The hole in the price war

Abstract: In the face of the industry's query sound, just stepped into the electricity business Bank of muddy water performance is good. Opening one months, merchant number thousand, membership number hundreds of thousands of. When the industry shouted Wolf came, CCB made it clear that it has no intention of shopping with Taobao and other power companies, from the source

14th morning, Jingdong Mall CEO Liu a micro-blog to the electric business industry price war to a new climax. He announced that the BoE three years 0 gross margin, all of us electric guarantee than Suning, Gome chain cheaper than at least 10%, and will be to suning gome entity store staff to ensure the implementation of the policy.

In addition to the physical storefront, Liu also extended the war to Suning's online mall. He said, 15th nine o'clock in the morning, Jingdong Mall all big home appliances prices than suning line cheaper, and is no bottom line cheap, if Su ning dares to sell 1 yuan, that jingdong price must be 0 yuan.

In this respect, suning easy to buy executive Vice President Li Bin soon give back: "Suning easy to buy, including home appliances, all product prices must be lower than Jingdong, any netizen found that the price of suning is higher than the east, we will immediately adjust prices, and give the feedback has been purchased twice times the difference compensation. 15th 9:00, Suning will start the history of the most powerful promotional efforts. ”

At the same time, Gome also claims not to evade any form of price war. Gome Vice President Yang said that starting from 15th 9 o'clock, Gome Online shopping mall line of goods prices will be 5% lower than Jingdong mall.

Why do we have to choose electricity?

As for Jingdong Mall this time why want to choose everyone electric category as the main battlefield of price war. Liu explanation is, because suning everyone electric gross margin up to 25%, that is to suning shop to buy a 5000 yuan refrigerator, suning to earn 1250 yuan, and jingdong only add 150 yuan can sell. "Only people have enough price war space, other categories even if the cheap also a few yuan money." ”

In fact, Liu a slightly playful discourse, Jingdong has another consideration. A person in the industry to Sina Science and Technology analysis said that the high price of electricity, the choice of everyone electricity price war will be a strong impetus to the Beijing East Guest unit price, sales soared.

Earlier, Liu has repeatedly stressed the importance of scale for Jingdong mall survival, he had claimed that the 50 billion scale is the safety margin of Beijing east.

In May this year, Beijing East High level has held a listing in Hong Kong, Jingdong Mall disclosed that its 2011-year income of 21.2 billion yuan (water containing platform 26.9 billion). Jingdong Mall's plan is that 2012 reached 45 billion yuan scale, 2013-year income of more than 70 billion yuan.

Maige Investment Management company partner Guo Kai Analysis said that Jingdong Mall in the online market share is close to saturation, to continue high-speed growth must be still in the gome to buy electrical appliances people pull to the Internet.

"Beijing east as long as the United States Suning store price low, and so that people understand this, to achieve the purpose." Guo Kai said, now the news has been reported, Jingdong is free to do a big advertisement, although the price war trend is still unclear, but Suning Gome line shop has lost.

Liu said the price war was due to retaliation for several attacks by rivals. In his microblog, he revealed that he had been confronted by rival rumors that Beijing east did not have money to sell land, store celebrations smashed the field, gun-wen smear, obstruct suppliers and Beijing-east cooperation, and even use individual local government relations to "the whole" Jing Dong.

The hole in the price war

For the authenticity of the August 15 price war, Jingdong Mall's old rival Dangdang joint President Guoqing Evaluation said that the Beijing-east move is purely gimmick. "What's the price of a war?" Guoqing said, Dangdang's publications and department store prices cheaper than offline 10% to 35%, if the parity, the east should be with Suning Gome's online mall parity.

Tencent's consumer website Xun that Beijing East claimed that its big home appliance 0 gross profit margin may only be 0 margin of the sales margin. "The sales margin does not include the sale of the manufacturers return point, etc. (industry called background gross Profit), and home appliances industry profits mainly in the background margin." ”

Prominent legal person Zhao occupation said, in the previous price war has occurred in such a situation: some low-cost goods from beginning to end out of stock, not to order, or only a small amount of inventory, but accept a large number of orders, and then out of stock to cancel orders.

The above electric business personage tells Sina Technology, to jingdong such big retailer, home appliance Enterprise usually will provide "special commodity", although with the line sale is the same item, but the nominal model is different.

"When consumers are comparing the prices of these goods, they will find that the same type of merchandise sold by Jingdong is not at all on the line or in other online shopping malls." He disclosed that this method of operation will confuse, so that consumers can not really parity, so that the return of the difference and other commitments into empty talk.

In Ecapital Capital CEO ran, in the long run, no matter who wins the negative, the result of the abnormal price will eliminate competition rather than promote competition, and any elimination of competition may be consumers should be vigilant. "As a consumer, I still hope that major retailers bleed to the end of the phase of the frenzied preferential consumer." ”

The chairman of the Sino-Italian International Holdings Limited, Wang ran, coincides with the view. He believes that the electric business can not rely on price war to defeat all competitors to form an oligopoly, the large consumer market should accommodate the next batch of different scales of different characteristics of the electricity quotient, in addition to price, user experience payment and distribution after-sales service will form the core competitiveness.

"The long-term consequences of vicious price competition will be conductive to the entire industrial chain of manufacturing industry, the quality of products will fall or even pressure across the entire production system." Electricity dealer price war is enough. He said at last.