What is the bottom line of the price war?

Chatting with a colleague from a famous company today, she said that the company's goods are negative profits, I began to dare not believe that the commodity of the business is profitable, how may be in the goods, she said I just understand: feelings 1200 yuan of goods dare to send 800 yuan gift. This is not a price war in disguise. When it comes to price wars, not by a sigh, yesterday, a customer reflects, a recent very red of a mobile phone than we are a lot cheaper, a look silly, people's price is lower than our cost 40 yuan, and this phone but more than 200 yuan, 40 yuan, how many points? And as far as I know, this company does not have a mobile phone channel background, and our group is 10 years of mobile phone distributors, that is, his family's purchase channels may not be better than us, such a price, is obviously a loss to sell. Last Monday, a friend of the software company came to me and heard her say they also supply several famous suppliers, 50 percent of the people are 40 percent sell, take your goods than you sell cheaper. We have also encountered this situation, to a large company for the mobile phone, others sell less than the price, how do you do? This side of the retail was squeezed out of breath, there to provide for, the most AH Q-like scold a sentence: "SB, lose to go, ye earn your money" in my business these few, such things are countless, clearly the company has a good 820.html "> Channel advantages, There are always other channels than our business-to-consumer price is much lower than you, or licensed, but also with invoices.

In fact, this kind of thing is a precedent, as early as 2000 before and after the Internet madness period, the business of losing money to sell everywhere. Taiwan's E-commerce session has a joke: a brother http://www.aliyun.com/zixun/aggregation/37392.html ">8000 nt into a pile of mobile phones, 6000 yuan to sell, His theory is that the rise in the company's stock market value is enough to compensate for the loss of 2000 yuan. At the time, the theory was right, but it was definitely an abnormal business performance. So capital lost confidence and the stock market shuffled. I thought after so much turbulence, the people have entered the Cooling-off period, learned to be pragmatic, who thought that with the warmer, VC season hit, we started crazy again. I have always believed that the phase loss of the business is normal, the goods do not make money no problem, to lose money to do the internal strength is necessary, and even to fight free shipping is also understandable war, regardless of the cost of the market investment should be, this is the necessary process to cultivate the market. However, it is absolutely unacceptable that goods are sold in a loss. Take out several kinds of goods to lose money for eyeball no problem, but the whole class of goods and even most of the goods are to lose money to sell, can only say is chronic suicide. The scale of losing money for sale is never competitive. All said the loss for scale, the scale of the wind, Rolling snow regiment rolling more and more, the competitors are squeezed to death, the last remaining for the king. However, you can spell to the end, even if the real remnant of the king, would like to increase the price rise? Consumers have been spoiled by us, you 50 percent into 40 percent sell, he will only think you are 30 percent in, 40 percent sold and earned his money.

In the United States, Newegg has played "10% cheaper than Amazon" slogan, buy also played a "cheaper than Newegg 10%" slogan, but they are profitable, because development is benign, the market's formal guarantee of sufficient profits. Providing consumers with better prices than offline is one of the biggest advantages of the business, but should not cut their own meat to confuse the market. A vicious price war is like a seven-punch, hurting and injuring others. China's commodity market itself is in disarray, and it will only make the market worse by cutting meat. This is why some friends from the domestic to the United States, said that not optimistic about domestic business, from the outside to see the industry, too abnormal. The original does not matter, at least there is hope, but the pathological state of the industry is too dangerous. Let the profit rationalize, give oneself an escape, give a way to the competitor, also give the line of the peer of a way, coexistence and co-prosperity.

I heard that Jing Dong this year negative 10 points, red children minus 4 points, hope is just rumors ...