Electricity Supplier &Nbsp: Low Price War?

Low price is the fate of the electricity supplier?

On 2011 singles day, a crazy shopping trip began.

Zero, Taobao online shopping Carnival officially launched.

1 minutes later, 3 million 420 thousand people poured in, 8 minutes trading volume broke 100 million, 21 minutes more than 200 million, 32 minutes to exceed 300 million, 1 hours after reaching 439 million yuan, 4 in the afternoon to break through 2 billion...... As of 12 o'clock, Taobao mall's turnover exceeded 3 billion 360 million yuan, 67.2 times the bachelor's day in 2009.

Among them, 3 brands sold 40 million yuan, 1 over 30 million yuan, 4 more than 20 million yuan, 38 yuan over 10 million yuan, 75 yuan over 5 million yuan, a total of 497 brand store sales exceeded 100 million yuan.

Then, Taobao Department ushered in the "double 12".

Similarly, first minutes after the day's zero point, Taobao's online netizens reached 2 million 700 thousand, and 2 million 780 thousand transactions were completed in 1 hours, with a turnover of 475 million yuan.

While seven, a down jacket was snapped up for more than 1200 hours in 1 hours, while the green box only had 1 stores, but the sales of single shop and singles day were not weak.

In fact, before October 11th, the seven sellers, such as Han Ge and Yi Sha, had been attacked by thousands of small and medium-sized sellers.

After these small and medium-sized sellers maliciously took the commodities, they applied for refund and compensation, which led to the forced sale of these large stores and the stagnation of their operations.

"A group of Taobao stores, including Han's clothing house, was attacked by malicious people, and it was certain that the gang was entangled with one thousand or two thousand people who were malicious retaliation because of the adjustment of the mall rules. As a general businessman, what is the crime? Why should we knock off the jobs of more than 1000 people? "Zhao Yingguang, CEO, publicly condemned it through micro-blog.

This stems from the announcement of "renewal of investment negotiations and rules adjustment in 2012" issued by Taobao mall in October 10th.

In this announcement, it is clear that the technical service fee of "traditional tonic / other health care products" and "brand health care products" will be raised from 2% to 3%.

More importantly, the annual technical service fee increased from 6000 yuan to 30 thousand and 6 million files. The annual turnover is more than 600 thousand, and the dynamic score is over 4.6. Only then can it return some of the cost threshold. The margin has also been set up, from the lowest 10 thousand to the highest 150 thousand, divided into 10 thousand, 50 thousand, 100 thousand and 15 million files. If a merchant sells fake or parallel goods, it will be closed immediately and deduct all the liabilities for breach of contract.

Then, in October 11th, all the operators who complained on the Internet all night broke out suddenly, and declared war against Taobao in the way of besieging many Taobao shop giants.

11 evening, YY voice gathered Taobao mall mall sellers 7000 people, the formation of "anti Taobao alliance", concentrated on the Taobao mall part of the main store merchandise. That night, all the products such as ESA and Korea were forced to go off the shelves. The number of refunds was over ten thousand times, and the European Union was close to twenty thousand. For a time, the order of Taobao mall was chaotic.

On the 12 day, some Taobao mall sellers even pulled up banners at Taobao headquarters in Hangzhou, expressing their dissatisfaction with Taobao's policy of raising prices.

In response, Taobao mall responded, "in order to provide consumers with better quality products and services, we must make changes. Taobao mall and the vast majority of businesses will not abandon their principles because of threats and intimidation."

This tough response led to the escalation of the "siege" and the participation of tens of thousands of people, affecting dozens of online store giants and Taobao mall's "through train" and "Juhuasuan" two major plates.

At this time, the Ministry of Commerce expressed "great concern and attention to this incident".

So Ma Yun apologized, apologized, defended himself and complained.

He said that Alibaba will invest 1 billion 800 million yuan to support the seller of Taobao mall, the margin will be half of the Ali group and the seller, while the old business will be postponed to adjust the annual fee. The new annual fee standard will still be implemented in January 1, 2012 when the new rules come into force. The new annual fee standard will still be implemented in January 1, 2012. However, the seller will still pay the annual fee in accordance with the original rules for the sellers who have settled in the mall before the issuance of the regulations. In 2012, the fees will be converted according to the month.

As a result, there is much debate in the bookstore. Is this a failure of credit or a brand strategy? Perhaps Taobao's first move was too arrogant?

In fact, in this year, the discussion of the "customer crisis" was suddenly overwhelming. What's more, there was a rumor that the loss of customers was 2 billion 500 million.

According to the data of the Beijing Administration for Industry and commerce, sales revenue of all customers from 2008 to 2010 was about 120 million, 300 million and 1 billion 200 million yuan respectively.

In fact, in the past three years, the loss has been around 250 million yuan, and the gross margin of all customers has been maintained at 40%. The profit margin in 2010 is -14.67%.

In the first three quarters of last year, sales revenue was 2 billion yuan. With the expansion of category, inventory began to be too high, but then some low price promotions were implemented, resulting in a decline in profit margins. In 2011, van gain's profit margins began to approach -20%.

As a result, some media believe that the loss of van customer's last year was about 600 million yuan.

The real problem for everyone is rapid expansion.

In December 23, 2010, Chen announced that sales in 2011 amounted to 4 billion yuan.

However, more than 10 days later, Chen announced that every guest was in 2011. Sale Up to 6 billion yuan.

But this is still not the final goal. In March 7th, Chen told the media: "this year, the company's sales target is 10 billion yuan, 5 times that of 2010."

Under this goal, the pressure of various departments can be imagined. Although the first quarter growth was fast, it only completed sales of less than 1 billion yuan.

As a result, customers began the category expansion. Including daily chemicals and other department stores products, has been introduced into the development.

However, the success rate of newly introduced products is not high.

The inventory described above appears.

According to the report, as of September 30, 2011, the total inventory of van customer was up to 1 billion 445 million yuan, and at the end of June 2011 and the end of June 2010, the figure was 850 million yuan and 198 million yuan respectively.

This has become the biggest problem for all customers. difficulty Or the challenge is to expand the category too fiercely. There are some mistakes, such as rice cookers, panels, kitchen knives and so on. Chen said.

Under this pressure, all customers began to shrink, began to cut sales targets, from 10 billion yuan to 6 billion yuan.

In fact, an important reason behind the rapid expansion of customers is the low price, and the development depends on scale.

"In the past, the core competition means of our online shopping enterprises still rely on them. low price However, this vicious competition pattern that will expand market share by price war and advertising campaign is bound to be unsustainable. Jinan University professor Yu Jixin thinks.

Wu Bofan, a business review in twenty-first Century, has said that many electricity providers rely on low prices to get the market. Their greatest value to consumers is low prices. In order to maintain low prices, they continue to finance, which is to take investors' capital and use price wars to get consumers' recognition, rather than create real consumer value.

In fact, COO Gong Dingyu also recognized the danger, especially when he sold ten thousand pieces of single product in Jingdong mall.

In this regard, he issued an appeal, hoping that manufacturers and suppliers will boycott Jingdong, Dangdang and group buying network and other pure e-commerce websites, so as to prevent industry profits from being damaged.

In fact, Jingdong mall is entering huge areas of funds.

Previously, Jingdong even claimed that a department employee should not earn a penny in three years.

And you have to respond, first of all, take the entity store + directory sales + e-commerce Trinity channel mode, so that entities can provide richer experiential sales services. More importantly, Hu has launched its own clothing brand, "Kay Kay" and "Kelli Belle" children's clothing.

These initiatives are bringing joy to new directions.

Similarly, the men's brand name brand is also actively developing offline stores.

According to founder Wu Shihui, sales from Taobao mall now account for only half of the total sales, and the proportion of Taobao has been declining.

In fact, they have opened more than a dozen franchises in Shanghai, Songjiang, Guangxi, Yunnan, Henan, Shandong, Anhui and Xiamen.

The green box has opened several experiential shops, with more than 80 designers and more than 20 data analysis teams.

"The ability of the electricity supplier to operate is only a foundation for the success of the brand. If we really want to succeed, we must have strong brand building capability as well as offline brands," Wu Shihui said. "The whole enterprise should do a good job of building a complete system around the brand, such as supply chain and marketing."

In fact, the strong brands in the future will have dual genes of traditional brands and Amoy brands.

Returning to tradition is indeed an irreversible direction.

After all, e-commerce is also a category of business. Without value creation, it will be past clouds and smoke.

In business, service is an important part.