No expectations of a large area of price reduction, there is no expectation of a substantial reduction

After the Chinese electric business giant two days of "price war" baptism, many consumers feel, "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.

Once in the film blockbuster can be staged in the commercial war, this happened in Beijing East, Suning, Gome three home appliances business giants. However, the business performance proved that the so-called "price war" is only a successful low-cost marketing activities.

A body of monitoring data shows that the 14th night after the start of the electric business nearly 50 pieces of large household appliances quietly rising prices, from 30% to 100%, and its more than 2000 large household electrical appliances only 70 pieces of goods prices, accounting for the overall large proportion of household electrical appliances is very low.

Many consumers told reporters that they did not get benefits from the so-called "0 margin" sales. Beijing White Collar Li Qiang said he had a fancy for a Samsung brand LCD TV, was already ready to buy the shot, but after a day of observation found that not only the price has not changed, and then the site simply can not find this product. Many consumers reflect that the three electrical appliances are not many overlapping goods, only a small amount can be compared to the price, and a lot of goods without goods.

Beijing Electronic Commerce Association Secretary-General Linya that the vast majority of the sales promotion of goods do not have a larger range of concessions, the price war or to attract attention, consumers the more attention, the more noisy outside, the more happy the electricity business. There are insiders said that the electricity dealers use the public figure cheap, watching the lively psychology, can be said to be a clever marketing tool. A poll showed that as of 17th, the three home appliances business price war IS propaganda stunt, accounted for nearly 53%.

"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. 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 industry sources, the current dilemma in the face of the Beijing East is the pursuit of profit or scale, Jingdong chose the latter, and for the set sales performance to do their best.

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.

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. ”

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.