The price war to pinch the battle electric giant wants the market to have the speech right

Editor's note: Recent domestic major electric power companies in order to win in the "two-Day War" in the eyes of consumers, the extraordinary strokes, gimmicks, scratching the hearts of consumers Itch, the electric business giants between the "price war" or "fight", the intention is not only in the fierce competition in the electricity market to obtain the necessary market share of survival, To realize the purpose of making money, the more important thing is to contend for the power of new business.

The purpose of the price war is to seize the dominant and the right of discourse

Industry experts said that the current price war is a marketing gimmick, but overall, the future prospects of the electric business is optimistic, but also the general trend

Newspaper reporter Xia

Some time ago by the uproar of the Beijing-east and Su Ning, gome three power business giant price war finally became "a farce" and ended, but their price war not only attracted the attention of consumers, but also attract regulatory intervention. Thus, the use of "price" tactics around why the big power companies are so dramatic has become a matter of concern.

In the view of industry experts, they are doing the purpose of gimmick marketing, the purpose is to seize the power of the field of discourse and the right to dominate.

Price war for gimmick marketing

In fact, with the rapid development of the Internet, e-commerce after so many years of development has been known to many consumers, so, in different areas, there will be business-to-business, such as E-commerce business enterprises appear. and focus on the listed or not listed electric business enterprises, their scenery behind is still facing the pressure of survival.

From 1999 to now, China's electronic commerce after more than 10 years of development, from the initial stage of germination into the depth of the development of various industries infiltration stage. Countless traditional enterprises and funds into the field of electronic commerce, making the world of E-commerce has become more colorful. In the face of such a huge market, whether the electricity business is profitable has been their most embarrassing thing. Because, so far, few electric dealers can make a profit.

To count our unlisted and listed electric companies, their performance is not ideal.

When it comes to electricity quotient, we are most familiar with the leading role of the price war in the former period, according to the information, Jingdong Mall in the first half of this year's sales growth exceeded 120%,GMV (turnover) year-on-year growth of 161%. Among them, the annual growth rate of 226%, books and audio-visual growth over 300%, clothing, shoes and hats turnover of June more than 500 million yuan, but the company's net profit is negative.

In addition, the IPO is not the status of the goods are not very ideal, there are reports that since July, where the customer in the off-season, the reduction of the July or August network promotion and offline promotion costs. Nearly two months of advertising cuts, so that every passenger flow fell nearly half. "From where the IPO has been canceled, where customer sales began to decline, the inventory of high pressure, advertising was approved, quality unqualified, the above phenomenon is sufficient to show that at present, all customers have entered the downward channel." "Some analysts said.

The current situation is even more embarrassing for Macquarie, which has been listed as the first stock of the company. The company's share price was less than 1 dollars in a row, or threatened to retreat from the market, and its second-quarter results were compounded by a net loss of $4.9 million.

From the above companies, their reputation and size in the field of electrical business is called the industry leader, but they are still not profitable, so the price war to attract consumers to become their killer. 100 yuan to buy 3 pieces, 59 yuan snapped up, such as eye-catching words appear in the home page of the major electric dealers, not to say whether consumers really can be affordable, but overall, they are mostly lose money to make a yell, the price may not really so low.

In this respect, CIC consultant IT industry researcher Li Fangting, said in an interview with the Securities daily, that at present, China's electrical business industry in the barbaric, high-speed development period, the price war is still the major electric enterprises long-term use of competitive means, the electric business industry low profit level in the short term will not change. After many price wars, up to 815 of the peak price war, consumer demand has been a lot of overdraft, rational consumption awareness gradually increased, the electric business enterprise price war stimulating effect began to gradually reduce, the electricity quotient should gradually seek other than the price of other means of competition.

Electricity quotient is the trend of commercial development

In fact, the current electricity dealers launched a price war is not unfamiliar to netizens. Because, that is because Gome, suning price war just defeated the department store, the birth of the supermarket. Later, Jingdong mall price war and stimulate the United States, Suning, creating online sales of the electric business model.

In the face of busy jobs and little time to go shopping in supermarkets, most of them put their shopping channels online. And the domestic large supermarkets under the line also face rent, artificial pressure. The birth of a shop, but also the offline supermarket moved to the line, for those busy people to provide convenience. In fact, as the competition in the business-to-business arena tends to be temporary, the business-to-business sector is moving toward structural optimization and business deep digging. In general, the future development trend of the electric business will not change.

"From the market competition pattern, with the long-term sustainability of the price war, the industry will gradually form a few previous electric dealers relatively stable occupy a large number of market share of the pattern, small and medium-sized electric operators in the bloody price war gradually eliminated." At the same time, certain characteristics, individual electrical quotient or will survive. "said Li Fangting, the IT industry researcher at CIC.

The fact is also proving that individual electric dealers are growing fast and are favored by capital.

Although we understand that most of the current electricity dealers are the money of the investors, and in the current electric dealers encounter "capital of winter" in the context of the big environment can be very difficult to finance. Liquor business accounted for 80% of the total business of liquor vertical network Jiuxian NET in the "so-called electric business capital Winter" successfully into the enterprise development of the third venture capital, the Beijing Wo-Yan Capital Management Center, such as a number of funds jointly to Jiuxian network investment 200 million yuan. Coincidentally, another wine-type electric business wine network in September also won a sum of 100 million yuan venture capital.

In the electric business and VC/PE in the "Cold winter" season, liquor dealers can get the pursuit of capital, can be called the winter blooming beautiful flowers.

For the future of liquor dealers, CIC consultant IT industry researcher Li Fangting said, at present our country liquor electric business development is still relatively slow, its sales not to the line channel sales One-tenth, faced with the lack of professional talent, supply instability, logistics construction, the line under the strong exclusion of channel operators and so on. However, e-commerce with its broad sales channels, relatively low prices, it will lead to China's wine industry sales changes, E-commerce has become the future development trend, is the main driving force for the transformation of various industrial channels in China. The future of China's alcoholic drinks will take the rapid development of E-commerce Express.