The real reason for the prevailing price war

Dangdang excellence for so many years, has been struggling in the loss line, sales, poor earnings. The most direct reason is the price war. In fact, in addition to Dangdang excellence, many other B2C are deep price war. So why do they love the price war, even if they do not make money to support it?

I’m trying to analyze the underlying causes of the independent B2C’s price wars:

1 online shopping market is in its infancy, consumer demand has not yet presented a large-scale diversification.

with the development of economy and the change of people’s consumption concept, the price in the shopping consumption weight will decline, people on the quality of products, style, material, product value, brand value and other aspects of attention will be strengthened, shopping demand is also showing a diversification trend, even as if purchase conditions. Due to the current online shopping market customer demand is still relatively simple, in people’s minds and also online shopping cheap sign. So independent B2C had to stare at the only market demand, and take the low price strategy to compete with other companies. But the future of online shopping market, is not synonymous with cheap goods. This time will not be long, almost 35 years.

suggested that B2C should focus on the future, the selected population, build their own characteristics, for future online shopping demand diversification prepared, division of online shopping population with the traditional market in the future there will not be any difference, not only look at everyone.

2 operators generally lack of industry responsibility

is similar to Dangdang and excellence in competition, the most typical traditional enterprises to McDonald’s and KFC, you’ve seen them in the price war? People are rising in the process of continuous type competition, competition in the market to expand. The products provided by others are the same as 80%, why open the face to face, their business is so good, the customer has never thought that as long as McDonald’s had eaten, you do not have to eat KFC!

appliance stores Gome boss is on the upstream, squeezing the profits of the manufacturer, occupy the upstream firm’s capital to grow their right, but after the early stages of this strategy, grow their own, more should treat the upstream suppliers to a win-win attitude, together in this industry chain to provide better customer service is. In this industry, the industry has the sense of responsibility than GREE, he can promise that its dealers can not lose, even if the loss will take their profits subsidies to the dealer. This kind of mind can have a few operators have, so people can play against Wong Kwong Yu Dong Mingzhu, rely on their own channels to achieve high growth, not without reason. Take a look at the world can be regarded as a great business, to see how people treat upstream and downstream.

Internet enterprise also is such, happy farm, developed the somebody else fire, you own, you let people do third party, like this, who will conscientiously develop products, open > anyway.