The price war reflects the drawbacks of the commercial model of the extensive competition of the electricity quotient homogeneity

China News agency, Beijing, August 21: "Price of Blood" reflects the drawbacks of Chinese electric business model

Author Pang Mowgli

Hit of Jing-dong, Suning, gome new round of "Price blood spell" recently temporarily Jankin. Qiping, an E-commerce expert at the Chinese Academy of Social Sciences, said in an interview with the Xinhua news agency that the price war reflected the drawbacks of the commercial model of the extensive competition of the electricity quotient.

August 14, Liu, chairman and chief executive of Jingdong Mall, announced on its microblog that "Beijing East electric power 0 margin sales within three years", "all of us more than Gome, suning chain cheaper than at least 10%." The manifesto quickly received a microblog response from the executive vice-president of Suning Tesco. "Price war" begins.

Since then, Jing-dong, Suning, Gome began you to my "war of words", sometimes even a few minutes a micro-blog. Jingdong also put "ruthless words", in order to beat opponents at 0 yuan sales. Subsequently, Dangdang, easy to network and other well-known domestic electric business enterprises have announced the price reduction, jump into the war circle.

But the price war, known as "the Worst in history", lasted less than a week and slowly subsided. Although Liu 17th Weibo said "The price war never ends that day", in fact, these companies have begun to quietly raise prices.

Media exposure, electric business enterprises only stop on the mouth of the "yell", the actual price reduction is very low, and some of the price of goods appear "out of stock", "slow delivery" and so on, consumers actually did not taste "sweetness." A moment of "hype", "scam" and other statements are rife.

China Academy of Social Sciences Information Research Center Secretary General, E-commerce Association executive Director Qiping that "noisy" price war behind the hidden power of the weak capital chain. Many businesses need to "enrich" their lives by financing them from time to times.

Suning, for example, last month raised 4.7 billion yuan through additional financing, after cash, this month again announced the issue of less than 8 billion yuan in corporate bonds.

Qiping said that in order to obtain more funds, some enterprises by playing "price war" way to compete for more market share, but in fact this is thirst, is "contrary to market law."

In recent years, the rapid development of e-commerce in China, market turnover and scale has been expanding. In May this year, the Chinese Academy of Social Sciences and other joint release of the circulation of the Blue Book pointed out that the 2011 China's E-commerce transaction scale increased by 45.8%, of which the network shopping transaction scale exceeded 750 billion yuan, an increase of 67.8%, accounting for social consumer goods retail total proportion reached 4.3%.

The Blue Book also predicts that this year China's online shopping market will trade more than Japan's, and overtake the US next year to become the world's first.

Qiping that, compared with traditional store sales, the electric business model really cuts the intermediate cost, improves the circulation efficiency, is advantageous to the producer and the consumer.

But China's e-commerce business in the rapid expansion of the same time, there are a series of problems. Qiping that "at present, the electric business industry has entered a phased development boundary", large-scale, large kinds of extensive growth mode has not met the requirements of the market. It is the reasonable development mode of the electric business industry to seek the transformation of the Electronic Business service and create the product differentiation and individuation.

In Qiping's view, the leader of China's electricity industry, Taobao, "because small and beautiful" is the market segment, seek the best example of differentiation development, and these mutual "pinch" enterprises blindly through the "price competition" to obtain short-term profits, may affect the entire electrical business industry's healthy development.