Tang June: Do the internet to learn to "shout" electric dealers play price war is outdated

When I was young, I liked the Chinese New Year, when the festival was few, only the children can wear the fresh clothes, the happy degree is comparable to the present children do not do homework during the Spring Festival.

Now the festival is more and more, as long as you want, you can celebrate every day. In the past, the "festival", which sounds ironic, has now become a major festival for businesses: "Double 11", "Double 12" ... Electric dealers make one crazy shopping day after another. Writing this article when I heard that the electrical business in preparation for the January 4, 2013 "1314" homophonic for "life" of the day.

"Festive" is only an excuse to attract attention, the real drunk Weng is intended to increase popularity, increase sales, but also increase traffic, and traffic is the Internet industry's most important core competitiveness. China's first listed http://www.aliyun.com/zixun/aggregation/7578.html "> Electric Business Enterprise Dangdang, in the past claiming to be an equal with Taobao, but recently had to open in the days when the Cat Mall, The guoqing, who always had a big voice, said sincerely: "We are not pretending, who let people have large flow." This sentence said "flow is big is the Boss" truth.

Chinese power companies are waiting for the Chinese version of the Amazon Power business miracle: Amazon in the early seven consecutive years of losses, but only in two years, the previous loss of money to earn back, but also make more.

But there is still a lack of necessary conditions for Chinese power makers to replicate Amazon. Price war, low price promotion is typical of the traditional retail business model, the price of Chinese electricity business is internal friction, is the play of the last century, harm the business industry, and finally harm consumers. China's electric business giants Jingdong's gross profit margin is 5.5%, and Amazon's gross profit margin is 20%~25%, only this can be seen at home and abroad the difference between the electric quotient.

At present, domestic electric dealer gross profit margin is very low, playing price war is to find death, but do not fight price war is dead, the pattern is very cruel. A shop founder Gege described very aptly: "E-commerce is like a lake clear water, looks very shallow, but when the real wading in the travel time, only to find that won very, far more complex than imagined." ”

China's electric dealers really can't afford to hurt, but what's the problem?

First of all, our electric dealers lack of brand awareness, there is no bargaining power. In the face of book suppliers, Amazon has its own bargaining power, from the price of vendors and other dealers are not the same. But the Chinese electric dealer at best is only the channel dealer, can only provide the platform which helps the supplier to sell the thing.

Secondly, the homogeneity of the product is serious. We all sell the same thing, are bent on doing big and strong, product complete, so the volume is relatively small.

The biggest problem is the vicious price competition. Domestic electrical Business User experience is similar, we all rely on low prices to attract consumers, resulting in inadequate customer stickiness, repeat the purchase rate is too low. So can only play price war, low gross margin to seek the intuitive price of temptation, seriously damaging the normal price system.

So at present the pattern of China's electricity quotient is: small make money, big bigger compensate, competition is fool today or tomorrow, die in the day after Tomorrow is the winner. To profit, we must get rid of the vicious circle of price war, return to the essence of traditional retailing, pay attention to product quality and service, improve the stickiness of users.

All industries do not rely solely on price competition to produce great enterprises, because the price war will eventually bring low profits, so that you can not open up new markets, not to develop the next generation of products, can not have long-term goals ...

Over the past decade, the internet has created a lot of heroes, Ma Yun, Robin Li, Ma Teng ... The Internet is a river, in this mixed with a lot of people at the beginning of the lake, dare to shout, regardless of the consequences. And the Internet is a "shout" place, the voice is not, basically no one will listen, so learn to "shout".

I want to shout is: "Price war is the play of the last century, the Power quotient heroes!" ”

Tang June

Famous professional managers, Xinhua Group CEO and President.