president and chief operating officer of Iris Consulting. "Price war" belongs to "frame" rather than "pinch", which means that both sides have sufficient preparation. No matter who is dominant or inferior in the competition, the effect of "advertise" has already appeared, the public is doing the propaganda for the merchants free of charge, and the effect of the merchant to this kind of "overwhelming" may also have early forecast.

At the same time, the point of "price war" is also hidden. "The price war" the time point is just after the Olympic Games, social concerns temporarily in a blank period, at this time "war" attracted enough attention. Ranking said, on the other hand, the "price war" at this time also with several parties to expand market share, attract capital attention to coincide with the demand.

According to the Xinhua news, the industry revealed that the current dilemma before the Beijing east is the pursuit of profit or scale, Jingdong chose the latter, and for the set sales performance to make efforts.

Ranking analysis said that for the future of the Beijing-east listing, the capital market in accordance with traditional retailers on its valuation, more chasing the size of sales, rather than the usual internet companies "do not look at the concept of income" approach to valuation, which requires the continued expansion of the Beijing-East sales scale. At the same time, another war business, Su Ning also has such a demand, its only this year formal, high-profile, large-scale access to the online retail market, and in the previous numerous conferences. Su Ning is hoping to quickly establish the role of important market participants in netizens.

The promotion of the "price war" for the entire sale is obvious. Jingdong Mall announced that as of 15th noon, Jingdong Mall large household appliances sales exceeded 200 million yuan. Suning easy to purchase announced, as of 15th 6 o'clock in the evening, Suning easy to buy site visitors to increase by nearly 10 times times the same period last year, and the overall sales scale also grew 10 times times year-on-year.

The capital game behind the commercial war

Internet expert Xingdong said that the price war is not so much a contest between price and profit as the Internet model and the traditional mode of "decisive battle", and the driving force of the two modes of "decisive battle" is capital. Zhou, an analyst at China's E-commerce Research Center, said that after several rounds of financing, the current market valuation of the Jingdong IPO is already very large. Jingdong's current goal is to go public, or it may be hard to find a follow-on investor. At this time Jingdong mall if can take Su ning to go down, will be advantageous to the listing. ”

Japan Securities Research newspaper showed that suning online business after a quarter of the adjustment, began to continue in April, the new page revision, flagship store online, continuous price war series of actions show its determination. It is obvious that, whether it is listed financing or day-to-day operation, Suning easy to buy is a big opponent in front of the Beijing East. "China's e-commerce sector will be born hundreds of billions of dollars in the leadership of enterprises, this seat is currently empty seats." Liu want to sit, Gome, suning not easily agreed. The price war is a decisive battle for the future fate of both sides. "Xingdong said.

In fact, in order to succeed in the field of electrical business, several parties have invested a lot of real money. Securities Research Report, the Jingdong Mall in August 2007, January 2009 and April 2011 carried out 3 rounds of financing, the original capital of about 9.6 billion yuan. There is such a scale of capital support, Jingdong Mall since its inception in the Logistics Center, Office and other fixed assets investment has invested hundreds of billions of dollars. However, if it is not profitable, the huge financial backing also has a day to run out. Since the establishment of the Logistics center and the purchase of Super Flagship store properties, Suning appliances (002024, shares bar) of the financial situation is also relatively tense. In July this year, Suning appliances targeted additional financing of 4.7 billion yuan, August announced the issuance of 8 billion yuan corporate debt financing plan.

Industry insiders pointed out that the current Beijing-east, Suning competition has entered a delicate stage. "Price war" way to achieve the effect of attracting eyeballs, but also to test each other's actual situation. "Of course, I do not rule out the idea that Jingdong will take advantage of this opportunity." "said the person.