The Impact of E-commerce Price War on Business Model Innovation

Reporter Fu Yong Beijing reported

From 6.18 to 8.15 and then to double 11, the price war seems to be the main way for the development of e-commerce industry. In this year's 6.18 point of view, the major e-commerce platform to actively participate in the price competition seems stronger than experience. Electricity industry frequently reflect the price war behind what kind of development logic? Future e-commerce in the end how to run to achieve the steady development of supply and demand? "Economic Information Daily" reporter interviewed on these issues Mr. Luo Qingqi appliance industry experts.

Price war misleading business sector

Economic Information Daily: Since the dawn of e-commerce has been seen as a low-cost product distribution platform, which led directly to the price war has been as an important means to promote the entire format and business development. Most e-commerce platforms at the expense of "burn" the price war, and create price war nodes such as 618, how do you view this phenomenon?

Luo Qingqi: I think the price war as a marketing mode is understandable, but for the e-commerce industry, the frequent appearance of the price war has now affected the business in the business model of innovation, the entire industry into a disorderly price competition , Deviated from the normal development track.

From the point of view of industrial properties, the external environment for the rise and development of the electricity business model is the arrival of the Internet economy, which has brought new subversion to the logic of the entire industry. In the era of the Internet economy, the traditional mass manufacturing model is being replaced by a mass customization model based on user interaction. In this industry change, the retail industry functions from a simple sales channel into an important platform for interactive user needs. However, under such industry background, frequent occurrence of disorderly price war in industry almost caused all e-commerce enterprises to fall into the opposite development path of subverting the industrial logic. Price war broke out.

Therefore, the nature of the thing itself is not right or wrong in many cases, the key lies in the environment and the scope and nodes of its application, just as the e-commerce price war, as a marketing tool there is no right or wrong, but if it The existence of the entire industry into a purely price war deformity model, it has become the biggest obstacle to the healthy development of the entire industry.

E-commerce industry to release the transition signal

"Economic Information Daily: From the performance of this year's 6.18 World War, the country has been relatively low-key United States has become the most active platform, showing the attitude of confrontation with Jingdong, which became the largest 6.18 this year, the period of view point. Is there any mystery behind this phenomenon?

Luo Qingqi: The phenomenon behind the release of the current price war turn signal, with the country as the representative of the United States with the full power of online and offline all-channel integration advantages of enterprises, the industry price war or will end.

All along, the e-commerce price war there is such a phenomenon: many e-commerce platform there is a priceless phenomenon, virtual standard price and other phenomena, which is the current people will e-commerce price war as the reason for saliva war. From the essence of the retail industry, the e-commerce price war evolved into the root war of words is the lack of supply and demand integration advantages. This is like a good gun but no bullets, the last can only become a beautiful look goods.

From this, it is imperative that the e-commerce industry bid farewell to the chaos of disorderly competition to exert its force from the root causes of the retail industry. Companies like GOME that have the advantages of both online and offline integration and a strong demand for supply chain integration can exert themselves in this competition as an exploration of changing the current industry power pattern and believe it will bring new changes to the entire industry .

Future e-commerce users need to iterate the user experience

"Economic Information Daily": After years of development, the current domestic e-commerce has not yet found a relatively mature mode of development, do you think the future e-commerce in the end how to develop in order to avoid falling into the situation of continuous price chaos?

Luo Qingqi: Although the current e-commerce companies use the Internet tools, but many should not be called Internet companies. Because user-centric Internet thinking is not reflected, these organizations still operate on their own.

In the era of Internet economy, the biggest task of the retail industry is to provide users with an iterative shopping experience. This shopping experience covers many aspects such as product, price and service. Therefore, what the leading enterprises need to do is how to enhance the user experience, E-commerce companies are engaged in price war saliva is different, to give users a more iterative experience is a manifestation of Internet thinking. It is along this path that companies such as GOME are exploring through multiple channels.

To provide users with an iterative shopping experience, e-commerce companies must transform themselves into an open platform with one end connected to a wide range of accurate customer needs and one end connected with suppliers' resources while continuously enhancing their ability to meet their own needs, such as logistics experience, Platform Ecology of Continuous Interaction between Demand and Supply.