The vicious circle of "market" of Chinese electric Dealers

Absrtact: Recently, Gome online chairman Shangui first to the current situation of the electric dealers published "The Electric Business Eulogy" A article, the industry and the media widely concerned, although not excluding gome online to the possibility of this marketing, some of the content mentioned in the article or let people on the situation of the brutal electricity dealers

Recently, Gome Online chairman Shangui to the current status of the electric dealers published a "Eulogy" article, the industry and the media widely concerned, although not excluding gome online to the possibility of this marketing, some of the content mentioned in the article or let people have a certain understanding of the status of the electricity business, but also a lot of people began to the electric business industry future development concerns How to get out of the current situation and enter the benign development pattern is a general concern of the industry. The author read this article slightly some feelings, here to share to you, the improper place also hope that everyone in the industry to correct me.

The vicious circle of "market" of Chinese electric Dealers

In China, the electric business industry is like a big bazaar, the Netizen's shopping idea is like in the market to buy vegetables, comparing which is cheaper, which naturally contributed to the outbreak of price wars, traders want to sell more, it is cheaper to hawk to the outside, in order to operate a thin, more profit to improve sales, The end result is to sell 1000 items less than the normal price of 10 items, vendors are not even earning the wages of the labor force used to sell and give out flyers, and then return to the suppliers to offer concessions, hard prices, and suppliers are inseparable from the sales of a very substantial dealer, only reluctantly, So that some of the suppliers open Shop Direct, no longer buy the dealer's account, and then again low-priced Hawking, attract consumers. So the formation of a cycle, more and more sales, the price is lower, the profit is increasingly slim.

The idea conflict of domestic electric power business

Now, in the short term a penny of the truth in the domestic electrical business industry is basically unworkable, this has a direct relationship with the business philosophy of the electric business and the consumption concept of netizens: on the one hand, most of the electric dealers are now aware of the importance of the electrical business in the future, have to seize the electricity market and expand their operations, the main focus on development and layout , did not invest more energy in the operation, basically rely on a simple rough price war to do marketing; On the other hand, in the majority of netizens ' awareness, the online purchase of goods is the map of cheap, and not its convenience, which makes the brand value in the electricity quotient in no hierarchical embodiment, all kinds of goods are falling into a mixed bag of low-priced marketing.

Price war more capital recovery?

Those holding foreign capital to operate the enterprise is like money is not their own general, seems to be the capital is to win, as for how to operate later, that is to see the situation of competitors, the enemy moved me, the enemy does not move me, any one opponent's movements can cause the whole industry to follow the movement, and attract customers the biggest hot spot than the price promotion, So, the price of action began, prices war staged, all the platform into the circle, all the platform of all the merchants also into this cycle, the industry in this circle lost itself, only the hero of the burning money has not wavered. It seems that the fun of the war in this circle is much greater than delving into how to jump out of this cycle, how to profit as soon as possible, and how to buy back foreign capital.

Another reason for the price war

Compared with the foreign electric, the domestic Netizen's consumption idea becomes a system, is the operation again mature, the profit many foreign electricity merchant enters the domestic also to be puzzled. Foreigners fancy brand value, this concept can transition to the online, foreigners online purchase goods will not be too concerned about prices, as long as the price reasonable to produce the purchase behavior.

Domestic is different, many working-class people under pressure to survive, the purchase of goods will not be too much attention to the brand, as long as the price is cheap enough to OK, so most of the goods moved to the Internet is still targeted at the vast number of working-class, so you can see the price in Taobao but hundred international brands, even if the buyers know that 90% may be imitation goods, Still will be down this list, attract their only price. Not only imitation product price promotion, Brand is also engaged in sales promotion, to the price to attract people's attention, so that you can understand why the domestic electricity dealers know the price of labor and wealth, but also enjoy the staged. Of course, this is only one of the reasons, here is not to belittle the meaning of domestic consumers, is only the case.

Electric dealers have created the habit of Internet users ' consumption

The electricity quotient thinks enhances the user experience is realizes the electric quotient profit the important condition, therefore, the major electric operators and the platform of the merchants on the more than 10 years to spare no effort to focus on the user experience of the study, have to say that the electrical business in this point have done very well, free mailing, door-to-door, cod, free refunds, commodity probation, Various experiences, such as installment purchase, have really increased the customer's desire for purchase, and in the user experience is becoming more perfect, at the same time, the electric business in the practice of competitive prices found that all kinds of experience to do a good job is not better than to engage in a price war, only low prices can attract more consumers, thus, the price has become a measure of the basic standards of electricity, And the majority of netizens also enjoy in this process with many concessions, and to the current consumer habits have been formed, if which shop can not help to sell the postage goods, this is a miracle. Therefore, it can be said that China's electricity dealers have created the Chinese netizens consumption habits.

Finally, I would like to say that in the electricity industry in the fierce competition at the same time, consumers really get the benefits of it? Do not say the price war on the sale of goods after the discount, also do not say that some of the shoddy goods launched by businesses, just can not receive goods in time logistics let people hurt.

In China, either the electricity trader or the price war can be equated with the price war. Yes, the development of the electric business needs time, the development of the electrical business will need time to build the various links, the domestic electric operators to copy the concept of foreign electric power is not feasible, domestic consumer groups are not mature. And what people can't see is that if the electric business is phased development, now this stage can only be the stage of price spell? Maybe soon, someone will break the deadlock.