The "seven-punch" of the electric business bosses

In front of the words: Price war is like seven boxing: there is yin and yang in the human body, wood fire and fire soil five elements; The electric business competition has the merchant and the consumer, the product quality, the Post-sale service, the brand recognition, the express strategy as well as the small and medium electric business future-if continues to drop, is bound like seven punches general, one practice seven

The "seven-punch" of the electric business bosses

Who can imagine, more than 10 years ago that unusually tragic home appliance price war, how to continue to write online? In the vivid memory of the bloody battle, countless once we know the appliance brand suddenly fell, countless dealers were forced to close, home appliances industry suffered unprecedented low profit era, the company's innovative passion to the lowest. After the seasons, another seemingly more ferocious price war erupted in the network, while the protagonist is still home appliances.

The difference is that the chips from tens of millions of, hundreds of millions of years ago into the billions of or even hundreds of billions, the network era of rapid consumption capacity is like a speed gear, speeding up the electric business between the enemy and the speed of fighting. But in such a weeding market, many companies are not afford to "boasted" the way suspected of deception, so the price of a bloody battle is gradually evolved into a lower price of "Haikou war." Despite the progress of science and technology, the mode of progress today, zhongguancun in the mentality of the hawker is still not been "upgraded."

The pleasure of a siege in a price war

If many years ago, the price of the air conditioner spread from each other to "inventory digestion" of the original motives, then a few years later, this time in the network of the price war, is clearly from the collective siege of a faction. Perhaps not deliberately for it, but "Jing Dong 6.18 Live" news or spread, and eventually become the most "famous" in the domestic internet seven electric dealers launched the bloodiest fight of the "decisive day."

"Price Butcher" Beijing east on the birthday day, received from its opponents all kinds of "promotional gifts", they use a more drastic discount measures against this adversary. Opponents on stage, in order to cope with the "Normandy Great War", Amazon launched the "June Bargain King" slogan High-profile Sniper, no matter from the promotional style or the way the bargain is very similar to Jingdong; Cat Electric City announced in the previous investment of 200 million yuan subsidy on the basis of the merchant again to subsidize consumer 100 million yuan Suning easy to purchase the "whole network parity" strategy, as long as in a certain period of time to buy than Suning easy purchase price of the same products, suning easy to purchase will be implemented difference compensation. Now, the Olympic Games in full swing, easy to hang on the homepage of the "Easy news for the Olympic Games" slogan, Gome Online Mall directly to the "Olympic Games" changed to "Olympic benefits" ...

Uncharacteristically's discount intensity, in many people's view is a bit "too much for Jingdong." BEIJING-East, under great pressure, began trying to capture the commanding heights with another, more savage discount. And it is said that without the bottom line, let the Jingdong capital chain too nervous, eventually had to raise the impact of the IPO margin.

But it didn't take long before the British wind blew up the London Olympics, and another seemingly fierce price war tried to rekindle it again. Electric dealers around the Olympic recount take turns to launch a variety of theme marketing activities, the rising price war trend so that the Olympic event has become the electricity dealers do not see the smoke of the "price wars."

At the end of the Olympics, when people thought that the electric bosses would take a breather, Jingdong CEO Liu A "jingdong mall all the electricity will be in the next three years to maintain 0 gross margin", "to ensure that more than Gome, suning chain cheaper than at least 10%" micro Bo let appear to be extinguished the flames of war to burn more prosperous. However, the "challenge book" quickly received a response, suning Tesco through its micro-blog announced that "including home appliances, all products, such as the price must be lower than Jingdong," Gome Online mall also said that "Gome immediately online shopping mall on the whole line of goods prices will be lower than Jingdong 5%".

Although the unprecedented "Covenant war" has received unprecedented attention since August 15, but in fact, people do not see an unprecedented size of the price, not only the situation is not uncommon, and individual products in the night before the "Covenant war" quietly raised prices-perhaps it is not a " "Three Kingdoms Kill", but a "Three Kingdoms show" marketing strategy?

Admittedly, the move has attracted a lot of media and consumer involvement. and the substantial store many suning, Gome, more channels than the advantages of the Jing Dong obviously have the capital with others dozen "price war", but no matter who wins who negative, all make the home appliance industry is very injured. Because in China's current home appliance market system, the market position of the store and the manufacturer is not equal, the lack of channel manufacturers are often unable to counter the price pressure of large stores, if the store is determined to reduce prices, then manufacturers can only through a variety of means to its "constraints." Therefore, shortly after the "Battle of the Covenant", Jingdong CEO Liu admitted that 1/3 suppliers did not support the price war.

Price war, how much did they lose?

To June 18 Jingdong mall launched computer digital 50 percent, home appliances full seconds to kill 48 percent, daily necessities let 50 million of the "Normandy Grand War" promotional activities to see, a single day turnover of up to 1.016 billion, only a compromise of 80 percent discount, Jingdong at least 200 million profit from the date of the passing. Faced with such a raspberry fee, no strong financial support, who dares to hit the price war easily?

Not only Jingdong, including Amazon, Cat, Suning easy to buy, Gome Online Mall, Dangdang, they are undoubtedly during the Olympic Games released a variety of great discount activities, and there is a "climbing low" trend. Even the relatively low "financial" Dangdang, has recently increased the "Summer price war", and even threw a daily minimum to 10 percent of the wild discount. The price war between the electric dealers has evolved into the PK between the "capital chain" behind.

But we are all aware of the problem: once the climax of the price war, users will often go home to find their own mom, as usual normal marketing strategy for people almost no impact, even during the price war due to low profit exposure of the product or service issues will further affect the normal sales. So when a large number of similar goods appear, who can make product quality, after-sales service, logistics and transportation, such as more excellent is the key, blindly cut prices in addition to be able to create a prosperous market, but also to lower prices behind the query sound more intense. If the price reduction strategy can not only improve the user's viscosity, but accelerate the loss of consumers, this situation I am afraid is not want to see.

Lower price destroy electric business ecology more prominent deception mentality of some electric dealers

The price war between large electric dealers is fatal to the inherent ecological impact of electric dealers. According to the statistics of the iris consultation, although the price war has greatly increased the concentration of the online shopping market, in addition to the top ten of the electricity business enterprises, the remaining market share of the electricity dealers only about 5%. In the second quarter of the domestic consumer market sales volume of 89.35 billion yuan as an example, the remaining hundreds of appliances can only share the market only 4.4675 billion yuan. The ecological balance was destroyed and the market showed another fully deformed sharp angle. The weak are speeding to death, and the strong are encroaching on the market.

Perhaps the face of such a large "loss of interest rate", some once roared the price to the bottom of the electricity quotient, but appeared a boasted appearance. In the three years after the bloody battle, the development and Reform Commission for Beijing East, Gome, suning price war investigation, and finally found and confirmed Jingdong mall in a small number of large household electrical appliances did not realize the commitment to the consumer zero margin.

On the other hand, as a bloody battle in the spoiler, its announced its own initiative to collect "Jingdong, Gome, suning three home appliances business price comparison, and show that there is ' first price increase price ' behavior" of the information there are some data false problem. The NDRC sent a working group to make the data appropriate. Although a Amoy net finally admits that the data has the wrong place, but its data lets the user to these several websites misunderstanding has been spread.

To bear the market diversification of the vertical electricity dealers, the brunt of the brutal blow. The hard-earned market share is rapidly disappearing in the price wars, and more and more users are moving from these to larger, cheaper websites. And this future, is really good?

In fact, the huge volume of trading is not let the electric business big guy ushered in his own spring, businesses can not get enough attractive profits, users can not experience satisfactory service, product quality has not been significantly improved, even decreased after-sales service, the brand has not been able to obtain market recognition, express the shortcomings have not been properly resolved, small and medium-sized electric operators encounter survival dilemma- -Such a seven-injury fist, whether it is Jingdong, the cat, excellent Amazon, Suning easy to buy or Gome online mall, who also can not practice.

The price is caught by people's eyeballs, and the need to improve the user's viscosity to seize the heart of people. Low-price strategy is only the original stage of competition, businesses and consumers hurt each other is not the power of the businessmen looking for the way out. The Chinese electric business bosses should not be the price of each other, sing each other, but need to carry out a more socialized electric business model, is the so-called "social relations, derivative users, user-generated traffic, traffic support electric quotient", how the temptation of advertising, can not withstand the "strong relationship" between people based on marketing strategy. In the plagiarism of China's internet industry, when the more social meaning of the "Amoy Lake", "Mushroom Street", "Beautiful said" the way has been the beginning of the show, as the internal force is still in the cultivation of "seven punch" big guy, what are you waiting for?