No longer blowout price war, refraction manufacturers difficult choice

Source: Internet
Author: User
Keywords Electricity quotient price war consumer
Tags .mall business business is cat close consumer consumers cost

After the crazy three days passed, each big electric dealer sends to victory. But unlike last year, the flow blowout scene did not appear. The electric business platform lost money to make a lot of yelling and suspicious.

In the past two years, the electrical business from the vertical to the platform, a number of the once distinctive personality of the electric dealer now looks as if from a mold to walk out, such homogeneity let the electricity business platform had to choose price war to carry out close hand-to-hand combat. It is destined to be a dangerous gamble that will not come down on the table. Before the hands of the game, these electric business giants have their own strengths, Jingdong is eager to logistics as the core competitiveness, the cat is hoping to build a sound through the electronic business and financial means of the electric business empire, but today, they can only continue in the price of this low-end battlefield struggling fight.

Price war, who did it?

No longer blowout price war

Beijing East three days of Daqing just finished, the battle platform is still unpredictable. According to the latest Beijing-East disclosure data, as of June 17 midday sales data, computer digital products sales sharply heating up. Notebook Sales breakthrough 20,000 units, digital camera breakthrough 10,000, Apple Interface Speaker 1-hour sales breakthrough 10,000 units. The average peak period sold more than 2 handsets per second, expected to sell more than 100,000 units a day, doubling year-on-year.

In addition, Suning Tesco executive vice president also issued micro-Bo said that as of 5 o'clock in the afternoon orders total increase last year 350%.

Compared with previous years ' price war, the promotional activities of the various companies appear to be more orderly, the situation of Sando Mamang almost did not appear, this is because most of the use of segmented promotional means, as far as possible not to let hot goods directly meet.

The not-so-popular scene also allows the eager merchant not to get the expected high flow. There is a third party platform statistics show that as of 18th 3 o'clock in the afternoon, Jingdong, Suning, Xun, Amazon, when the various war electric traffic changes (relative to the 17th 3 o'clock in the afternoon traffic changes) were 36%, 49%, 61%, 20%, 12%. These data are relatively flat and do not occur in the same blowout phenomenon as in previous years. With the June 18, 2012 traffic in the mall compared to 17th, Beijing East, suning traffic growth has reached 114%, 175% respectively.

These seemingly not so beautiful figures still exist behind some fishy, according to the author understand that some of the sales figures are actually orders rather than the final volume, and some returns are not counted.

The Hard Choices of manufacturers

What is more frightening is that the manufacturers are making tough choices behind the platform of the electricity business.

In the price war, the initiator appears to be Jingdong, suning, or even the cat, but the real fighters are often the platform behind the manufacturers, these platforms are only provide a platform for price warfare. The final cost of the price war will be grafted on the merchant's head.

At present, several electric dealers are in the market share to win the key period of listing, to profit for the scale is understandable, but the other enterprises that are being coerced how to survive?

At present the domestic net buys the scale already surpasses trillion, this huge market is behind the netizen to the electricity merchant's dependence. Manufacturers are in a dilemma, on the one hand to participate in the big promotion activities in order to quickly strengthen the brand influence, on the other hand, the dwindling profit is a headache.

The dilemma forced Haier last year, hurting Asustek this year.

A well-known domestic book company in charge of the author said: "Businesses no matter which platform must make money, do not earn money business not called business." Consumers in the future also need rational judgment, if buy a lot of useless things, it is irrational consumption. ”

In the most fiery year group buying industry, the CEO of a number of group buying site has said to the author that the basic purpose of the purchase platform to attract high-quality resources is to build capital barriers, some poor strength of the small platform to drive out the market, which is conducive to the future development of enterprises. So much for the price wars of electricity dealers.

Before the end of this paragraph, I would like to share a story with the reader: In a city, there is a small shop selling dumplings, the cost of eight cents, the price of a piece, because it is a monopoly, although the profit is meager, but earn a little. Later, the city came to a new selling dumplings, the cost is eight cents, but the price is eight cents. The quality of the case, consumers natural selection cheap home. In a few days, the original buns shop closed. Now the city is only a stuffed bun shop, now the bun shop sold two kinds of steamed buns, one is the original cost of eight cents, but the price into two, the other one price or eight cents, but the cost reduced to two cents.

This is not different from the current game of the electric dealer.

Overdrawn Consumers

In addition to manufacturers, consumers are gradually away from the electric business platform.

Electric business platform is going to group buying site once a vicious circle, more money and energy was put into marketing, the price war eventually into a marketing war. First rise, then drop, limited supply and other means not only overdraft consumer purchasing power, but also in the overdraft consumer's patience.

In this history, the number of war platforms, the biggest fight, the most intense electric business war since the beginning of June, these days to climax, but whether from social media or the response of ordinary consumers can be seen, consumers have aesthetic fatigue, the past "carnival-style" shopping in the future will be difficult to appear. The frequent creation of electricity dealers and price wars, has made consumers have a very serious "aesthetic fatigue", coupled with many consumers in the past, regardless of the sales of the sale of the big storm, these old routines can no longer arouse their enthusiasm. Perhaps last year's "Double 11" will become the swan song of the Electric Business carnival.

In foreign large supermarket chains, department stores to enter the domestic market they also adopted a price war, but with the gradual stability of market share, price war into multiple waves, small-scale promotional.

You know, consumers ultimately want to get quality products and services, not just the price, more likely to be a water price war.

The future of price warfare

In the upstream and downstream of the price war on the electricity business is showing weakness, how long can the price war continue?

E-commerce is expected to be a lethal weapon capable of changing the social retailing pattern in the future; but if the electrical business of the so-called subversion of traditional retail innovation, and ultimately only through a price war to reflect, that with physical retailing in the marketing method of more than 10 years, such as the promotion of a day, what are the essential differences? If the electric business is too dependent on the price war, it cannot escape the fate of being eliminated.

The reason why e-commerce can impact on traditional retailing industry not just because of its price advantage, multiple types of goods, convenient access to the channel, and even good consumer experience, these should have been the electric business platform to strive to develop the direction of constant, brutal price war to marketing sooner or later will be tired of consumers, The harm of consumers ' aesthetic fatigue caused by the single marketing method and promotional means is also very great.

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.