Small and medium electric enterprises denounce price war to build platform advantage

Source: Internet
Author: User
Keywords Electricity dealer price war

Securities Times reporter Zheng

For the electric business enterprise, this is the best time, is also the worst time. On the one hand, tens of billions of dollars a year of market turnover to show that the market has matured; on the other hand, a few rounds of price war to Taobao, Beijing and east, such as a few big electric giants concentrated, but also let a lot of small and medium-sized electric business. In the last Saturday, "2012 pioneering state Annual Meeting", a lot of electric business enterprises can not see the direction of the industry, they jointly blame the price war, and that the electricity business is not suitable for its own brand, should explore the advantages of the platform.

Price war "condemnation"

After several years of development, electricity business this year low price competition, vicious competition intensified. This sparked concern among insiders that the main problem for China's electricity dealers is to be kidnapped by price wars.

This year, the development of the electric business industry is very lively. "The chief executive of the Royal Joint Capital concludes that there are many big events this year," Alibaba in Hong Kong, Taobao "double 11" one day deal 19.1 billion, when settled into the cat, Jing Dong Rong A sum of money, every guest transformation, Suning appliances (002024, stock bar) also entered the electric business, the industry has undergone a very profound change. Erhai said, on the other hand, some small electric business enterprises, including many group buying enterprises, financing difficulties, layoffs. At the same time, a group of customers, Jingdong Mall and other enterprises are still not profitable to burn money.

Erhai at the meeting to some of the electrical business enterprises to ask the question: the real core value of the electrical business where? How does the industry achieve sustainable development?

"The first thing you have to be sure of is that there is no problem with the electric business." "Established 3 years to achieve annual sales of 150 million yuan of wine, its CEO Luide is one of the earliest E-commerce practitioners." At the meeting, Luide condemned the price war, which is the first problem that the current electric business is facing, and it is difficult to solve.

Tencent's investment in the vertical category of consumer online shoe city good buy CEO Li Shubin to this recognition. He pointed out that the current problems of China's electricity dealers are mainly cultural issues. "Anything is traded on the electric dealer, it is sold to the price of cabbage." The low price produces the scale, the scale produces the cost superiority, then returns to produce the lower low price, the Chinese electricity trader has been troubled by this kind of circle. "he said.

Luide believes that the current problems of the electric business industry also include products and services, the homogenization of serious, differentiated development ideas are not fully released, and many people do not understand the electrical quotient.

The platform advantage of the electric trader

The price war seems to have been the magic weapon of the big Electric Dealer competition, but reduced to "condemnation". So is there another way to save the electricity business?

Luide that the brand is not in fact the category of E-commerce, E-commerce is first as a platform exists. As a platform, the electrical business to reduce costs can only rely on category expansion to scale, only to do large-scale to reduce costs. Compared with the traditional stores, the core advantage of the electric power is that it can enlarge the capacity without limit, and the traditional store under the line is limited, "for the future of the channel type of electric business, we must rely on the scale to win." ”

Li Shubin also thinks the current market environment is more suitable for the electric business platform. He believes that at present the mainstream people buy mainstream products stage. In fact, Taobao Cat's operation is also based on the idea that the cat is under the line of the brand has been aggressively led to the Internet. In the future, what people buy online, what they buy online, the electricity quotient is to provide users with such a service. Good buy also continues to change in this respect.

On the road of electric quotient as platform, besides scale and variety expansion, Luide also believes that electric business should attach importance to the extension of industrial chain. He is an example of his own wine-American network. He said that the network around the wine products and the industry itself, along the industrial chain to extend the cost of their own control to make a unique advantage.

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