The price war of electricity dealers is a necessity of market economy

The price war of the electric Business enterprise is under the influence of the enterprise own understanding, the national tax or the related industry regulation, appear the rational development period of a certain period, but in the longer view, the price warfare is very difficult to eliminate, also does not rule out some time to appear obvious, brutal again price war. The biggest characteristic of market economy is that competition is difficult to stop, and price competition is only one manifestation of it.

From the point of view of market economy, as long as the company exists, it will face price competition and service competition. The traditional industry is so, the electric business competition is also difficult to exception. Last year's price war on electricity dealers still makes the industry more competitive. At present, the reality competition of the electric business industry shows: the round of group buying website, vertical business failure tide appeared, and large electric dealer's struggling is also very obvious. Domestic electric business leading enterprises Gome has called for the industry to stop the price war, but also has been the other leading enterprises of the attitude response, but the market economy competition trajectory shows that the overall price war will not stop, the trend of normality is obvious. From another point of view, at a certain stage or by the industry's own knowledge or policy industry norms and other factors, the price of a cycle into a relatively rational competition can be expected.

Although the electric business industry through the IPO financing or PE investment, the financial situation has improved, but the reality of operating loss makes the industry competition pressure has not been reduced. For example, the annual report of the listed companies, Gome sales revenue of 47.87 billion yuan last year, compared with the same period of 2011 59.821 billion yuan down 20%, net profit, the total loss of Gome last year 597 million, 2011 the same period for profit 1.84 billion. and through PE investment overweight Jingdong Mall, although not listed, but the reality of operating loss has not been significantly reversed. Last year, Gome's new stores 107, closed 137, stores up to 1049, plus unlisted stores, Gome group in mainland China, the total number of stores for 1670, the price war competition makes its business face serious challenges. Research on its trigger price competition in the field, home appliances, digital communications, computers, Home department stores, clothing, mother and child, books, audio-visual, food, building materials, etc. are covered.

From the perspective of the future development of e-commerce industry in China, the Chinese government proposes that by 2015, realizing the scale demonstration application of IoT in the important field of economy and society, breaking through a number of core technologies and preliminarily forming the industrial system of IoT, the security ability has obviously improved. In the capital market financing, it embodies the explicit policies to encourage financial capital, venture capital and private capitals to invest in Internet applications and industrial development. Data show that e-commerce companies in recent years, the turnover of the traditional retail industry, logistics industry have formed a market impact. We take Jingdong as an example, its company data shows: Beijing East 2012 platform turnover has exceeded 60 billion yuan, and is expected in 2013 this number will reach 100 billion yuan. This leap-forward development, in itself, shows the scope of vitality and prospects in its field. This is also our country electric business enterprise development unceasingly emerges the attraction, can anticipate along with the industry scale and the capital strength, the service level competition, its price war trend will remain.

Recently, senior vice president of Gome Electrical appliances, Gome online general manager Shangui first in the Gome official micro-blog said: The industry in the annual loss, but also tirelessly waving the price butcher knife, often can win the financing of favor, the final result can only be "price war to everybody killed, Monopoly doctrine was born." "This fully demonstrates that the electric business enterprise to the price war a depth and the reality feeling." For this, Jingdong Mall executives recently said that the price competition phase will be over, Jingdong will not pursue simple low price competition. The two electrical appliance merchants through the market competition almost at the same time to the price war statement that the excessive price war ultimately hurt the electric business enterprise's overall development, will eventually hurt itself.

According to the research, the essence of price warfare in market economics is embodied in three aspects, that is, to promote the market position of the enterprise, to maintain the market share of the enterprise, and then to start from the subdivision category, to improve the business scale, and finally to maintain the corporate image from the angle of industry competition. In fact, last year, the Beijing-east, Gome, suning three home appliances business leading companies price war, which revolves around the above factors is its main driving force.

With the development of the electric business in our country, the author thinks, whether it is the electric business enterprise or the regulation of the policy regulation, it may feel the impact and harm of the price war on the industry. The above-mentioned understanding of the electric business enterprise itself indicates the excessive emotion of its price war, and the regulation or regulation of the state tax and policy dynamic information shows the signs of further overweight. While the price war is a moment of benefit to consumers, in the long run, service and quality levels may be reduced by price wars. Therefore, under the influence of the enterprise's own understanding, the national tax or relevant industry regulations, the price war of the electric Business enterprise has a rational development period of a certain period, but in the longer term, the price warfare is difficult to eliminate, and does not rule out the obvious and brutal price war again at some point. The biggest characteristic of market economy is that competition is difficult to stop, and price competition is only one manifestation of it.