The e-commerce war that started on August 15 was "King Sumei Three Kingdoms Killing" because of Jingdong Mall's abrupt "dumb fire". “A Chihuahua pounced on two black shells. When everyone was serious, the Chihuahuas ran away.†The economist Ma Guangyuan made such a Weibo comment on the e-commerce war and was rated by the netizens as “the most interesting comments.â€
When Ma Guangyuan issued this Weibo, it was the time when Suning and Gome began collaborating online and offline to declare war on Jingdong Mall. On that day, Suning and Gome's two major traditional home appliance retail giants invariably formed online e-commerce channels and retail stores under the line to form a joint team and launched a ferocious counterattack against Jingdong Mall, the instigator of the e-commerce war. After a few days of war, the first round of the “Three National Kills†had already made a roaring payment. When all the parties involved in the war announced victory with several times more sales data, everyone suddenly discovered that the industry had quietly experienced this war. A change.
E-commerce battles
Chengdu: Gome Suning sales more than tripled year-on-year
On August 16th, the second day of the Jingdong Mall battle with Suning Tesco, Suning made a large-scale advertisement in Chengdu, announcing that from 9:00 am on August 17th, its physical stores cooperated with the Suning Tesco launch line. Under the line "National Great Efforts", counterattacks were made to Jingdong Mall through "double-ups" and "full return to one hundred". In the afternoon of the same day, Gome held the "Swearing Conference" in Chengdu, clearly slogans of "Killing Jingdong" and announced that 61 stores in Chengdu formally adjusted the price to ensure that the physical store price is lower than Jingdong Mall, and the online and offline simultaneous low price measures will be launched. .
From August 17 to 19, "Beijing, the Soviet Union, the United States, and the three countries killed" fully opened fire, online and offline go hand in hand, home appliances retail industry booming. A few days after the war, everyone cleaned up the battlefield, and they all showed positive sales figures.
According to data released by Suning, in the three days from August 17 to 19, sales in Chengdu region increased by 400 percent year-on-year, setting the largest increase this year. Chengdu Suning Tesco achieved a 12-fold year-over-year increase in sales. . Gome's data shows that Chengdu Gome's sales achieved an overall growth of more than 200% compared with the previous weekend, from August 18 to 20th. Even the five-star electrical appliance that is not the protagonist of the "three-nation killing" has also made a lot of profits during this period. Zhang Yi, general manager of Sichuan Five Star Electric Co., Ltd., said that from August 17th last weekend, the traffic volume of seven stores of Chengdu Wuxing doubled from the same period of last year. "Completed 157% of headquarters' mandates, an increase of 90% over the same period last year."
The Jingdong Mall that initiated this e-commerce war has not released the final sales data of the days of war. It only revealed that “the sales of major home appliances exceeded 200 million yuan on August 15, and the sales of major home appliances exceeded 350 million for the whole day. Yuan" information. However, after the publication of this result, it caused many doubts in the industry, but so far Jingdong has not made any response to the question.
The profit statement may be a bit ugly
However, behind this gratifying sales data, the gains and costs of participating in the war are only clear to the participants themselves. Perhaps the profit report that needs to be reported will dilute some of the joy of harvest.
An insider of a company involved in the e-commerce wars privately told reporters that although the sales of the war rushed high, but the price policy "certainly caused a lot of blood for all companies," resulting in a substantial reduction in profitability. The insider said that in the e-commerce wars, the prices of several major e-commerce sites allow consumers to directly compare prices, whichever is lower. "Although there are some commodities because of 'out of stock' or 'model differences' and other reasons, to avoid the actual sales or parity, it has attracted criticism of 'too much saliva, too little price', but there are still a considerable part of the goods The price has actually been lowered, and some are even completely lost.
More importantly, in the past, physical stores and online shopping malls were two price systems. The prices of physical stores were often higher than those of online stores. But this time it was online and offline prices, and even a company's physical stores and online shopping malls sold at the same price. , "This will lead to the loss of profits, make the final profit statement more ugly."
The person in charge of an online mall told the reporter that in these years, e-commerce companies have adopted a "profit-for-share" strategy, preferring to sacrifice profits, but also to rush up market share, so there are not many e-commerce companies that really make money. "To tell the truth, the more we sell, the more vicious the loss, but you have to join the battle, otherwise the market share will be eroded and the loss will be even greater," said the person in charge.
Impact of E-Commerce War
Online and offline products with the same price
Stores battle to break the rules of the game for many years
Online and offline products with the same price
The E-Commerce War “Three Kingdoms Kill†has real skill, but there are also fake styles, and the final event evolved with a bit of entertainment, but for each company, the sales are won, and profits are lost, but after all, the profits are lost. It is better than worry, after all, this year's sales pressure actually reduced a lot. At present, all parties involved in the war have already plundered their troops and even started to raise prices. The e-commerce war has ended in phases. However, the impact of this war has not come to an end. The game rules of the industry for many years have been inadvertently changed and even have far-reaching implications.
Collaborate online and offline
“In the past, the relationship between our physical stores and online stores was not large, and even internally it was divided into two relatively independent systems. Each of the goods sold had its own price, and there were few conflicts and few integrations. This time, physical stores and online malls have started to work together. At first glance, this is just a strategy for this impulse, but it actually shows that everyone is changing their consciousness in the new competitive environment, even the internal structure.†A market for home appliance retail giants The head of the department told reporters that during the World War II, the person in charge of the physical store and the person in charge of the online mall had to meet together to study countermeasures, discuss together which products to choose for promotion, and formulate promotional prices for overlapping products, etc. This has never happened before."
End of the line "under the same price"
In addition, the price system has changed. It is understood that in the past, because of the "profit-for-share" strategy and relatively low operating costs, online shopping malls often have lower prices than physical stores, so that consumers "see physical goods in physical stores and place orders online." Case. In this e-Commerce Wars, Suning and Gome began to adopt the “online and offline same price†strategy. The same model products are at the same price in physical stores and online shopping malls, changing the long-standing existence of different products. The pattern of price.
Gu Wei, general manager of Sichuan Suning, said in an interview with reporters: “In the future, online and offline sales at the same price will become the norm.†It is understood that Suning has started to implement the “online and offline same price†measures in Beijing, and will continue to Will be promoted throughout the country. Industry insiders believe that this trend will force future entity stores and online stores to further differentiate product selection to ensure profitability.
Forecast of E-Commerce War
The war may be even more tragic at the end of September
On August 17, Suning and Gome’s online and offline activities started the same day. Jingdong Mall CEO Liu Qiang Dong said in an interview with the media: “Jingdong wants to stop the price war. This is a vicious price war. If If this continues for three months, all three will have to die.†Later, he sent Weibo and said, “I never said that the war is over. Instead, the war has only just begun!†But this week combined Jingdong, Suning and Gome. In response to the price adjustments, we all understand that the "three-nation killing" is only the first round of the current round of battles. Everyone needs to relax their breath and brewing the next battle. There are indications that the next battle will start at the end of September.
An industry source told reporters that from the previous year's situation, "11" is the peak period of consumption, the major retail channels will focus on sales, but from the previous year, the "Eleventh" price war began in the last week of September The trend has become more and more obvious, because the scale of the “11†consumer travel is getting bigger and bigger. Everyone hopes to rush to grab sales before consumers concentrate on travel.
According to report, from the previous year, Suning, Gome, and five-star physical stores all began mass promotion in the last week of September. Last year, in addition to physical stores, online shopping malls also joined in, online and offline synchronization start "11" Promotions. "It is entirely safe to say that this year's e-commerce war will follow this rule, set off a price war in the last week of September, and it will be like the "three-nation killing" online and offline." An industry source said.
Behind the scenes of the E-Commerce War
Loss of profits in the war does not participate in the loss of channels
E-commerce manufacturers call for pain
The e-commerce “Three Kingdoms Kill†was false and false, and Gome, Suning, and Jingdong not only took advantage of this free marketing but also increased sales. However, home appliance manufacturers sandwiched between physical stores and e-commerce companies are in a dilemma: short-term price wars can really stimulate the market, but if the long-term price war is not bottomed out, it is bound to change from suppliers to "supply injuries." Resisting price wars, manufacturers may lose their channel cooperation with e-commerce.
There must be a warrior under pressure. On August 15, Haier, a domestic appliance giant, suddenly reported that it had stopped cooperation with JD.com since August. Although Haier has denied it afterwards, Liu Qiangdong also made it clear that there are indeed one-third of brands that oppose the price war. The attitude of home appliance manufacturers in resisting the e-commerce price war has become clear. However, most home appliance manufacturers still choose to be silent. The silence is behind the absence of the right to speak in front of a strong channel, or because they do not want to face the risk of rushing to “stand in lineâ€.
Appliance manufacturers:
Don't rush me
Standing in the middle of the vortex of e-commerce wars, home appliance manufacturers as suppliers are undoubtedly contradictory. On the one hand, the economic environment has led to high inventory levels and it is necessary to release inventory and repatriate funds through multi-channel promotions. On the other hand, Jingdong’s slogan of “3 years of zero profit†has led them to discover that this may be a bottomless pit. The ultimate injury will be Manufacturers themselves. Therefore, at the beginning of the war, most home appliance manufacturers "held a crowd" with a sly mood, but at the end of the war, they will have to burn themselves and have to make a sound.
“Because the price of Jingdong Mall was too low, we stopped cooperating with it in August this year.†On August 15th, Song Baoai, general manager of Haier’s e-commerce, said in an interview that due to the unified procurement with Gome and Suning, it will continue Continue to cooperate with the latter two. However, Haier later denied this. However, Hu Jianyong, vice president of marketing for Hisense Electric Co., Ltd., has a very clear attitude: "We firmly oppose any channel to fight the price war without principle, and we will not bear the loss caused by the channel's unilaterally playing a low price. In order to reduce the price of Hisense products, we will adopt a temporary suspension of supply."
Su Zihuan, executive deputy general manager of Changhong Multimedia Industry Co., Ltd., said: “I am not only cheering for consumers, but also the interest protection issues of channel distributors, especially traditional distributors in the 3rd and 4th markets. A healthy industry needs reasonable profit support to ensure the future. With sound development, we will provide more personalized and customized products on the e-commerce platform instead of pursuing low prices.â€
In fact, this so-called e-commerce “three-nation killing†is actually a contest between the traditional chain of home appliances represented by Gome and Suning and the e-commerce website. Gome and Suning’s strategy of synchronizing prices online and offline has naturally passed some of the pressure on home appliance manufacturers. "It's impossible for the channel to lose money and earn money. If the price war exceeds our bottom line, then it will only accompany you to play," said one television company, who declined to be named. Another air-conditioning manufacturer believes that “the game between manufacturers and channels exists for a long time. Big brands dare to oppose, small brands can only bite the bullet and promise. This e-commerce war, put it bluntly, is to take our money to do them Market."
Expert Weapons:
Personalized products respond to e-commerce wars
“JD’s profit model is more and more like the model of Gome and Suning’s physical store entrance fee. The difference between the wholesale and retail price of sales gross profit Jingdong may be zero, and earning manufacturers’ high rebates and entry fees becomes an important profit. Currently, JD.com is very eager to build a financial platform model for Suning and the US, and the greater the sales platform, the more opportunities will be charged to suppliers for harsh taxation. “The consumer electronics industry economic observer Liang Zhenpeng said:†The e-commerce price war has intensified and will continue for at least three years. In five years, the trick is to kidnap the suppliers."
Not only that, but behind the madness of e-commerce price wars, e-commerce companies have also stepped up their efforts to squeeze suppliers’ money. Liu Buchen, a well-known household appliance industry analyst, believes that the price war on e-commerce channels will have two impacts on home appliance manufacturers. One is to disrupt the price system. “The price system of home appliance manufacturers is a game of chess. The e-commerce channels are frantically cutting prices. What about the prices of physical channels? I am afraid that they will not be able to sell them if they do not follow up.†Second, e-commerce companies may pass losses to home appliance manufacturers, default on payment, or make goods available. The business directly pays the bill.
Liu Buchen wrote in his blog: “Before, although Gome and Suning almost unified the home appliance sales market, the prices of household appliances in different stores and regions are not too different. Manufacturers can use information asymmetry to make profits, and if they all go to online sales, With transparent prices and easy comparison, the profits of home appliance manufacturers will inevitably be squeezed.In the future, home appliance manufacturers want to maintain profitability, and they should increase personalization as much as possible to increase the types of consumer choices. Just like clothing, although full competition, businesses can still rely on Personalize the style to make money."
When Ma Guangyuan issued this Weibo, it was the time when Suning and Gome began collaborating online and offline to declare war on Jingdong Mall. On that day, Suning and Gome's two major traditional home appliance retail giants invariably formed online e-commerce channels and retail stores under the line to form a joint team and launched a ferocious counterattack against Jingdong Mall, the instigator of the e-commerce war. After a few days of war, the first round of the “Three National Kills†had already made a roaring payment. When all the parties involved in the war announced victory with several times more sales data, everyone suddenly discovered that the industry had quietly experienced this war. A change.
E-commerce battles
Chengdu: Gome Suning sales more than tripled year-on-year
On August 16th, the second day of the Jingdong Mall battle with Suning Tesco, Suning made a large-scale advertisement in Chengdu, announcing that from 9:00 am on August 17th, its physical stores cooperated with the Suning Tesco launch line. Under the line "National Great Efforts", counterattacks were made to Jingdong Mall through "double-ups" and "full return to one hundred". In the afternoon of the same day, Gome held the "Swearing Conference" in Chengdu, clearly slogans of "Killing Jingdong" and announced that 61 stores in Chengdu formally adjusted the price to ensure that the physical store price is lower than Jingdong Mall, and the online and offline simultaneous low price measures will be launched. .
From August 17 to 19, "Beijing, the Soviet Union, the United States, and the three countries killed" fully opened fire, online and offline go hand in hand, home appliances retail industry booming. A few days after the war, everyone cleaned up the battlefield, and they all showed positive sales figures.
According to data released by Suning, in the three days from August 17 to 19, sales in Chengdu region increased by 400 percent year-on-year, setting the largest increase this year. Chengdu Suning Tesco achieved a 12-fold year-over-year increase in sales. . Gome's data shows that Chengdu Gome's sales achieved an overall growth of more than 200% compared with the previous weekend, from August 18 to 20th. Even the five-star electrical appliance that is not the protagonist of the "three-nation killing" has also made a lot of profits during this period. Zhang Yi, general manager of Sichuan Five Star Electric Co., Ltd., said that from August 17th last weekend, the traffic volume of seven stores of Chengdu Wuxing doubled from the same period of last year. "Completed 157% of headquarters' mandates, an increase of 90% over the same period last year."
The Jingdong Mall that initiated this e-commerce war has not released the final sales data of the days of war. It only revealed that “the sales of major home appliances exceeded 200 million yuan on August 15, and the sales of major home appliances exceeded 350 million for the whole day. Yuan" information. However, after the publication of this result, it caused many doubts in the industry, but so far Jingdong has not made any response to the question.
The profit statement may be a bit ugly
However, behind this gratifying sales data, the gains and costs of participating in the war are only clear to the participants themselves. Perhaps the profit report that needs to be reported will dilute some of the joy of harvest.
An insider of a company involved in the e-commerce wars privately told reporters that although the sales of the war rushed high, but the price policy "certainly caused a lot of blood for all companies," resulting in a substantial reduction in profitability. The insider said that in the e-commerce wars, the prices of several major e-commerce sites allow consumers to directly compare prices, whichever is lower. "Although there are some commodities because of 'out of stock' or 'model differences' and other reasons, to avoid the actual sales or parity, it has attracted criticism of 'too much saliva, too little price', but there are still a considerable part of the goods The price has actually been lowered, and some are even completely lost.
More importantly, in the past, physical stores and online shopping malls were two price systems. The prices of physical stores were often higher than those of online stores. But this time it was online and offline prices, and even a company's physical stores and online shopping malls sold at the same price. , "This will lead to the loss of profits, make the final profit statement more ugly."
The person in charge of an online mall told the reporter that in these years, e-commerce companies have adopted a "profit-for-share" strategy, preferring to sacrifice profits, but also to rush up market share, so there are not many e-commerce companies that really make money. "To tell the truth, the more we sell, the more vicious the loss, but you have to join the battle, otherwise the market share will be eroded and the loss will be even greater," said the person in charge.
Impact of E-Commerce War
Online and offline products with the same price
Stores battle to break the rules of the game for many years
Online and offline products with the same price
The E-Commerce War “Three Kingdoms Kill†has real skill, but there are also fake styles, and the final event evolved with a bit of entertainment, but for each company, the sales are won, and profits are lost, but after all, the profits are lost. It is better than worry, after all, this year's sales pressure actually reduced a lot. At present, all parties involved in the war have already plundered their troops and even started to raise prices. The e-commerce war has ended in phases. However, the impact of this war has not come to an end. The game rules of the industry for many years have been inadvertently changed and even have far-reaching implications.
Collaborate online and offline
“In the past, the relationship between our physical stores and online stores was not large, and even internally it was divided into two relatively independent systems. Each of the goods sold had its own price, and there were few conflicts and few integrations. This time, physical stores and online malls have started to work together. At first glance, this is just a strategy for this impulse, but it actually shows that everyone is changing their consciousness in the new competitive environment, even the internal structure.†A market for home appliance retail giants The head of the department told reporters that during the World War II, the person in charge of the physical store and the person in charge of the online mall had to meet together to study countermeasures, discuss together which products to choose for promotion, and formulate promotional prices for overlapping products, etc. This has never happened before."
End of the line "under the same price"
In addition, the price system has changed. It is understood that in the past, because of the "profit-for-share" strategy and relatively low operating costs, online shopping malls often have lower prices than physical stores, so that consumers "see physical goods in physical stores and place orders online." Case. In this e-Commerce Wars, Suning and Gome began to adopt the “online and offline same price†strategy. The same model products are at the same price in physical stores and online shopping malls, changing the long-standing existence of different products. The pattern of price.
Gu Wei, general manager of Sichuan Suning, said in an interview with reporters: “In the future, online and offline sales at the same price will become the norm.†It is understood that Suning has started to implement the “online and offline same price†measures in Beijing, and will continue to Will be promoted throughout the country. Industry insiders believe that this trend will force future entity stores and online stores to further differentiate product selection to ensure profitability.
Forecast of E-Commerce War
The war may be even more tragic at the end of September
On August 17, Suning and Gome’s online and offline activities started the same day. Jingdong Mall CEO Liu Qiang Dong said in an interview with the media: “Jingdong wants to stop the price war. This is a vicious price war. If If this continues for three months, all three will have to die.†Later, he sent Weibo and said, “I never said that the war is over. Instead, the war has only just begun!†But this week combined Jingdong, Suning and Gome. In response to the price adjustments, we all understand that the "three-nation killing" is only the first round of the current round of battles. Everyone needs to relax their breath and brewing the next battle. There are indications that the next battle will start at the end of September.
An industry source told reporters that from the previous year's situation, "11" is the peak period of consumption, the major retail channels will focus on sales, but from the previous year, the "Eleventh" price war began in the last week of September The trend has become more and more obvious, because the scale of the “11†consumer travel is getting bigger and bigger. Everyone hopes to rush to grab sales before consumers concentrate on travel.
According to report, from the previous year, Suning, Gome, and five-star physical stores all began mass promotion in the last week of September. Last year, in addition to physical stores, online shopping malls also joined in, online and offline synchronization start "11" Promotions. "It is entirely safe to say that this year's e-commerce war will follow this rule, set off a price war in the last week of September, and it will be like the "three-nation killing" online and offline." An industry source said.
Behind the scenes of the E-Commerce War
Loss of profits in the war does not participate in the loss of channels
E-commerce manufacturers call for pain
The e-commerce “Three Kingdoms Kill†was false and false, and Gome, Suning, and Jingdong not only took advantage of this free marketing but also increased sales. However, home appliance manufacturers sandwiched between physical stores and e-commerce companies are in a dilemma: short-term price wars can really stimulate the market, but if the long-term price war is not bottomed out, it is bound to change from suppliers to "supply injuries." Resisting price wars, manufacturers may lose their channel cooperation with e-commerce.
There must be a warrior under pressure. On August 15, Haier, a domestic appliance giant, suddenly reported that it had stopped cooperation with JD.com since August. Although Haier has denied it afterwards, Liu Qiangdong also made it clear that there are indeed one-third of brands that oppose the price war. The attitude of home appliance manufacturers in resisting the e-commerce price war has become clear. However, most home appliance manufacturers still choose to be silent. The silence is behind the absence of the right to speak in front of a strong channel, or because they do not want to face the risk of rushing to “stand in lineâ€.
Appliance manufacturers:
Don't rush me
Standing in the middle of the vortex of e-commerce wars, home appliance manufacturers as suppliers are undoubtedly contradictory. On the one hand, the economic environment has led to high inventory levels and it is necessary to release inventory and repatriate funds through multi-channel promotions. On the other hand, Jingdong’s slogan of “3 years of zero profit†has led them to discover that this may be a bottomless pit. The ultimate injury will be Manufacturers themselves. Therefore, at the beginning of the war, most home appliance manufacturers "held a crowd" with a sly mood, but at the end of the war, they will have to burn themselves and have to make a sound.
“Because the price of Jingdong Mall was too low, we stopped cooperating with it in August this year.†On August 15th, Song Baoai, general manager of Haier’s e-commerce, said in an interview that due to the unified procurement with Gome and Suning, it will continue Continue to cooperate with the latter two. However, Haier later denied this. However, Hu Jianyong, vice president of marketing for Hisense Electric Co., Ltd., has a very clear attitude: "We firmly oppose any channel to fight the price war without principle, and we will not bear the loss caused by the channel's unilaterally playing a low price. In order to reduce the price of Hisense products, we will adopt a temporary suspension of supply."
Su Zihuan, executive deputy general manager of Changhong Multimedia Industry Co., Ltd., said: “I am not only cheering for consumers, but also the interest protection issues of channel distributors, especially traditional distributors in the 3rd and 4th markets. A healthy industry needs reasonable profit support to ensure the future. With sound development, we will provide more personalized and customized products on the e-commerce platform instead of pursuing low prices.â€
In fact, this so-called e-commerce “three-nation killing†is actually a contest between the traditional chain of home appliances represented by Gome and Suning and the e-commerce website. Gome and Suning’s strategy of synchronizing prices online and offline has naturally passed some of the pressure on home appliance manufacturers. "It's impossible for the channel to lose money and earn money. If the price war exceeds our bottom line, then it will only accompany you to play," said one television company, who declined to be named. Another air-conditioning manufacturer believes that “the game between manufacturers and channels exists for a long time. Big brands dare to oppose, small brands can only bite the bullet and promise. This e-commerce war, put it bluntly, is to take our money to do them Market."
Expert Weapons:
Personalized products respond to e-commerce wars
“JD’s profit model is more and more like the model of Gome and Suning’s physical store entrance fee. The difference between the wholesale and retail price of sales gross profit Jingdong may be zero, and earning manufacturers’ high rebates and entry fees becomes an important profit. Currently, JD.com is very eager to build a financial platform model for Suning and the US, and the greater the sales platform, the more opportunities will be charged to suppliers for harsh taxation. “The consumer electronics industry economic observer Liang Zhenpeng said:†The e-commerce price war has intensified and will continue for at least three years. In five years, the trick is to kidnap the suppliers."
Not only that, but behind the madness of e-commerce price wars, e-commerce companies have also stepped up their efforts to squeeze suppliers’ money. Liu Buchen, a well-known household appliance industry analyst, believes that the price war on e-commerce channels will have two impacts on home appliance manufacturers. One is to disrupt the price system. “The price system of home appliance manufacturers is a game of chess. The e-commerce channels are frantically cutting prices. What about the prices of physical channels? I am afraid that they will not be able to sell them if they do not follow up.†Second, e-commerce companies may pass losses to home appliance manufacturers, default on payment, or make goods available. The business directly pays the bill.
Liu Buchen wrote in his blog: “Before, although Gome and Suning almost unified the home appliance sales market, the prices of household appliances in different stores and regions are not too different. Manufacturers can use information asymmetry to make profits, and if they all go to online sales, With transparent prices and easy comparison, the profits of home appliance manufacturers will inevitably be squeezed.In the future, home appliance manufacturers want to maintain profitability, and they should increase personalization as much as possible to increase the types of consumer choices. Just like clothing, although full competition, businesses can still rely on Personalize the style to make money."
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