Electricity Business Appeal Should Abandon Price War

Recently, Geng Guixian, chairman of Gome Online, wrote an article on “E-Commerce Words” that mourned the “disease” of the e-commerce industry, causing many netizens and industry insiders to look around. “A butcher knife that has been losing money year after year but still tirelessly waving prices; Yearly losses can create beautiful books and data; losses every year can also win the favor of financing.” You Gui first defined the “8·15” price war last year as “having left off too many paintings.” "It alludes to a pseudo-price war initiated by e-commerce companies such as JD.com and calls for sound development of healthy operations in the industry."

Qi Gui first sorted out the “down” e-commerce companies: Some of them had a surname “Group” (group buying site). They were young and should have a better future. They should bring more innovations and ideas; The surname "vertical" (vertical electricity supplier), which is very senior, should have a more elaborate operation and should have cooked a bigger piece of cake. However, "the slaughter that could not have reached a long-term barbaric price war fell on this land and disappeared."

You Guixian thinks that if you let the price war kill everyone, leaving only one or two home appliance makers, then you can imagine that "the birth of monopoly, there will be no "consumer is God" argument." He called on the industry to abandon the "sales tricks and swindles faced with the price of obesity", return to the "retail" e-commerce origin.

Gome and Suning recently disclosed their annual reports. The two traditional chain companies were affected by e-commerce and their performance was not satisfactory. Although GOME's annual e-commerce sales increased by 119.1% year-on-year to 4.410 billion yuan (including tax), the loss was as high as 597 million yuan.

Last year, Suning's sales revenue reached 16.716 billion yuan, an increase of 157.9%, but Suning also complained in the annual report: a large number of Internet companies without cost under the support of offshore capital, purely rely on price competition, the market predatory Possession not only affects the domestic traditional retail industry, but also damages the manufacturing and market norms and order.