Qishidaoming price war: The loss of the enclosure to let geometry

Recently, many users found from when, Jingdong and other online shopping mall promotional messages, but, in the face of "the lowest price", "crazy let" such promotional words, people seem to have some numbness.

In the atmosphere of prolonged winter, 2012 was called the Year of life and death of electric dealers. From the beginning of the year, to Beijing-east, Suning, such as easy to buy all the major electric dealers to start a full price war, to 6.18 Jing Dong Shop and was hit by the power of the peak.

In the period of one months, suning easy to buy, Jingdong Mall, Day Cat Mall, Bowser nets, shop 1th, Amazon China, Dangdang and many other commercial mall has opened up posture, turns to price the blood spell. According to NetEase Youdao recently released "NET Purchase price incomplete report", the June net purchase CPI changes to 11.3%, compared with May down 7.6%, with the consumer index CPI to maintain the same trend, the average price of goods to the lowest in six months. Among them, June Jingdong Mall accounted for China's 42.1% of the flow of the market, more than the cat accounted for 27.2%, the first to sit on the market boss, and Jingdong Mall and the Cat mall traffic accounted for more than half of the overall business market.

However, the end of the "6.18 World War" did not make the electricity dealer price war interim paragraph, after the Beijing-east "Normandy Benefit War", Gome Mall, Suning easy to buy, the days of cats, when the other shouted out a more attractive slogan. The chief executive, Liu, said in a recent microblog that electricity dealers are about to embark on a new round of price wars, claiming that the price war is bigger and more brutal than before.

After another round of "melee" price wars in the electric business, some of the players survived, some down, is a few happy several families worry, according to people familiar with the situation, although the electric business website promotions, improve sales, but because the price drop again, so that the original limited profit space is also compressed, A lot of enterprises in fact, the preferential activities in the end is to "pay a profit yell" to finish, and from the industry, some promotional "unspoken rules" and the actual experience, the electricity dealer price war to consumers and not to let it be so big. What's so fishy about that?

The electric dealer "the frame" behind

"The cat will take out 1 billion yuan red envelopes to subsidize consumers and businesses." "July 18, Jingdong Mall board chairman Liu's price war manifesto" in the 34th quarter of this year will set off the largest, most tragic and most comprehensive price war in China's electric business history! "Ringing, the first to fight the electric dealer then appeared, and at this time, the distance is called the electric dealer price war peak" 6.18 "just the past one months. Predictably, with the second half of the year National Day, double Xi., double 12, Christmas and other shopping peaks in turn, the price of the electric circle will be more brutal.

In fact, every month since April this year, electricity dealers have been packaging "price wars" with new gimmicks. June 18, in the Beijing-east "birthday" day, to encircle the name of Beijing and east, Suning easy to buy, Bowser, Taobao collective war. Seems dissatisfied with their previous silence, July 18, Gome Online mall jumped out, claiming to play "real price war", and the rhetoric of the peer "before the price war is false."

According to the latest statistics, China's online shopping market in 2011 the size of nearly 800 billion, up to 773.56 billion yuan, accounting for the total retail sales of consumer goods 4.3%; At the same time, online shopping users will reach 187 million people. Online shopping has become the industry's main driving force.

However, the electrical business of the winter Shadow is far from the past, the "live" goal seems to apply not only to the small and medium power, many large electric operators are also biting teeth a large range of low price promotions, at the same time face the double pressure of capital and market. There is a group of interesting figures in the electric business industry: Jingdong Mall Gross Profit margin is 7%-8%, and we learn the object of the U.S. Amazon's gross margin is basically stable in more than 20%, which means that the price war to the domestic electricity dealers brought more serious losses.

July 16, Jingdong Mall CEO Liu revealed on its microblog, Jingdong Mall 2012 The first half of the results show that the company's sales growth over 120%,GMV (turnover) year-on-year 161% growth. "Only one figure is ugly: Net profit is negative!" and Suning Electric Appliance Group released the 2012.5 annual performance revision notice, Suning easy to buy the first half to achieve sales of 5.28 billion yuan, far less than expected, and large-scale concessions also dragged down the group's overall performance growth.

The more serious problem is that Liu said that "the electronic Business data fraud is the industry's open secret", then the price war how much meaning?

What is the benefit of geometry?

Because the summer vacation is including home appliances, digital, home and other products of the sales season, many consumers have in the recent purchase of products demand, coupled with the price war between the dealers does bring a lot of concessions, so the electricity business sales are beginning to soar.

But when waiting for a single order, it starts to hesitate. A large number of coupons limited to the store and the use of a very short period of time, the commodity price is still high after the phenomenon of consumers can hardly really get the perfect shopping experience.

In round after round of the war, all the merchants are claiming to take out billions of concessions to reduce prices and promotions. In fact, before the start of the promotion business can not accurately calculate the extent of concessions, there are people in the industry that the price war is actually a promotion, a lot of electricity business said to let a few billion, meaning the equivalent of less to earn these several billion. However, when the product has not been sold out, why can you accurately predict how many goods you will sell? If you cannot accurately calculate the future sales of the site, then the extent of the benefit is obviously very moisture, also very unscientific.

According to the industry analysis, the price of electricity dealers in the war to let the number of the general presence of water, if you take out 500 million, the most also take out 50 million, plus the manufacturers of some promotional activities. In fact, in the price war, electric dealers often only need to come up with some advertising fees and marketing costs, let the cost is actually distributed to suppliers and the Web site merchants.

Part of the cost of the price war by the merchant has been the industry is not surprising things, in the electric business platform to open a shop, suppliers need to pay the power of the website management fees, as well as Sales Commission Commission. The electricity merchant website only can let out partial commission to be able to persuade the merchant to enthusiastically participate in the price war. In fact, some suppliers do not want a price war to disrupt the price system. But they are in front of the electric business website, sometimes relatively weak, the purchase price is owed by the electricity merchant's website, in order to impact the sales, had to continue to supply to the electricity merchant website, and in prices war undertook to reduce prices and let the cost, becomes the real victim.

Now the question is, if the price war is really not a hit, can the electricity dealers come up with more sincerity, so that customers are truly satisfied rather than lost in round and round the yell? If you continue to pure blood and ignore a deeper user experience, the price war is not worth fighting.