The rapid leap in electricity business is forcing traditional retailing into the online price war

Absrtact: The rapid leap of electric power is forcing traditional retail to get involved in the network price war. Big run Hair Entity store in the past two years has been maintained the first share of the country, but the line of the Internet shop Flying Cattle network due to the lack of flow, become the chairman of the run and Fly Cattle Network executive Director Huangmingtong most

The rapid leapfrogging of electric dealers is forcing traditional retailing into a cyber-price war. Big run Hair Entity store in the past two years has maintained the first share of the country, but the line of the Internet store Flying cattle network due to the lack of flow, become the chairman of the big run and Fly Cattle Network executive Director Huangmingtong the most headache problem. Recently Huangmingtong in 2014, the Joint Business Network conference and China's Retail Development Summit forum, frankly, had been the traditional retailers despise the price war, now also become the Flying cattle network drainage strategy.

Huangmingtong said, engaged in the entity shop for nearly 30 years, he never considered the drainage problem, but into the electricity business, traffic has become the primary problem of life and death. Last week, the Flying cattle network has been with the competitor 1th shop close to hand-to-hand combat, launched a mask price war, with a low cost to accumulate a lot of popularity.

"The first week of the big run opens the shop to have one hundred thousand or two hundred thousand customers to come, and the flying ox net even do a lot of advertisement, still have the consumer does not know it." Huangmingtong said, the drainage is easier under the line, do a strong promotional activities, consumers will come to the door. Online even if the free delivery of goods, but also to spend money advertising to inform consumers. "So it's not like making a channel, it's more like branding." The popularity, the visit quantity becomes the Enterprise survival key. ”

After being forced to join the business model of burning money, the Huangminggao end is also trying to hitchhike to make the drainage more efficient. April 9, shop 1th launched a "Face project" name of the mask to promote activities. RT-Fat first step, starting from April 5 in East China entity stores and flying cattle network to carry out large-scale mask promotional activities, discounts up to 50 percent. Shop 1th in the first day before the start of the big-run hair mask sales have exceeded 3 million yuan.

"The result is very magical, after this price war, the flying cattle net in search engine keyword rank suddenly broke into the top five." We can get a bit closer to the opponent as far as possible, and we'll have a higher position on the search. "Huangmingtong said.

In addition, the Flying cattle network is also ready to improve traffic by entering the brand area of the navigation website. "The location of the network shopping brand area is basically a few big electric dealer buys, the cost is also very high, but we still want to buy." Because this area's customer conversion rate can reach 10%, is a very good drainage channel. "Huangmingtong said.

Although the price war is the effective way of gathering popularity, but in Huangmingtong view, this is still inseparable from the business strength. "The low price strategy of flying cattle Network is based on the advantage of large-scale centralized purchasing, which can guarantee the quality at low price." Whether it is a physical store or a website, they are like a magnetic field, the attractiveness of how strong, the flow will be how big. Therefore, we must cultivate the attraction, including the design, the layout, the commodity price and the service, must maintain certain superiority and the competition ability, enhances the customer experience, the flow will be endless. ”