Yongle Electrical Entity Store also joined the price war

The price war, which has been pitched for two days, may be just the beginning.

From August 17 onwards, Gome, Suning will launch the largest nationwide promotion. The two stores of their own more than 1700 stores to achieve a full line of products online price.

Next week, Jingdong's price intelligence will enter the store, Gome is very generous to this, gome in southern China even to "spy" to provide free lunch and national art clothing. It can be seen that the electric dealers and stores are ready to fight a protracted war.

Plus the big China Electric appliances announced full take, so far, including Gome, Suning, large and yongle, including four big appliances chain stores have joined the price war, the four stores will join forces to Jingdong Mall formation "encirclement and suppression" trend.

Suning "National grand Benefit war" abundant supply

Yesterday morning, Suning appliance 1700 stores in collaboration with Suning easy to purchase the launch line under the "National Grand Benefit War", Sprint billion sales target of two weeks.

At the same time, Suning has been united with more than hundreds of global first-line suppliers signed a large purchase of tens of billions of orders to ensure that during the activities of Suning online under the absolute price advantage and adequate sourcing preparation.

The consumer in Suning store for the scene parity, as the price of goods than the mainstream and rival entities stores, Su Ning will be on-site to double replenishment, to ensure that the line under the entire network under the minimum price.

Suning Electric Appliance President Jin Ming told reporters that this year's largest promotional, Suning line 1700 stores to invest more than 2 billion of promotional resources, the goal sprint 10 billion yuan sales, the line will continue to increase promotional efforts, focusing on moving from large appliances to 3C category, will price war to the whole network, ahead of the "Golden Nine Silver Ten" Home appliance market.

As of press time, Suning electric appliance Nanjing area, including Nanjing, Yangzhou, Taizhou, Zhenjiang and other 78 stores sold hot, year-on-year growth of more than 600%.

With the constant spread of the price war of the electric dealer, the irrational competition of the market intensifies.

August 17, Gome unexpectedly to the peer issued a proposal, called for rational competition between peers, against mutual slander, mutual undermining of the irrational competition behavior.

The original proposal is as follows:

1. Gome advocates civilized competition among peers, rational competition, because only benign competition, can promote the industry to survive the fittest, better service consumers. We are opposed to the irrational competition among our peers who are vilified and undermine each other.

2. As a retailer, we should jointly abide by the commercial bottom line of the principle of good faith, resolute, and fulfill all the commitments of the enterprise to the market. In the competition process should respect each other, speak good faith!

3. Gome advocates "small profits but quick turnover, service the leading" business philosophy, through the control of costs, improve efficiency, will be low prices, good quality, high service products recommended to consumers.

4. The competition between enterprises must be based on the protection of consumers and suppliers of the interests of the competition, through competition to enhance their own management and management capabilities, can promote the healthy and orderly development of the industry.

5. We advocate all the peers, strictly abide by national laws and regulations, consciously maintain fair competition market order, and jointly promote the healthy development of household electrical appliances market, to fulfill the social responsibility of good corporate citizens.

Gome calls for colleagues to stop disparaging actions

August 16 night, concentrated in the South Wing Lok entity store began to join the price war, and Suning, Gome together "encirclement and suppression" Jingdong Mall. It will be implemented "online parity, shop orders." At this point, gome, including medium-sized, Yongle in all physical stores have joined the unprecedented price war.

Online price unification was originally an important marketing strategy for the three anniversary promotion of Suning, but limited to 3C products. But from today Suning easy to buy will also cover the traditional home appliances, which means that the Suning entity store product sales profit will be reduced, for more than 1700 stores of Suning, is really down the drain. Not only that, Gome even said the price war to the end of the demise of the east.

"Gome is a price war to lay the Jiangshan, play price war, Jingdong is obviously a child." Yang, vice president of Gome, said publicly. And according to the reporter understand, Su Ning, the United States and Beijing East so dare to compete, because its line is the same procurement platform under the purchase of large quantities, purchase price can be cheap. Last year, suning procurement scale of 200 billion yuan, while the Beijing east only 26 billion yuan.

Medium and Wing-Lok physical store to join the price war

The Beijing-East truce is mistaken.

On the afternoon of August 17, some media reported that Jingdong CEO Liu announced the end of the price war. But a few minutes after the news, Liu responded with a denial.

Liu said, "This is misreading, price war never end that day!" We yesterday issued more than 200 million coupons, has been waiting for Suning also follow up! Yesterday afternoon, the news said that Liu accept a financial media exclusive interview, put forward Jingdong to stop price war, he said price war is inevitable, but now this is a vicious price war, "if this goes on, not three months three families have to die", he declared that the war has ended.

Liu said, Su Ning, Gome's offline business want to transfer to the line, not ten years is not transferred, the process of transformation of Gome, Su Ning is too painful. And the price war just sped them up, "in the course of the transfer, we were scrambling for some of the users." ”

Liu said that if the vicious price war could stop, he would no longer raise funds and direct IPOs. If the vicious price war continues, he will stop the IPO and continue to raise money.

The predicament of Jing Dong

Silent Capital

The venture capital shareholder of Jing Dong loses the language collectively. August 16, the reporter through various ways to contact today's capital, Bull Capital, Kleiner, Sequoia, Tiger Fund, DST and other international VC boss or senior executives, everyone euphemistically refused to answer any questions about Jingdong. This contrasts sharply with Liu's high profile.

More interesting details are: In the Liu name of the capital list, but not the first large institutional investors in Jingdong jianling Capital.

Previously, as the leader of the high Jianling capital is actively for the Beijing-East overseas IPO plan to push forward.

"PE financing money than a A-share financing of the valuable to go, PE is a fool?" "Le Bo capital partner Ning to reporters, Liu move is bluffing, behind is hype marketing, advertising costs and costs are cut." The more promotions you lose, the more you lose, and the investors can't afford to burn them. The collective silence of the VC shareholders may be the dilemma of Beijing and east.

Daily economic News (blog, Weibo)

Dangdang Ten Ask Liu

August 16 evening began to Dangdang ask Jingdong Mall CEO Liu, yesterday is set Qi "ten Ask Liu". At the same time, Dangdang CEO Guoqing also through micro-blog said, not only everyone, Dangdang's mobile phones, computers and small household appliances and Dangdang gome online flagship store all varieties are involved in the price war. Guoqing said, from the situation, playing down to dangdang more advantages than disadvantages. Dangdang official micro-Bo two issued a "ten asked Liu", questioned the Beijing-east launched the electric business War is the motive for the withdrawal of funds. It is mentioned that the price of Jingdong is not cheap, gimmick is to return funds, let the old funds more practical, let the new fund quickly come in to buy.

In addition, the "Ten questions" also mentioned, although Jingdong denied contact with private, but a few weeks ago, Jingdong finance team appeared in the new Poly building looking for CIC. Dangdang also questioned: Jing Dong and how much less money? Do you have money to fight price? Dangdang thinks, Jing Dong three years to lose 5.5 billion yuan, the money on hand should still have 700 million ~13 billion yuan, this part of fund cannot support the scale of Jingdong. Therefore, Dangdang said that the Beijing-East price war is to withdraw funds.