"The strongest price war in history"

by Jingdong Mall triggered by the home appliances category Electronic mall price war set off waves, Gome, suning and other large electronic merchants to join the "war", Dangdang, Xun network is not willing to. "The strongest price war in history"!

"Everybody electricity three years 0 gross profit", Jingdong Mall CEO Liu Language not astonishing die endlessly. He 14th issued a micro-blog declaration of War, now, jingdong all everyone electricity than gome, suning chain cheaper than at least 10%. Then announced, today, Jingdong all big home appliances prices than suning line cheaper! If Su Ning dares to sell 1 yuan, the price of Jing Dong must be 0 yuan!

Many electric business peers have questioned Liu deliberately hype. But the objective result is, the high profile shows strong Liu let Suning, Gome very hurt. Suning and Gome both fell yesterday. Suning issued a notice in the afternoon, the plan in the next 3 months to increase the company's shares, the amount of not more than 1 billion yuan. Suning Appliance (002024, stock bar) so the stock price pulled up, to 6.47 yuan trading close.

High-profile show with Heart

On why the Beijing-east of the High-profile show, this reporter after investigation to understand that Jing Dong after June, July electric business war, because the activity is not strong, a large backlog of goods, including everyone electricity. Shout out three years big home appliances 0 gross margin, in addition to continue to make gimmicks, another very important purpose is to quickly ship, withdraw funds.

Data show that in 2011, the net loss amounted to 1.3 billion yuan, gross profit margin of only 5.5%, in 2004, since the market has continued to increase the performance of suning appliances, the first half of this year net profit also fell nearly 30%.

The performance report explains that the main factor that drags the overall performance is the investment in E-commerce. Set up the bowser network and Gome Online mall two electric platform of Gome, the first half of the net profit is a loss.

Why do the electricity dealers still enjoy the loss? "Attract eyeballs!" "An electric dealer's executive told reporters that if they don't make a concept, they don't have a fight. "Taobao and billion (EBay) competition for Consumer-to-consumer market when the war of words, for Taobao saved a lot of advertising fees, Lei and Zhou each other attack also let consumers of their products millet mobile phone and 360 phones impressive, and other Internet companies are countless words of war. ”

BEIJING-East price war is intended for IPO

Jingdong Mall Liu one months ago on the micro-blog revealed: "The third to fourth quarter of this year will set off the largest, most tragic, the most comprehensive price war!" And Jingdong will continue to lead the price war! He also said that from the same day, if the company manager who is responsible for the product price is not the lowest, then "class" leave.

Industry analysis, the Beijing East provoked price war, in order to rob an IPO index. According to Beijing media reports, a business expert said, provoked "more fierce version" price war, as soon as possible to return to investors, may be Liu for Jingdong Mall for the next round of financing the pieces placed. Moreover, the move can also alleviate the perennial price war profits drop, resulting in Jingdong mall valuation reduced.

In fact, the current listing is not the best time because of the global economic weakness. Jingdong Mall only through the price war as soon as possible to expand market share, in order to add to the next year's IPO heavier weight. Data show that this May, there has been news that Jingdong Mall is preparing for the listing, is expected to be listed as early as September. But then there is news that Jingdong Mall decided to postpone the listing plan to the first half of next year.

or touch the legal red Line

"The long-term consequences of vicious price competition will be conductive to the entire industrial chain of manufacturing industry, the quality of products will fall or even pressure across the entire production system." "Ecapital Capital CEO ran thinks so.

Xun Net CEO Bu Guangzi that, Jing Dong and suning easy to buy the same products are very few, consumers simply can not compare; the so-called price war is actually the Beijing-east and Suning in the capital market each other to attack each other can not successfully financing behavior.

Beijing Handro law firm lawyer Zhaohu in an interview with the newspaper, said the two home appliances merchant price war may be suspected of breaking the law.

"The price war involved the provision of article 14th of the Price Act, which is to trick consumers or other operators into trading with false or misleading price means." Zhaohu points out, "if two companies formed a tacit understanding, only through the influence of micro-blogging price war propaganda, but huaquanxiutui not practice to deceive consumers, mislead, entice consumers to spend, but also may involve price law under the price of fraud problem." ”