Sounded the drums in China's E-commerce market

Although it is understood by American investors as China's Amazon, Dangdang obviously does not want to be simply called China's Amazon, because the authentic Amazon is called the Amazon in China, although not listed directly, but the current market share in the business of E-commerce is still in the rankings. Before both, the boss of the market share of the leader is Jingdong mall.

Price war and saliva war

New Wengwen of the "entrepreneur" magazine wrote on Weibo: "Watching so many companies flocked to the listing, the children's boots on the scarf are dumbfounded, of course, some children's boots such as Liu (micro-blog) will be nervous: if so hot, wait until I am on the time should not turn cold? (Editor's note: Child boots for the Internet language, meaning for students.) )

In the 2009 statistics of the two institutions of the research Center, the Jingdong Mall is ranked as the first in the market, followed by Amazon, and the third when.

Ranked third when all listed, Boss Jingdong Mall how to do?

Jingdong Mall CEO Liu First announced the launch of price war, and the war is directed at the most powerful Dangdang-books. "Every book is 20% cheaper than a competitor since December 14," Liu announced. ”

Since 1997, Guoqing, Yu couple founded Dangdang on the bookstore, to the present has become the Chinese network book sales boss. Couch on the side of the people do not let others snore sleep?

Guoqing immediately to the challenge. "One or two dollars is not cheap to lose." They have just more than 100,000 kinds of books, and Dangdang already has more than 600,000 kinds of books, our 80% customers can reach the next day. ”

For Guoqing's argument, Liu is called Dangdang's crawl system needs to be updated, because Jingdong Mall has more than 220,000 books, "As for the delivery speed, it should be the decision of the consumer." ”

Coincidentally, Jingdong Mall announced the launch of the book Price War Day, Dangdang ended the third Lian Yang, the share price fell more than 10%.

"I think it's a normal callback when the share price crash is not related to the book Wars," Liu said in a winner's stance on Weibo. If the national day remains silent or tomorrow when the share price continues to fall, I will consider raising the price. I only hope that the national Day understand: The listing does not represent unmatched, this price war you can not afford! ”

But the incident rose another step yesterday, Liu on Sina Weibo on the disclosure, Dangdang to some publishers and publishing agencies to send letters, ask the other party and Beijing East cooperation: "You mail claiming that they are listed companies, there are countless money, jingdong only the wind cast a poor little money, will soon burn out." Ask publishers not to stand on the wrong team! And immediately stop the supply to jingdong and so on, I really want to open your email content so that everyone comment! The threat is too heavy! Advise you to respect your partner. ”

The price war launched by Jingdong was just the beginning, as did Amazon, which also joined the Price Corps, announcing that it would drop 20% on the lowest-net price of the hundreds of thousands of best-selling books and keep free shipping.

Internet commentator Liu Xingliang (Weibo) believes that Jingdong Mall and the Amazon's price war, will be released after the launch of the first financial results when the pressure exerted.

Then when the promotion scheme was launched: The roll back promotion, the maximum return volume reached 30%.

For the three-party price war and the war of words, the intention of the Beijing-east to launch a book war is actually a marketing war, publicity of its own book business, after all, most consumers feel that Jingdong is to buy digital products, when it is selling books.

Bo, an internet commentator, believes that when it should not be too drastic, because Beijing East sells books is not too many people know, but guoqing this move, but will let jingdong propaganda. "The IPO financing 300 million dollars, the fund reserves more powerful Dangdang has not been afraid of anyone's price war." We should do some high quality service. ”

When it's a worry

And when the first listing does not explain its strong position in the field of business.

Columnist Cheng (Weibo) questioned when it might turn into the second: "The last quarter of the huge losses, the quarter of a 1% profit margin listed, followed by Beijing-east, Taobao." What do you take to make a profit? "Previously, as a result of the alleged provision of false listing financial information, Macaulay in the United States suffered class action, share prices have plunged."

Competitors are also very unwilling to be listed.

Every customer prudential product CEO aged (micro-bo) for the listing of Guoqing after the High-profile also some look not past: "To be honest, one months later, when the fourth quarter of 2010 is sure to open the financial results, I do not want it to fall too miserably." China's platform for the Battle of the Chinese, Jingdong won the chance of 10 times times when. ”

Eric Consulting data show that in the apparel market, when the 2009 revenue for 170 million yuan, market share of 4.4%, where the customer prudential goods to 1.22 billion revenue, 31.3% of the market share ranked first. Of course, as we all know, when the revenue of 80% from the book sales, department stores are only a key area of its expansion.

Coincidentally, although only clothing sales, where customer-prudential products in China, the market ranking is the third, after the When, no wonder has been more tolerant of aging to have sufficient funds, it is likely to begin to expand the when to say sarcastic remarks.

Fortunately, despite its low profit margins, Dangdang has been profitable since 2009. Bo said that, looking back over the past more than 10 years, as a result of financial constraints, when the expansion from the book to other areas to a few degrees. "So when you have the money, you need to find a quick growth point as soon as possible." Because for the enterprise, the most important thing is sales growth and scale, with scale, will bring faster growth and industrial discourse. ”

Bo that when the gap between the book field and the second best Amazon is not particularly big, so growth will be subject to a certain limit, but in other areas, such as clothing department stores, with financial strength, there is likely to be a better opportunity.

For China's E-commerce market, Bo think it is hard to say that the bubble, "China's e-commerce is only just beginning, China's business development is far less than the United States, and in China, E-commerce will be more quickly covered in the West, so now when the market value relative to its influence, still seem a lot smaller, If it is to keep growing fast, there is still a lot of imagination in its growth space. ”

Liu, who launched the war on books, is still doing marketing for himself, he said on his microblog, "in order to protect the interests of the publishers that have cooperated with us, we are ready to stop the direct price reduction method and continue to bring benefits to the net friend." National Day you do not take back the hands of the ban, jingdong price knife will never be scabbard! The broadcast is over! To Suqian's hometown! ”

Event Playback

February 3

Liu, chairman of Jingdong Mall's board of directors, said he would not be involved in book sales for 5 years;

November 1

Jingdong Mall book channel On-line test, and dug up the outstanding Amazon in charge of the book's former vice President Shi Tao as the Jingdong Mall book Mining sales vice president;

December 8

Jingdong Mall book channel, excellent network at the same time for the book Big Promotion;

December 8

Dangdang Landing in the New York exchange;

December 10

Dangdang United President Guoqing in the media interview, said, "retaliatory retaliation" to fight the dare to provoke a price war opponents;

Liu through Weibo to Guoqing challenge, saying "every book is 20% cheaper than the opponent."

December 14

Jingdong Mall book channel launched "Iron card and above member price", compared to the original Beijing-east price is 20% cheaper, the book War officially started.