The strongest price war in history

Electric Dealer "Three Kingdoms Kill" in the domestic electricity trader set off "the strongest price war in history", however, after the parties died down, consumers suddenly wake up, "shady", "show" the limelight actually overshadowed the "competition" itself, the so-called "history of the most brutal home appliances price war", the commodity decline far less than high-level "saliva war", They are a few people's hearts and hearts of the enterprise crisis Public relations a practical lesson

Since August 14 Jingdong Mall CEO Liu in micro-blog High-profile launch price war has been more than two weeks, once the smoke of the Beijing-East Suning Gome price fighting is to earn enough eyeballs, but the electric dealer "three kill" and did not bring consumers looking forward to the surprise.

In fact, Jingdong Mall and Suning appliances (002024, shares bar), Gome has long been grudges, this time in Suning appliance to send debt financing 8 billion Yuan Eve, Liu sudden surprise attack industry Big Boss is not just accidental whim.

Liu

"Barefoot, not afraid of shoes."

Let Liu unexpectedly is, oneself launched this price war did not "enemy" knocked down, but by the public read as "Big cheat" PR show.

Speaking of Liu, it is not afraid to wear shoes barefoot. Reviewing the development course of Jingdong, Liu with his unique "preemptive" and "Barefoot not afraid of shoes," the struggle strategy, to small broad, master the initiative in the Business War, with Suning easy to buy, Gome, Taobao and other electric commercial, he repeatedly on Weibo bluster, planning a very influential event marketing. One of the "three major battles" is the most critical, respectively, the 2009 and the traditional distributor of the 3C price war, the end of 2010 and when the book War, 2012 and Gome suning Big home appliances war. And this third war, in fact, is Liu premeditated 4 years long.

Born in Jiangsu Suqian Liu, with the Nanjing Suning Electric Appliance Chairman Jindong can be regarded as a fellow. Although the two have a feeling of mutual affection, but each other know that a tough battle between the two companies is inevitable.

Liu once said: "The Near East brother is one of my respected entrepreneurs, for many years, I have been avoiding direct price war against Suning." The same fellow, Fry what too urgent? But lately you've been ... We can be friends in private, but price wars must be fought. ”

According to an insider, Jingdong Mall, 4 years ago when the mall online big home appliances, the home appliance chain Gome two big giants as a benchmark. With the power of electronic commerce to pull out the city, the east will sooner or later with the United States Su Ning to start a positive war.

Everyone electricity this position has been regarded as the traditional territory of the Gome Suning, for many years no one dared to get involved. Skyworth an executive said: "Home appliances chain of people, Wong Kwong Yu, Jindong and other people are absolutely business wizards, when the Beijing-East layout of the electricity, they naturally can not sit idly by." On the side of the couch, does anyone snore or sleep? ”

Domineering about Gome, suning "Three Kingdoms Kill"

Just in the 13th of this month, Suning issued a financing announcement soon after, Liu to the outside world issued an intriguing micro-blog: "Tonight, inexplicable excitement." This excitement in the next day evolved into a more sensational, more vigorous move to suning appliances, Gome micro-bo about the shelf.

"From today, jingdong all the big appliances to ensure that more than Gome, suning chain cheaper than 10%, at the same time in the country to recruit 5,000 U.S. and Soviet price intelligence agents, 2 per shop, if less than 10%, Beijing East immediately cut prices or spot coupons." Liu on its microblog for the "8 15" electric business war beat the drums.

To his surprise, Suning immediately challenged, Suning easy to buy executive Vice President Li Bin Response said: "Suning easy to buy, including home appliances, all product prices must be lower than Jingdong, any netizen found that the price of suning is higher than the east, we will immediately adjust prices, and to give the feedback has been bought twice times the difference compensation. and Gome Online mall is "never so cheap" marketing slogan, the company said that the United States is from the price of the dead heap climbed out of the money is completely out of the question, to the Jingdong Mall provoked the price war not only to fight in the end, but also to end up to kill Jingdong.

Kill Kyung-dong? Liu May sneer at this, he said to the media from his resignation of foreign companies, carrying 20,000 yuan to Beijing Zhongguancun venture since, never thought to put on "leather shoes." In the challenge of Gome, Suning, Jingdong Mall set up a "dozen SU headquarters", by Liu personally in command. August 15 day, Liu to low price as a weapon, to micro-Bo for the mouthpiece, achieved a phased victory. "Access to PV number more than 6 18 day 80%, a morning influx of 17.6 million independent UV, far beyond our expectations, resulting in our inventory, the goods were quickly robbed." At the same time, Suning site has a two-hour "paralysis", subscribers can not access.

But only a phased victory, because the war has been burned to the line, and Liu's original intention is only to challenge the real shop, the United States, "from 9 o'clock in the morning tomorrow, Jingdong Mall all the big home appliances prices than Suning line cheaper!" And no bottom line of cheap, if Suning dare to sell 1 yuan, that jingdong price must be 0 yuan! "Do not know Liu say this, is not be dazzled the mind," the price war on the line, to Jingdong and no advantage. The most important thing is that Liu was going to play the real store under the Su Ning Line high gross margin, but hit the line, from this moment, the advantages of Jingdong is less, others have a huge line of profit, with a little price war is not afraid to play. Senior Internet analyst Bo said.

"Backyard"?

Liu in Weibo announced that the BoE will recruit 5,000 gome, suning Price intelligence agents, 2 per shop stationed. Any customer in Gome, Suning buy big home appliances, take out the mobile phone with the Jingdong client parity, if found less than 10%, after the price of intelligence agents on-site verification, jingdong immediately cut prices or on-site coupons to ensure a cheap 10%.

It is said that these intelligence officers wearing uniform clothing, behind the eye-catching "Jingdong Price intelligence officer" words, sounded very exciting, and easy to believe. Liu at this time then continue to earn foot in micro-blog yell: August 20, the first East Price intelligence agents stationed in Suning Lenovo Bridge shop, Hope Su ning do not obstruct! But this is not the case in reality, and Liu in the mouth is hard to trace.

"It's just a show. Gome Online Mall related to the responsible person told reporters, Gome Online Mall of the big home appliances prices have been the lowest, in contrast, Jingdong mall prices do not have any advantages, the presence of the price of intelligence agents do not have any significance.

Want to buy out of the goods, some goods do not reduce prices instead of price increases, electricity prices war is already doubtful, unsatisfactory. More disappointing is that many netizens recently found their Jingdong account suddenly unable to log in, passwords and binding mailboxes are changed, and many accounts of the Jingdong voucher has been consumed by people.

And with Liu surprisingly high-profile formation of a strong contrast, jingdong investment side is surprisingly silent. The "Lilac will _lilacclub," the microblog released a message, "according to reliable information, Jingdong round a big PE has withdrawn investment, only to take back the principal." Confirmation。 Beijing East and the Soviet Union and the United States war, the backyard can not "fire" ah. ”

After August 17, Liu obviously low-key, so far did not send a price war on the micro-blog, which let the vast number of consumers in the sigh of the Beijing-east "big cheat" at the same time, also speculation Jingdong "backyard" is really "fire"?

Jindong

"War" is just "episode".

"The essence of the electric business platform is also business, not to make money of the electric business platform is unthinkable." Su Ning, chairman of Jindong said. Compared to Liu's "put malicious words", August 27 Jindong accepted the "21st Century Economic Report" in the interview, Liu launched the Electric Business War, is just a necessary episode in the development process of suning. So by the vast number of consumers jokingly "shoes also to challenge", it can be seen that Su Ning to Jingdong is "and care about" the tangle.

Suningyo second wave of price war

Compared to Suning's previous low-key attitude, Suning easy to buy vice President Li Bin took out "dead knock" in the end posture, High-profile Challenge: "The battle has begun!" Not who said it was over! "And for the second wave of price war. "The upcoming semester, computers, mobile phones, digital will usher in a full season!" Li Bin's subsequent microblog also identified the focus of the second wave of price wars. In the face of Suning easy to buy on 27th launched the computer, mobile phone, digital and other 3 C product price reverse attack, Jingdong Mall's "flat-screen TV, audio and video low-priced wave" apparently avoided the fire.

Some people in the industry said that as a field bogey horse price war, the participants are expected to use their own weak horse to match the strong horse. Suning last year's performance report showed that total sales of 67.26 billion yuan, including black home appliances, white appliances, air-conditioning and other large household appliances sales reached 42.52 billion yuan, accounted for more than 60%. And Jingdong mainly rely on computers and other 3 C products, everyone's share of electricity is not too big. The strength distribution of the two is obvious.

Suning take 3C products, this strokes, and give a hand, let Liu no-show this second wave price war.

Judging from the responses of the warring parties, the second round of price wars seems to be only a theoretical one.

"The soldiers have not moved the fodder first"

Since 2010, Suning was officially on the line, Suning actually began to enter a new era of transformation, the direction is to be through the "online under" the integration, to achieve the optimal supply chain efficiency. and whether online or offline, more is the backstage supply chain construction, including logistics system, IT systems and data flow. Since the 2004 IPO, Suning has invested heavily in supply chain and logistics system construction, so far it still needs big investment. August 13, Suning Electric Appliance Bulletin said, to the public to issue a scale of not more than 8 billion yuan (including 8 billion yuan) of corporate bonds, the main destination of funds raised is the logistics operation system innovation and optimization.

"Whether it is retail, or electric business platform, to scale development, it must have a strong background system." "This is the reason why Jindong will think Jingdong and Su ning" is not a magnitude of the reason, Jingdong only a few years time, its logistics and supply chain has not fully formed.

Thus, in Jindong's view, the so-called "electric business war", in fact, there is no practical significance, "the troops have not arrived, the first fodder, no fodder, no preparation, how the war?" ”

Handepeng

Jing Dong can't afford to play

The heart is unwilling and gome.

"Beijing East sells one yuan, Gome sells nine cents five!" "Gome Electric Online mall general manager Handepeng in micro-blog on the Liu of the Covenant war quickly made a tough stance."

Then Handepeng to Jingdong Mall issued a "provocation": "The Future is Gome and Suning price war, only Gome and Su Ning can afford a price war, Jingdong participation not up, he can participate?" ”

"Gome has been playing a price war and others are more involved in gimmicks," Handepeng said in a media interview. If Jingdong wants to play, always play, do not stop, this is the price war. If it's only a two or three-day stop, it's a promotion, a gimmick. And said that the price war with Beijing east is "amateur", as a price war "professional player" Gome welcomed the price war, this is a process of enterprise's fittest.

"Play" the most serious

In response to the sudden price war, Gome vice President Yang said that enterprises in the industry generally depressed, faced with difficult challenges, the urgency of the mood can be understood, but can not be rude. Gome does not shy away from any form of price war, starting from August 15 9 o'clock, gome Online shopping mall line of goods prices will be 5% lower than Jingdong Mall, and from August 17 onwards, the United States more than 1700 stores will remain online next price. The integrity of an enterprise, it depends on the company's words and deeds are consistent.

According to a Amoy comparison of statistics, gome, although not "shout" the most ferocious, but is "play" the most serious. Gome's price cuts were the biggest in a cost war that didn't have gome. According to the parity net statistics, gome in the electricity price war on the first day of the commodity ratio reached 16.6%, in the top of the electricity quotient.

August 23, Gome President Wang Junzhou in an interview that Jingdong Mall has been emphasizing the cost advantage of the electricity quotient, the outside world also generally think "online is certainly cheaper than offline", but this conclusion is wrong. Wang Junzhou For example, for example, in the procurement costs, to Gome, Su Ning as the representative of the offline entity store annual household electrical appliances procurement scale of hundreds of billions of yuan, and Beijing east only about 20 billion yuan, the purchase size determines the offline entity shop under the average purchase cost less than the electricity quotient 4%. In the logistics cost, the line is also about 6%, offline physical store distribution cost is only 0.6%. Wang Junzhou revealed that, according to Gome, suning years of performance reports show that their net profit margin of 4% or so, while the net interest rate of the electricity dealer is about 8%, the long-term loss of the electric business, means that the Beijing-east of the price war may not be able to go down.

Gome to establish a guild

For many of the phenomenon of the electric business industry, Handepeng said: "There is no real industry leader in the business of business, there is no one to set standards for the electric business industry, the rules, I hope that gome can stand up for the industry to set this standard." ”

Some media reports, the United States in the price war so serious attitude, should be the top of the gome from the prison in the behest of Huang Guangyu. And Handepeng about Gome must carry out the industry reshuffle, purify the market position, also confirmed this point.

Price wars make consumers "very hurt"

Liu later said he didn't think Su Ning will challenge. In fact, Su Ning did not really challenge. And from the second wave of price war Su Ning and Gome's actual action, two are pondering the use of the Beijing-East war to provide this opportunity, to a golden week of the big promotion, reversing the first half of the entity store customers scarce sales weak situation.

There may be no bottom line on Weibo, but in real life prices have a bottom line. The real damage to the price war may be the reputation of the industry and the many consumers who are looking to benefit from a price war.

Ordinary people have a misunderstanding, that price war on consumers is a great advantage. But in fact the vicious price war will seriously hurt the interests of consumers. "If manufacturers in the price war without profits, or even loss management, Chong as cannon fodder, manufacturers are unlikely to provide follow-up services, but also not to consumers with continuous innovation." Said Ma Yun, chairman of Alibaba Group's board of directors.

China's e-commerce industry is a fully competitive industry, because of this, in the last more than 10 years, it has become one of the fastest growing industries in China. According to Statistics, 2011, China All online transactions over 6 trillion yuan, personal shopping more than 800 billion yuan, the growth rate reached more than 60%. At the same time of rapid development, due to low threshold, lax rules, a lot of very confusing conditions abound, so today we see the electric business giant Melee "fooled" consumers phenomenon.

In fact, in developed countries, the rapid development of the electrical business, we are familiar with the Amazon, the world's first major electric dealers, have done very successful. But if you investigate the growth experience, you will find that the Amazon's growth process can not see the "price war" three words. Therefore, abandon the price war simple thinking, not only is the price level, but also has the service level, the technical aspect and so on competition, such competitive advantage is comprehensive.