The electric dealer who doesn't fight the price war is not a good electric dealer?

August 11 Night, Gome President Wang Junzhou to Li Juntao, Guixian and other Gome group senior executives sent out of the internal mail, content shows: Gome's strategic objectives are: first, Gome line business beyond Suning, Gome online to complete beyond suning easy to buy, and Gome line under the price must be overall lower than jingdong. Another mail that flows out is Gome online chairman Shangui issued first, it sends the general attack to the Gome on-line all staff mobilization: Gome's second half strategy is the on-line electric power merchant as well as the offline store all business system must ensure the price is overall lower than the Jingdong, the commodity price tightly pegged to the jingdong to adjust at anytime If the price of a commodity is found to be three consecutive times higher than Jingdong, the relevant person will be fired directly.

This marketing approach to internal mail outflows has long been Lee and not discussed. If, as mentioned in the mail, Gome can really do the price lower than Jingdong, it is a consumer exultation. The merchant fights the price war, the final benefit must be the consumer. For the price war, today on a platform appeared an article media spread very widely, the article mentioned "Play price war, in the electric business industry is called cut meat, not only in the cutting of the competitor's meat, but also in cutting their own meat." The so-called "wounded enemy 800, the loss of 1000", has always been the most unwise hand-to-hand combat, no technical content can be said ... Gome Online This repeatedly dozen price wars, consumption is indeed their own real money profits, as well as their brand goodwill. In this view, the veterans do not agree with the "price war", I would like to talk about their views.

Before the beginning of the electricity business, the domestic goods have already entered the buyer market with oversupply. It is the use of price advantages to drive consumers to move from offline to online. It can be said that the promotion of Taobao as a representative of the comprehensive electric platform to kill subversion of traditional retail channels is an important reason is the price gap. The advantage of the price war of the electric Business platform is: 1. Drive the consumer with price. Unlike brand electric dealers, regardless of the vertical electric business platform or a comprehensive electric platform, they are very difficult like the brand electric dealer through the promotion of product value to achieve the brand premium, the accumulation of customer education consumers the best way to drive is the price, so that consumers to buy XX products to XX site on the consumption of the mind. The platform itself is a retailer, the same product if there is no price advantage of the customer why the Internet to buy? 2. Use price war to play the status of the lake. Electric business platform dozen price war a very important significance is to play the status of the electric business industry, Jingdong is not relying on a long-term price war to kill the traditional 3C retail channels, catch up with Suning gome? Ali is not to mention, the annual production of a variety of double 11, 99 major promotion, 38 girls festival, such as pretexts Marketing festival to reduce prices to the traditional channels of war, the essence of price war is not it?

In a mature and fully competitive market economy system, price war is an important ability of enterprise survival, he is not unique to the Internet, but the internet has magnified the significance of the price war. For similar to 3C such standardized high price products, customers are more sensitive to price, playing price war is the type of electronic business platform in the Internet to survive an important way. What is called the price war "kill 800, self damage 1000" is a fallacy, price war as an important marketing strategy of the electric business platform, it does not have any problems, the problem is to see you will not play, play is not beautiful, play well the market is your, not good of course there is the risk of interrupting their legs, everything has its positive and negative.

One of the most important reasons for the difficulty of the traditional enterprises is that the traditional enterprises emphasize the profit too much at the beginning, but ignore the market share and scale. As they hesitated, the new electric-business platforms had beaten their rivals down with price wars. For the electric business platform, the price war is not to fight, but how to fight the problem.

The price war will cause a sharp decline in corporate profits, which is why many companies and experts do not agree with the price war is an important reason. Is the price war really against profit? Veterans do not think of the impact on profits, in theory, the price war brought about by the increase in sales base, the corresponding increase in profits. Especially for the electric business platform, the price war is a low-cost increase in traffic marketing means. Price war is a free flow of the marketing method, through the price war to attract a large number of free flow, enterprises will eventually save the cost of marketing to give consumers. To say the least, even cutting meat is a supplier's meat to the platform. Why the business on the platform is willing to cut meat, because: one, sales turnover, small profits but quick turnover. Second, if the use of good flow, to do long tail products related to sales, profits not only will not appear to decline, but the conversion rate of flow can be improved. Third, participate in the large-scale activities of the platform, in addition to obtain considerable sales, more importantly, can get a brand exposure opportunity. So it is profitable for both the platform and the merchant. The real price war will not affect the platform of the electric business has never affected the profit, only can not play will affect the profit.

1. The price war must have the good faith. Now the price war is a lot of consumers do not buy, not price war is not attractive, but the lack of collective integrity of the electric platform, the first to raise prices and discount the trick Lee, so that consumers discouraged. The wolf came to the story that everyone has heard, cheat once on the line, and then want to cheat the third time nobody wants to believe. Gome Online to the effect of price war, how to reshape the psychological expectations of consumers, really let consumers accept the authenticity of their low price is its priority. For example, you have to show your own historical price curve, to prove that they did not first lifted after the bar (although there is also the possibility of cheating), seemingly now only Taobao did. For example, do you dare to explode your competitor's price on your own product page? Can not do what send hundreds of millions of billions of red envelopes self-deception marketing stunt, consumers are not fools, send red envelopes than the actual goods to make a discount more enjoyable.

2. Price wars are a protracted war. In the backward passive position of the electric business platform, the price war to continue to play, play a meaningless, like throwing a stone into the sea, can not lift the layers of ripples. The first two years of the mammoth Su Ning and Jingdong price war, playing in full swing, but after the price war consumers a contrast, or jingdong price more affordable. So price war is the long-term strategy to catch up with opponents, to play a price war, it is necessary to do a long-term lower than the competitor's preparation, at least the price can not be higher than competitors.

3. Price war should be targeted. To play a price war, we must find their own goals, for the competitors of hot products to long-term directional play. 28 Law also applies to the price war, staring at the other side of the sale of the top 20%~30% products mercilessly hit, when both price difference is higher than 50 yuan, in fact, can impress some consumers. Of course, the greater the price difference is more attractive, the electric business platform to at least learn to calculate the best ratio to adjust the price range.

4. The price war should be a combination of boxing. The price war surface is one kind of marketing strategy, actually is the systematic marketing way, the test is the team coordinated combat level. For example, whether you have done the relevant sales, long tail flow of the channel is reasonable, the website service experience is to keep pace with your logistics experience, your installation experience, your after-sales service is enough to scream. such as Suning Gome such a platform, it is a good advantage in the store experience, installation and after-sales service, but unfortunately the two giants in addition to only play price war hype, and did not do a good job in the service level of the matching game. For example, do you dare to promise faster than your competitors? Install do you dare to promise free installation? Do you dare to be superior to your competitors after sale?

5. Price wars cannot be separated from the value of goods. No matter how the price war, the goods should not be separated from the value of their goods, otherwise the price war will not be able to improve the role of sales, but can play a negative role. What we often see is that when Jingdong and Tian Cats are playing a price war (a big promotional holiday), some of the products on Taobao will be much lower than normal prices, perhaps even half the price. When you see these low-cost products, the vast majority of consumers may question the quality of the product, but affect the credibility of the platform.

Finally summed up: price war is not omnipotent, but in the early days of the rise of the electric business platform, in order to expand market share, enhance influence, price war is absolutely necessary, a truly successful enterprise ultimately rely on the operation of real Kung Fu. Hurt you is not the price war itself, but your products, operations, and other systems supporting services, price war is only the appearance, it reflects a company's operating costs control ability. It may be that the price of the product is down, but other aspects of his operating costs are also falling.

I am the electric business veteran matador, the Internet strategy analyst, is concerned about the traditional industry's internet transformation. Welcome to micro-Credit account: torero2013 (personal micro-letter torero2012), weekly update of the exclusive business Research dry goods, Sina Weibo account: @ Electric Business Veteran Matador