The worst electricity price war in history: traditional giant alligator pk pure electric Dealer

(Source: Southern Metropolis Daily Network)

"Round Table guests"

Gome (Weibo) online mall general manager Handepeng

Li Bin, Executive vice president of Suning and Tesco

Tan Yu, general manager of Tian-Cat electrical City

New seven days electrical network CEO left Yingjie

Jingdong Mall in charge

A stone stirred thousands of layers of waves, gome and suning in the field of electric power, triggering the Beijing-east, the cat and other electric giants launched the history of the most fierce price war.

The cat announced an investment of 200 million yuan to start a promotional campaign throughout the summer, Jing Dong took out 500 million yuan on home appliance products to promote, suning easy to purchase 1 billion supply price reduction 30%, the latest join the Battle of the Xun network will be combined Tencent investment 500 million yuan concessions and marketing resources to 3C digital and electrical goods, The total amount of investment in each household has exceeded 2 billion. (Source: Southern Metropolis Daily Network)

In full swing of the situation, home appliances enterprises, electricity dealers, consumers how to pull the balance between the three? Why is the electric business enterprise always willing to pay a loss to yell, empty pockets to win the consumer's "heart"? If the core value of E-commerce lies in the cost of the entire supply chain savings, the electric business enterprise saw the surface price cost, is the time and service cost neglected?

Confrontation 1

Logistics distribution

Suning Gome on the line, in the supply chain, logistics distribution, after-sale network, etc. have natural advantages, but the Beijing-east and other electric giants also make great strides to establish their own logistics system, the gap between the two especially in the one or two-line city is getting smaller.

Gome Online Mall general manager Handepeng:

For many pure electric business enterprises, mostly rely on third-party logistics to achieve distribution. Small goods can achieve third-party express delivery of the country, and bulky goods, even if the logistics warehousing, it is not possible to achieve localized logistics distribution within a short time.

Home Appliance Network Market Competition threshold is the highest in the electric business industry, the need to rely on a strong supply chain advantages and cover the country's localized logistics advantages, air-conditioning, refrigerators, color TV, washing machines and so on everyone must have localized logistics to form sales scale. Gome Online Mall currently has the country's largest localized logistics distribution network, in nearly 200 major cities in the country has an independent large household appliances storage, in the country above the county-level market for bulky goods to achieve localized logistics distribution, this is a pure electricity business enterprises rely on investment also difficult in 10 years to achieve.

Gome (micro-BO) development in 25 actually also paved a gold logistics network, in Guangzhou, Shanghai, Beijing have super large-scale modern logistics warehousing base.

Li Bin, Executive vice president of Suning Tesco:

Suning easy to purchase and offline share supply chain, logistics, after the sale of the platform, do not need to start from zero large-scale investment, the electric Business enterprise Self-built Service platform is very few, even if the construction of a self-built electric business enterprises are generally due to lack of funds progress slowly, in the coverage of regional service response speed difficult to compare with suning easy to buy.

In terms of human cost, compared with Internet enterprises, the cost of manpower is lower, and the manpower demand in courier, after-sale service and customer services is also shared with offline. In addition to the purchasing scale of the bargaining power, in the cost of Operation control, Suning General easy to buy compared with the electric business peers 3%-5% lower.

Tian Cat Electrical City general manager Tan Yu:

For the distribution of oversize electrical appliances, objectively speaking or rely on the power of society, which is part of its composition. We and the third party logistics is information interoperability, if the other party will take the warehouse, there is no warehouse with the logistics of the home system, we have done before the air conditioning group buy.

From the practice of the cat, we will not do less professional things, but the social resources of the third party is really very rich, social services and service resources are actually very powerful, the core is how to get information and data flow through.

Confrontation 2

Relationships with suppliers

Have the supplier to reflect, the traditional line of the channel is large, but the long account, high cost, but also to pay the selection fee, promotional fees, etc., sell half a day also not necessarily earn money, and the Beijing-east, Cat and other electronic business enterprises, they purchase goods to earn the difference, the relationship is more straightforward.

New Seven days CEO Zuoyingjie:

At present, the Gome is using the operating mode of inverted water, and e-commerce channels are used in the distribution model. Gome in doing their business model will not consider the cost, because it can be passed on to suppliers, so they will desperately open shop, so that the entire supply chain costs gradually increase, and gradually lose competitiveness. And in the distribution model, manufacturers and distributors have assumed their maximum pressure, but as long as do their own need to do things, there is no problem.

For example, manufacturers as long as how to design a novel product, to explore the selling point of products to attract consumers, and dealers are desperately put in the goods sold out, this is the director, manufacturers to do things, sales do things, both sides will have a reasonable profit.

Li Bin, Executive vice president of Suning Tesco:

For the main mode of the buyer, Suning easy to purchase, there is no optional fee and promotional fees, products are also generally adopted independent procurement distribution mode. (Source: Southern Metropolis Daily Network)

The open platform strategy that Su Ning buys recently launches, attracted more and more manufacturers in Suning easy to buy on the brand flagship store, manufacturers are mainly in charge of products on the shelves, information maintenance, online consulting and other professional services, and payment, promotion, services by Suning Easy to purchase, the product is still the essence of suning purchase distribution, And does not charge the manufacturer any flagship store platform operating expense. This model belongs to the Business-to-consumer model and has been welcomed by more and more vendors. (Source: Southern Metropolis Daily Network)

Tian Cat Electrical City general manager Tan Yu:

Day Cat platform to do services in the industrial chain upstream and downstream. The actual value of electronic commerce must not be in the original channel system inside out a channel, but channel integration, so that more enterprise structure of its electrical quotient system, this is the cat in the entire industry positioning and value.

I'm joking with the bosses of traditional businesses, with the cat co-operation is still very hard, because we have to do is not to get out of the goods, but the enterprise inside a lot of processes with the electrical business, we do not even exclude the enterprise system can support its brand and official website. We have today's Day cat shop as the official website, the way of virtual channel extension, and finally with its information system has a closer support, is our understanding of the value of the model of the industry.

For example, Haier, Cat Electric City, the formation of consumer orders, but this is a virtual order, flow to the Haier system, this virtual order and its ground all delivery and service system is in the same vein, the data will be precipitated into the enterprise interior. In the future, the cat or Taobao can be this data through the information system to the branches, all over the branches take these virtual orders into physical delivery and distribution, this model can be reflected.

Confrontation 3

Price war

Is the price war the only effective means of competition at this stage? Is it the only way to seize market share at a low price?

Tian Cat Electrical City general manager Tan Yu:

These three years a lot of enterprises through the burning of capital money to promote price competition, through price competition to attract consumer attention. One of my basic judgments, before 2011, the entire electric dealer in the capital of the money, but into the 2012 the entire market size has a certain influence, even upstream industry, brand enterprises are also beginning to prepare their own structural changes. This year we call this round of the world is a price war, in fact, we consider the future of their own market position where the problem, so there are also some statements.

At present, the third party data show that the market share of the cat accounted for more than 50%, we see that the electricity business has its advantages, especially in the channel cost, consumer information interaction. On the next competition, first is based on the Internet front of the marketing integration, the layout of each platform in this area is a very important part, consumers do not just want to buy a bargain; the second latitude in the service experience this end, this is the basic guarantee, the cat recently also launched the so-called next day up, the form of the late-free form; The other is how to transfer consumer data and information to the enterprise, let its service chain follow-up, the data to the platform of various enterprises, so that their service system follow-up to after-sales service, including extended warranty, accident insurance, the manufacturer's ground service system support, Let consumers feel that the purchase is the same as the ground channel protection.

The ability of resource integration, the ability of service, and the ability of informatization are the competitive elements that we see in the future to penetrate into the real sense.

New Seven days CEO Zuoyingjie:

Price wars are not the only means of competition at the moment, but they are the most effective. Because the core value of E-commerce is the cost of the entire supply chain savings, the cost of both price costs, but also time and service costs.

For example, if an electric business enterprise price is not the lowest, but its logistics efficiency is very high, fast delivery, and good service attitude, everywhere for the sake of consumers, it will still have a large number of consumers are attracted. Price is a measure of an enterprise in the supply chain cost of the most direct performance, if this efficiency is high, the price will naturally play low. While price-driven consumption is the main factor at this stage, it is not a determinant. So the future competition in addition to the price will be in the brand Trust, logistics, services and so on.

Gome Online Mall general manager Handepeng:

Low price is always the core of user experience, and is undoubtedly the important weight of Gome's competitive e-commerce. Low price should be based on whether the profit, in the maintenance of reasonable conditions, price war is worth fighting. The low price effect of purchasing scale can guarantee that most commodities are below the market level, but Gome's business strategy is more direct and sensitive on the line.

To start a price war is to have a supply chain advantage as the premise, without this condition price war is not advisable, pure electric business enterprises easy to go into the low price of battle but it is difficult to go out again. Compared with the traditional enterprises, the pure electric business in the supply chain and logistics network is not an advantage, this is Gome online mall and other enterprises to launch a comprehensive low-cost competition key factors.

In addition to spell prices, the electrical business should also be in the supply chain, logistics, distribution and after-sales service and other aspects to enhance user experience, low price is not the competitive advantage of electric business enterprises, but the basis of competition.

Jingdong Mall Responsible Person:

Jing Dong always adhere to the "low price" strategy, is to pass low-cost, high-quality goods for consumers to create value for users to bring a satisfactory shopping experience. Low-price strategy not only attracts consumers, and its high quality and low price of brand merchandise, leading services more Jingdong has accumulated a good customer reputation.

In the company's operations, we strive for cost control excellence, will be more focused on improving the efficiency of the supply chain, committed to the entire supply chain to bring value, improve inventory and cash turnover rate. Jingdong Mall's efficient transformation of low-cost, the formation of a low-cost feedback to consumers of sustainable business-win mode.