if you use a word to describe the first half of 2012 Chinese electricity supplier, it is undoubtedly the lowest two words, this wave of price cuts can be said that if the previous There was no parallel in history., cheap promotional business is guerrilla, now is the "hundred regiments", size and length is rare in recent years, take may the price war, for example, the first is the United States to invest 90 million to consumers, followed by Jingdong in May 6th announced plans to invest 500 million yuan of home appliance promotional activities, then in May 7th, Tmall Electric City announced plans to invest 200 million yuan to start over the summer promotional activities, then suning.com executive vice president Li Bin said, Suning plans to invest 2 billion yuan special offer goods and 400 million yuan of profits to the limit, again a comprehensive breakdown upset the whole network. This amazing data do let consumers feel great happiness, but for the business enterprise also said miserably, invested heavily hit users, profit is lower or even peibenzhuanyaohe, among them whether it is rational regression orvicious competition?
actually I think this is not a vicious competition, but the first market profit marketing strategy, which is the inevitable choice in Chinese business environment, but the current situation, low-cost marketing should be regarded as the most ideal business competition means.
low price strategy is another interpretation of the market after the earnings
when the May Day holiday, all commercial enterprises have thrown cheap promotional signs, we have thought they really lose it? Where is the Jingdong, we know relatively generous business enterprise, they in the first half of this year's earnings were 17 billion 500 million and 2 billion 500 million, than the same period increased by more than ten percentage points. What does this mean? Maybe some friends will say, why online everywhere said Jingdong and we suffered capital chain tension, that is because the Jingdong to build logistics, where customers want to do its own brand, which is to spend heavily to build the course, but it does not mean that every guest and Jingdong is not profitable, but it is through a few of the big promotion, the Jingdong's market appeal is more and more big, otherwise it will not be Tmall, Dangdang, Suning so many businesses in the Jingdong's own anniversary Monday, this is because everyone can see the intentions behind the low price promotion strategy: enterprises with a portion of the profits back to the user, and strive for more market transactions, this is a kind of retreating in order to advance the commercial methods, and this method has been verified by the success of the Jingdong.
is not the purpose of promotion, market pricing power is for
some people may say that even if businesses are to price promotions to market share, it is always not a long-term solution. After all, businesses want to develop, profit should be a priority among priorities. Yes, the price competition between businesses is not a long-term strategy, that they know more than we think, in fact they are not the only market share, but the share of commodity pricing, the Jingdong's gross margin has been criticized by everyone, compared to other manufacturers 30 percent gross margin, Jingdong 15% gross margin is indeed a bit too low, but Liu Qiangdong has not.