What's the matter with the electric dealer, what's Behind the madness

Jingdong, Suning Gome has released ruthless words to let the price of a drop in the end, so many consumers in the expectation, but also produced a doubt, the electrical business in the end, crazy behind what?

These two days, Jingdong Mall, Suning easy to buy, Gome Online Mall, the three major domestic electrical appliances in the online launch of a fierce electrical price war, 17th morning, Urumqi Gome, suning physical stores also followed, opened the Big electric promotion activities. TV, refrigerator, washing machine is the promotion of the whole product, played the lowest price in Xinjiang, the difference double return the slogan.

Urumqi Gome Big Cross Branch store long 郝爽爽: "Before September 20, if customers buy goods in our shopping malls, there are other stores than we cheap, we will double return the difference." ”

Urumqi suning Red Road branch chain store long Hou Wenbing: "Our company in the supply of goods included in the price guarantee is the lowest price." ”

Compared to the madness of businessmen, consumers have shown a rare sense of rationality.

Urumqi citizens: "The price war is their business, the key or they need to buy the appropriate." ”

Reporter: "Do not want to buy today?" ”

Urumqi citizens: "First turn to look, see the right to buy a." ”

Urumqi citizens: "Can have more benefits to the people that is good, causing vicious competition is not good, (if) I will buy." ”

Price war or PR war?

Many consumers in the interview said that to wait and see, even if they want to buy the lowest price. Consumers do not buy, let the electric business became shaved Tiaozi Ituge. Some industry personage also analysis, the electric business dispute also is rejection.

Expert analysis, this so-called "China's electric business history of the largest, the most tragic, the most comprehensive price war" is only to attract the attention of the public relations war, and not necessarily to consumers bring too much substantial benefits.

Kao, professor of marketing, China-Europe International Business School: "In fact, I think this is more of their promotional behavior, is actually grasping the customer's eyeball, and then is to attract customers, not to say that is to the kind of irrational, mano price war." “

And in the industry, the current Chinese electric business industry is facing the biggest problem is customer access, due to fierce competition in the industry, many enterprises in order to obtain accurate customers have to start from the price, to attract customers, the electricity business is actually a shuffle of the market.

Wang Huilu, general manager of the new seven-day brand operations Center: "In the process of starting a new channel, the price war is unavoidable, through the price war we will gain some market share, and then get some market voice, including product pricing rights, and so on." For the industry as a whole may be eliminated part of the not too much strength of this kind of business, this will certainly have a shuffle (role). ”

Electric business industry needs to get out of homogeneity competition

This lively and brutal price war is not really for the benefit of the people, but a marketing way and means. But the reflection is the Chinese electric business model and the lack of profit model. Facing the future development, how to get rid of the single price war and homogeneous competition, cultivate their core competitiveness, is the long-term plan.

Experts believe that the frequent staged electric dealer price war is in fact the adverse competition in the industry, it reflects the problem is that China's electricity companies in products and services for a long time the homogeneity of the competition problem, resulting in prices become the only power dealers can rely on chips.

Kao, professor of marketing, China-Europe International Business school why they are so sensitive to price, first you know in China retail, including electronic goods retail, we do not have much differentiation, the goods are the same, then you have to attract customers, in addition to services, service differences are not so big, then the price becomes the most sensitive. ”

Experts suggest that China's electric business enterprises should get rid of the single price war and homogenization competition as soon as possible, through the industry integration and strengthen innovation, the formation of horizontal has a large platform, vertical professional purpose pattern.

Kao, a professor of marketing and marketing at Ceibs, said: "It is the industry integration, in fact, through the product differentiation is not through the service, through the combination of products, through the ground service and so on a series of long-term sustainable way can be." ”

Ministry of Commerce: Any sales action must be according to law

As experts say, to make the industry and its own healthy and benign development, only low price competition is far from enough. For now, the electric-business debate is continuing and intensifying. Many people are concerned that if the play becomes unfair competition, it is suspected of breaking the law. Recently, the State Department of Commerce on the three big electric business enterprises to make a warning.

"Su ning", "Gome", "Jingdong" between the price war by netizens jokingly called "Three Kingdoms Kill". With the price war escalating, competition is becoming increasingly brutal. The same brand of the same model of goods in several websites prices are constantly lowered, even at the expense of chanting out "You dare to sell a dollar, I will sell 0 yuan" and "three years 0 gross margin" of the amazing language. Faced with the price war between the electric dealers, many people can not help but worry, this price fierce battle is likely to lead to unfair competition. The Ministry of Commerce 16th also responded.

Ministry of Commerce spokesperson Danyang: "The Anti-Unfair Competition Act 11th stipulates that the operator shall not sell the goods at a price below the cost for the purpose of crowding out the opponent." The second paragraph of article 17th of the Antimonopoly Act stipulates that an operator who has a dominant position in the market is prohibited from selling goods at a price below cost without justification. We can make a judgment by the explicit provisions of these laws and regulations. ”

The ministry said it will continue to pay attention to the matter, but also to the three major electric companies to remind.

Ministry of Commerce spokesman Danyang: "The relevant enterprises regardless of the way to carry out sales activities, must strictly abide by national laws and regulations, and consciously maintain fair competition market order, and jointly promote the healthy operation of household electrical appliances market and smooth development." Actively protect the legitimate rights and interests of consumers and suppliers, and perform good corporate social responsibility. ”

Price war may be the process of market shuffle, but if only price war, even tragic to no bottom line, competition will become suicide attack. Consumers enjoy the short-lived low-priced goods, will find that vicious competition is the result of monopoly after the high price, manufacturers in the sustained loss after the development is unsustainable. To avoid such an outcome, enterprises and the relevant departments to do a lot.