Shop No. 1th Gege: "Price war" does not conform to business logic

Source: Internet
Author: User
Keywords Shop Number 1th

"Rationality", which now appears to be a "> domestic electric Business Industry, Unexpectedly became our reporter Interview No. 1th store Chairman Gege The process of the most often mentioned point of view, "reason" in the first view, both the industry's future expectations, but also to the industry's colleagues in the advice.

"Price war is not the right business model"

A humble little white building in Shanghai Zhangjiang Park is the headquarters of Shop No. 1th, and "language not astonishing death endlessly" Jingdong Liu and Dangdang guoqing compared to, Gege no matter in the speech or the style of doing things are not so retired, and and 1th shop CEO Liu Majestic share an office, And the practice of placing meetings tables in the office is rare among other business leaders. "Flat fast management mode, is the biggest feature of Shop No. 1th." Employees at Shop 1th expressed their feelings when they talked to the Nanfang daily reporter about the management characteristics of two bosses.

As a part of the electric business industry, the topic of "Electric dealer price war" cannot be avoided. The price war of the electric dealer is a long time, but this year June's electricity merchant price war is unusually violent, also let the electricity merchant "the fittest" the speed intensifies. From the high profile of Jingdong mall ignited the war, to suning easy to purchase the follow-up, and then to the day Cat Mall's Hao smashed up from behind, the price of the electricity business hit. However, the electric dealer price war This "long-standing problem", in the first place, it seems that there is not much relationship with shop No. 1th. "You see, even in the June when the price war was so fierce, there would be little movement," he said. Because in my opinion, the price war is not the right business model, does not conform to the business logic. "What we have just done to our peers is" really disagree. "

"The industry will return to rationality in two years"

"The price war is not right, I do not agree with the price war." "Gege has a very clear understanding of the price war for electricity dealers. "What the electric business should do is to provide the best user experience, to provide value to users, not price wars." Price wars are unhealthy, a way to get orders by burning money. "Gege's criticism of the electric dealer's price war a large part of the confidence is derived from its" exposure to price war "after the results, according to Gege, in the just concluded the 4 anniversary of July, 1th stores three hours completed 2008 full sales, in two days to complete the 2009 annual sales, Sales for the year 2010 were completed within one months. And in the number 1th store data statistics, 24 million registered users of the old users of the daily order contribution rate reached 70%. "The electric dealers are keen on the price war is not the customer's problem, but the electricity business industry vicious competition causes, the electricity merchant only then is profitable is the hard truth." ”

For the future development of the electric business industry, Gege to the reporter summed up his views, in the first place is the "rationalization" of the industry trend, is that the electrical business peers in order to nurture the market and mutual competition, made a lot of "irrational" behavior, such as the so-called "free shipping" and other initiatives, are part of the irrational category, Because the cost is ultimately still to bear, and now the general no longer unconditionally free shipping is a return to rational performance.

"According to my judgement, the electric business industry is bound to return to rationality in two years." "Gege said.

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