Price war moves towards value war

Securities Times reporter Zheng

The influence of the electric dealer price war on the overall pattern of the industry is appearing. According to the monitoring data disclosed by the China Electronic Commerce Research Center yesterday, as of June 2012, domestic consumer (merchant to user), Consumer-to-consumer (user to user) and other electric business model enterprises have reached 24,600, year-on-year growth of 20.1%, compared with the same period last year, the growth rate of 64% significantly decline, It is expected that the end of this year's electricity business Tatsu 24900, the first half of the chain growth of 1.22%.

China's E-commerce Research Center predicts that, along with the massive price war, the number of electric business enterprises has declined, a considerable number of enterprises will fall in the process, the second half of 2012 is expected to increase the price war, the fittest will continue.

Price war moves towards value war

Since the beginning of 2012, the network retail market ushered in the history of the largest price war, the electricity dealers to spend the sound of fighting. But this strategy is not a long-term solution, with the maturity of the online shopping model, the electric war field will certainly turn to enhance the user experience.

First half, new eggs and Dangdang has announced investment 300 million yuan, Beijing east Let 500 million yuan, Suning easy to buy and Gome online mall sold 2 billion yuan promotional resources, Jingdong Mall, "618 Shop Celebration" is the first half of the price war to the climax. The scale effect of the electricity merchant price war was quickly refreshed in the second half of the year, and the "8 15" large-scale electric business war broke out, Jingdong Mall, Suning and Gome Mall and other online retailers on the mass sales of electric category, triggering an unprecedented market concern.

In this regard, China E-commerce Research Center analyst Mo Dai to reporters: "Price war on the one hand for the electricity dealers to snatch market share, to win more VCs, on the other hand, in the short term can enhance user stickiness." From the current situation, the price war is still the preferred marketing tool of electric business enterprises, in the future for some time, the electric business will still be dominated by price competition, but this is not a long-term solution. With the maturity of the online shopping model, price war or will gradually change to the value war, from commodity prices, commodity quality, logistics, courier, after-sales service and other all-round upgrade user experience, expand market share. ”

Diminishing marginal benefits of price warfare

The frequent price war of the electric dealer has promoted the consumer's online consumption habit, but also advance the consumption demand ahead of time, the marginal benefit of the second half price war will decrease.

The monitoring data disclosed by China Electronic Commerce Research Center yesterday also showed that, as of June 2012, the online retail market transaction size of 511.9 billion yuan, an increase of 46.6%. Mo Dai Green that: "The first half of 2012 network shopping market can maintain a high growth is mainly because, more and more consumers of consumer habits from offline to online, while the traditional retail enterprises to step up the distribution of electric business areas, expand visibility." In addition, the first half of 2012 broke out a large price war, the major electric dealers have joined the price war team, set off the network to buy a climax. ”

It is no coincidence that the electric trader joined the price war. From Analysys International analysis that, into the three quarter, the retail industry has gradually entered the sales season, and everyone in the electrical category, such as air-conditioning products will enter the end of sales, by the brand and suppliers from the Top-down sales pressure to promote the occurrence of price war. The online retail channel has become an effective means for the upstream enterprises to launch large-scale promotion because of the strong control of marketing effect and sales rhythm. In addition, from the competitive environment, Suning and Gome E-commerce strategy is becoming clearer, Jingdong Mall needs to through a moderate price war to consolidate the status of the river.

Analysys International analyst Shou sent to reporters: "For consumers, from the surface is in the enjoyment of a low-cost feast, but in fact the promotional efforts will not reach the consumer expectations, frequent price wars advance the consumption demand, will also result in the second half of the price war marginal benefits of diminishing." For each platform, the price war, whether it is the flow or the impact of sales, has brought about the results of a win. ”