Online Technology v Forum: Small and medium electric dealers should stay away from price war

This issue focuses on "How electric marketers go beyond price wars"

Tencent Science and technology news in the first half of this year Jingdong Mall, Suning easy to buy and cat big hit the price war, to fight market share, to the electricity market brings great impact. June 6, Hing Long letter Tatsu Chairman Lei, West Street Network CEO Guo Hongjing (Micro bo) and Chinese manufacturer President Bkai (Micro Bo) in Tencent Weibo online technology v Forum Electric Business Special session in this heated discussion. The guests agreed that in the large platform to rely on price war to clean up the market, small and medium-sized electric operators should focus on value cultivation, strengthen after-sales service, improve quality, out of their own way.

Tencent Science and technology in June opened a full range of micro-blog Online Technology v Forum, each issue invited three industry bosses, on the Internet lakes. Will cover, E-commerce, mobile internet and other hot areas, focus on the latest hot spots in mobile power, mobile developers, social networking and venture capital, focusing on how the electric business marketing goes beyond the price war, focusing on how small and medium-sized, vertical electric operators can find their way out of the big platform price war.

Guo Hongjing pointed out that only in the same quality of goods to do price competition, can only be used as a short-term promotional means, long-term operation, the injured is their own.

"Enterprises should deal with the market price war, need the Prophet and then Jubing, risk is big, choose the opponent is the same." Lei said, "Jingdong, Cat, Suning easy to buy billion, for many small and medium electric business is unable to follow." He suggested that the CLP should choose the same two or three-line electric dealer, adopt the non price competition means, strengthen the quality, service, brand and other factors, and dilute the price factor.

Bkai also gave a "listing free war, hard skills" reminder.

The following is an interactive transcript:

Fung: #电商之道 # price war can not sacrifice the interests of businessmen, and can not damage consumer rights! The benign development of electric power business is inseparable from the participation of businessmen, and in the industry, there is no minimum price, only lower, the value of the commodity is the bottom line, leaving the basic price, can not guarantee the platform, business, consumers three interests, price war is the lowest and most effective means of marketing. How do the price wars hurt the enthusiasm of the businessmen?

Bkai: The price war itself will not hurt the enthusiasm of the business. Businesses are most worried about product pricing rights, when a single product sales channels, including the power channel is strong enough, will produce such problems.

Shangxiang: #电商之道 # Support, how do you see the major electric dealers (Jing Dong, suning easy to buy, the price of the cat war)?

Bkai: To say simple: Jingdong is for the IPO, the cat is for the boss, Suning is for the future

Guo Hongjing: The big platform is building a new pattern. The sky cat hopes to Impact Jing East in the 3C above advantage, Jing Dong in the clothing above exerting force. Due to the high sensitivity of 3C home appliances, this part of the most action.

Lei: The biggest cause of price war in the market economy is under the pressure of strong competitors, the market share of enterprises fell, when the Beijing-east face strong opponents of the cat and the rising star Suning easy to buy, price war is also inevitable, of course, the cat, Su Ning is also so.

Fung: #电商之道 # price war can not sacrifice the interests of businessmen, and can not damage consumer rights! The benign development of electric power business is inseparable from the participation of businessmen, and in the industry, there is no minimum price, only lower, the value of the commodity is the bottom line, leaving the basic price, can not guarantee the platform, business, consumers three interests, price war is the lowest and most effective means of marketing. How do the price wars hurt the enthusiasm of the businessmen?

Lei: In fact, the price war is a market economy must pass the stage, but for the merchant, nothing but the sacrifice of profits to seize the market, is the local price war or full price war depends on product bargaining power.

Guo Hongjing: This year, vertical b-c are less involved in price wars. Controlling costs and boosting profits will be the main targets of the future.

Wang Junjun: #电商之道 # We all know that users are not really low price, just let users feel cheap, so now the so-called electric sales promotion, is not really low price? Or does it just make the user feel cheap? is not the electricity quotient collective to give the user a concept: NET buys is cheaper than offline?

Lei: Consumers ' value for products include tangible value (product function, price) and intangible value (such as service), enterprises need to maintain the balance between the physical and the intangible, but in fact the enterprise is difficult to balance, the pursuit of price concessions to consumers, but neglected the value of non-price factors.

Hang the world: #电商之道 # I think many enterprises may not themselves and do not want to take the initiative to play price war, but the opponents are in the low-cost sales how to do? You hit me too, everyone is playing, forming a vicious circle. How to get out of this vicious circle?

Lei: Vicious price war will inevitably have an impact on enterprises and the industry as a whole, how to get out of the vicious circle, the government and enterprises need to work together, the Government to adjust, enterprise rational view, value War to replace the price war, strengthen the value of product services, it is the best policy.

Guo Hongjing: Will gradually return to rationality. Businesses need to find their own value. Companies that cannot provide value are out. The big platform is from the strategic consideration behavior, the small and medium-sized enterprise is more important is develops own value, is not easy to follow.

Kang Min: #电商之道 # If you buy from overseas, how do you see the inventory problem? Enter more afraid to sell, forming a constant backlog. Getting in less will waste a lot of costs and cause many troublesome procedures. Consumers to order after the shipment from abroad is the best way, but the domestic electricity business is speed, consumers must not afford 10 days and a half month ...

Lei: Overseas channel is good, but time and user experience cost too much

Guo Hongjing: Purchasing is a unique market, there is space, there are bottlenecks. See Warehouse Center in domestic bonded area, need to make very good plan to sales forecast and supply ability.

Zhang Qiang: #电商之道 #3c Appliance price war from supply upstream to see the tradition of price warfare, only now replaced by electric business platform, their respective alliances, the ring, you hit me a fist, I hit you a fist, but the problem is who can not really kill who, from this logical point of view, the real role of price war is nothing more than the elimination of two or three-level minions, Giants, this is Chan.

Guo Hongjing: Companies with real supply advantages and service advantages will exist for a long time

Lio Ronghong: #电商之道 # Today's electric dealers are basically run by capital, do not burn money, how can emit a more shining light, so that more users know. Just by innovation in China this monopoly of the Internet market is not workable, perhaps out of a two months is a cottage!

Lei: Under the capital Drive, the electric business can be concerned quickly by the user, but whether can be really accepted by the user, need value to drive

Zhou Ping: #电商之道 # The so-called "war", there are opponents, how to choose the price war opponents, veterans have what experience? Can not all go with Taobao search sort of price war?

Guo Hongjing: In the market segment, we need more specialized commodity operation ability. To provide more market-close differentiated products. Agree to do sports goods of the electricity quotient, the difference of goods is also huge, the efficiency of replenishment is also different. More understanding of the market, more rapid response, will have more value. Only in the same quality of goods to do price competition, only as a short-term promotional means, long-term operation, the injured is their own.

Lei: Enterprises should deal with the market price war, need the Prophet and then Jubing, risk is large, the choice of opponents is the same, Jingdong, the cat, Suning easy to buy billion, for many small and medium-sized electrical business is unable to follow, it is recommended to choose the same two or three-line electric business, the use of non-price competition means, strengthen quality, service, brand and other factors, To downplay the price factor

Bkai: 1, the choice of their own acceptable price is the only reference; 2, or listing free war, hard skills

Guo Hongjing: For small and medium electric business, hanging Shine may be a good choice. The low price obtains the user, can accumulate not many.

Wu Shing: #电商之道 # Innovation is not necessarily in terms of technology, services, CRM, logistics and distribution. It's normal for technology to be plagiarized, but what about these? will also easily be copied by the cottage? Blindly price war, advertising hit! Out of the consumer's heart of recognition?

Lei: Enterprises blindly price war led to a vicious circle of long-term development of enterprises, advertising hit, low price attraction is the most direct and fastest way to attract eyeballs, but can not be overlooked is that the relationship between price and value can not be balanced, and then low prices are difficult to endure.

Digital Wok: #电商之道 # Hello Liu. Can I ask Lotte cool lack of Chinese genes to say more specifically? How can Baidu lack Chinese genes?

Lei: The lack of Chinese genes in Le cool days The executives were all held by the Japanese side, so the high level decision making mistakes were unavoidable.

Peng Hongwei: #电商之道 # Electric Business is a huge group, the price war is unavoidable, like the traditional stores, there is no shortage of price war, as the electric business practitioners, we have to consider how to survive in the price war, rather than to avoid.

Lei: Price war is the inevitable product of market economy, enterprises can not avoid, suggested a number of ways to deal with: 1, the price unchanged, strengthen the non-price competition, such as strengthening after-sales service, improve quality, 2, part or completely follow the competitor's price changes, the adoption of a sound strategy, 3, adhere to the brand positioning, grasping the profit center of gravity

Wang: #电商之道 # Now there are a lot of sellers in 1 yuan seconds to kill, and my shop is not to do this

Guo Hongjing: As Taobao shop, the use of blasting money, through the associated sales of the way to obtain profits is a way. Second kill is one way is not the best way.

Give up between: #电商之道 # Now a few big platforms are playing a price war madly, small and medium electric business has no capital and no need to follow up. For most of the small and medium-sized electric operators, what should they do first in their market?

Guo Hongjing: The professional ability within the category.

Lei: You can choose the value-added strategy, do not directly reduce prices, by adding services or gifts and other means, so that customers get more benefits. and to strengthen the value of non-price, to dilute the price factor.

Li Wei: #电商之道 # Before the beginning of the electric business, either first spell the price, after the spell service, or first spell business, after the spell electronics. Is there any other way to survive, besides?

Guo Hongjing: Supply chain ability, service ability and professional operation ability. If all this is done, it is not profitable, indicating that the market has gone wrong. I believe that a business that has been losing money is unsustainable.

Liu: #电商之道 # Speaking of this reasonable space. I'm afraid this is too bad to be sure of.

Bkai: Not losing money is a reasonable yardstick

Lei: keeping balance

Yupeng: Day cat, Suning easy to buy, Jingdong, when, Amazon, and several major electric dealers claimed to invest heavily in price war, and then, new eggs also carry and 300 million promotional resources to join the battle. No accident Tencent heavily involved in the Xun will also be strong to participate in the Occupy, Sina home will invest 250 million resources to push the "big cheap" project, electricity dealers price war. Can the electricity dealers attract users only by constantly lowering prices? Everybody Talk!

Lei: Dare to invest heavily in price war, most of the capital-driven dealers, for the small and medium-sized electric power without the advantage of capital, can not stop the price to attract users, proposed vertical and horizontal joint, and its products do not directly reduce prices, and by adding services or gifts and other ways, so that customers get more benefits.

Zo: #电商之道 # Why does the current electrical business not form value-added services so that people are willing not to pay for a bargain?

Guo Hongjing: From the man I have, to people have my cheap, the future to the people of my professional.

Lei: The existing market culture in China determines the low value of value-added services for enterprises

Chen Shufu: #电商之道 # I'm sure the enterprise itself will not be willing to play price war, is the transparency of the electricity business must have the same advantage, the most easily let consumers find the advantage is the price. Obviously the price war is long-term, then the price war behind the enterprises have profits to support the development of enterprises?

Guo Hongjing: In the establishment of their own market position, access to users, impact opponents, the price war is needed. If the long-term low price, cannot obtain the profit, cannot insist.

Yuelingxiao: #电商之道 # The price war is almost equal to perish together, excuse me, Liu. How to see the issue of price war? What is the quality, or competitiveness, that the Chinese electric dealers need to rush out of the price war?

Lei: Price war is unavoidable, there will be a market exists price war, the electric trader out of price war, one is the enterprise needs rational cognition, the prophet and then Jubing; Secondly, we should actively deal with, stick to brand positioning, grasp the center of profit, third, strengthen the value-driven, dilute the price barrier

Digital wok: #电商之道 # bu always hello. Why do you say homogenization of products is not the cause of price war? Apple mobile phone price is a few times the cottage machine, those who buy Apple machine why not buy cheap?

Bkai: Homogenization of products is only the inducement of price war. Can not and user real demand fast docking is the root cause of price war.

Wanglianseng: #电商之道 # The price war can make customers remember? A price war can only make the time to come faster when there is no money.

Lei: Price war and popularity, but must consume internal resources

Liu Jihu: #电商之道 # Today's price war is a conspiracy and an attempt. We all clearly see the future of the electric business, who can become tomorrow's China's electric business, the way, only price war.

Lei: Price war to value war excessive

Bkai: Don't compare to the big platform! Keeping the electricity trader's light assets alive can take longer and better, and if you don't earn money for a long time, you may have a wrong product line or strategy.