E-commerce "price war" behind the **

The industry was crowned with an e-commerce war of 8.15, and with the publication of the NDRC's announcement of the "price war" survey results of e-commerce companies and the admitting errors of JD.com and Suning, they have died down. But the market's discussion on this matter has not stopped. Many people are still tangling up what kind of "price war" this is. There is not much attention to the connotation and profound meaning behind it. It is just taking it as the past. In the same way, prices are used as a means to snatch commercial warfare on the market.

However, with the passage of time, the disclosure of a lot of related information, the true essence of the so-called "price war" has already emerged. The so-called "price war" between Jingdong and Suning is actually the development of online shopping to a certain stage, and the entrants are competing for the status of the industry.

The price war is just a gimmick

How to define this so-called "price war." Most people still regard Jingdong and Suning’s business warfare as price wars for online users. Moreover, the government's investigation into the investigation was based on "suspected original prices and fraudulent consumers." If so?

After careful analysis, we can see that the so-called "price war" is just a gimmick. First, regardless of Jingdong's "big household appliances is absolutely 10% lower than the price of Suning stores," or Suning, "the price is higher than Jingdong, will give the buyer has already paid twice the difference to pay the difference", saying is untenable. The root cause is that the prices of both parties are not comparable at all. In general, JD.com and Suning have purchased large quantities of terminal vendors. The suppliers provide them with customized products. The models are not comparable. Therefore, whoever is cheaper or more expensive than others cannot be compared. It has been seen which consumer has received double compensation through parity. It is not that Suning is cheaper than Jingdong, but you cannot find comparable products at all. Logically speaking, you are 5% lower than me. I am 10% lower than you are self-contradictory. It is unreasonable.

The second is the so-called zero profit advocated by JD. It even says how much resources are used to benefit consumers. In fact, it does not exist. According to the 15 products checked by the relevant departments, the gross profit margin of these products was as low as 4%, with a maximum of 22.43%. Even after the promotion, the highest gross profit rate reached 10%. Since Jingdong launched this “price war” to start from zero profit, then there is no real profit, and there is still a price war. It is just trying to make the incident more attractive. Nothing more.

Therefore, it is impossible to say that the current Jingdong and Suning confrontation is simply a price war. The so-called price war is only a representation, it is just a gimmick. The real goal is that the traditional online shopping companies and physical shopping companies compete for new or establish a status of the online shopping industry, a collision and contest.

As for the investigation by the relevant government departments, it is no problem to start with price fraud. On the one hand, whatever the underlying cause of the incident is itself the appearance of price fraud. Therefore, the survey must start with the price to be able to restore the real purpose behind it; on the other hand, only by taking the price to start, can we have a target for investigation.

It can be said that Jingdong and Suning’s online business battle is, on the surface, a price-based competition. The real purpose is actually to create momentum and attract attention, and guide people to change their inherent shopping patterns in order to expand household electrical appliances. The proportion of online purchases. In terms of nature, it is the battle method that traditional online and offline companies use to seize the opportunity of the online shopping market. Both parties have the same interests – attracting more consumers to online shopping and conflicting interests – who will be The future online shopping market will dominate.

The inevitable result of the trend

Why is there such a price war as the appearance, the real purpose is to guide the change of shopping mode of business war? There are two aspects of the problem that deserve our special attention:

First, the business model is about to be a major change node. As we all know, home appliances (color TVs, refrigerators, washing machines, air conditioners, etc.) have experienced the professional management of professional stores as the dominant factor, and to the current transition to a business model dominated by chain supermarkets. Under the background that online shopping is gradually accepted by people, the trend toward online shopping has become very clear. The commercial capital that saw this began to be laid out as early as a few years ago. For example, Suning's e-commerce platform as Suning's B2C online shopping platform began operations on August 2009; Gome also realized that the Gome Mall, an online platform developed by its own team, was not able to compete with competitors such as Suning Tesco and Jingdong Mall. The rapid development. So in November 2010, it spent 48 million yuan to acquire 80% of shares in Kupa Shopping Network, trying to achieve leadership in the B2C field through the power of capital integration. Although the princes of each road were laid out earlier, before the Jingdong and Suning clamours were made, the products of the major appliances were still in a period of potential due to constraints such as the construction of the online shopping platform. At present, not only the distribution channels of many e-commerce companies have been improved, but also the after-sales service system has been basically completed. The obstacles of large household electrical appliances from the offline to the online have already been cleared, and it has become a matter of course that consumers will be guided.

Second, online shopping has entered the need to further deepen the node. Online shopping has developed for a long time. At least two aspects have come to the point where breakthroughs are required. On the one hand, online shopping has been concentrated on consumer goods such as dressing and eating for a long time, and durable consumer goods such as home appliances have been on the one hand. People are still accustomed to buying offline stores. If online shopping does not break through this point, it will not be able to achieve a change as a mainstream consumption model. Moreover, the safety and popularity of online shopping on instant consumer goods also discourages people's concerns about choosing durable consumer goods; on the other hand, online shopping has long been concentrated in groups after 80 and 90. With the popularization of the Internet and the change of ideas, the consumer groups of online shopping are gradually spreading after 70 and 60. Among the consumer groups with higher cultural level, even after 50 years, they have joined online shopping. The expansion of consumer groups will inevitably also increase the number of online shopping targets.

In the context of the arrival of the new Internet era, Jingdong and Suning chose to focus on “price” and launched a massive tongue-in-cheek battle, which not only created a huge wave in the industry. Even some undisclosed suppliers also participate in it. For consumers, the battle between JD.com and Suning is more like a wonderful drama. It gives consumers a universal education class for home network purchases, which helps the popularity of online shopping in the new Internet age.

Who is the biggest winner

The Jingdong and Suning Combat Act dramas have ended up after the relevant government departments involved in the investigation. Although the relevant government departments stated that they would impose penalties on participants in business warfare, neither Jingdong nor Suning would prevent them from achieving tremendous results in this battle. It would spread all over the Internet and various media, allowing Jingdong to Suning made enough eyeballs with Suning.

In terms of advertising effects, it is impossible to buy money. Regardless of whether it is Jingdong or Suning, the advertising costs invested in various media are not less than tens of millions, and as many as 100 million yuan. However, such advertisements are not watched by people and they are ignored. It is hard to stir up the audience. interest. This time, the two sides have different tongue and lip swords, which are not only seen in the headlines of various media, but also become hot topics for people after dinner. This is the news effect of how much money they can't buy. Of course, this is not the most important gain.

The most important gain is also that Jingdong and Suning passed this clash, although they are not higher than you. However, the two sides have established their status in the area of ​​online shopping. In particular, Jingdong Mall, as an emerging online shopping platform, has had a strong influence before it. This time it was able to confront the leading leader Suning in the field of household appliances, which itself had a sensational effect and greatly enhanced its position in the field of home-network procurement. Although Suning has always been a leader in the field of household appliances, it has been relatively low-key since entering the online shopping field. This time blocking Jingdong also sent out obituary articles for its e-commerce traders. In this sense, Jingdong and Suning are the biggest winners.

It is not difficult to find that none of the leading players in any industry is a single player. Basically, both players are growing up in the competition. McDonald's and KFC in the fast food sector, Coca-Cola and Pepsi in the beverage industry, Boeing and Airbus in the aviation manufacturing sector. In the field of home appliance circulation in China, Gome and Suning have always been shoulder to shoulder. However, in this leading battle for online shopping, Jingdong suddenly made a fight with Suning, apparently competing for the leading position in this emerging industry. Jingdong and Suning can become the leading power grid purchases in the future, and it is still difficult to make a conclusion.

It is worth pondering that GOME, which has been on par with Suning in physical stores, apparently slowed down half a beat. Because, Jingdong has come up with the name of Su Ning, Suning is also tit for tat on the online and capital markets, but the country is watching lively. Many media are unsure of pulling the country into the country, saying it is a three-nation killing. In fact, Gome is truly aware of the root of the problem. When it began mass strikes, the government has begun to intervene to calm down the situation.

This post-knowledge of Gome is worth pondering. For Gome, which competes with Suning offline, it lost an excellent opportunity and obviously fell under the competition. If Gome is still following the strategy, after the rapid rise of Jingdong Mall, Suning will become the leader of online shopping. Gome will only make adjustments in strategy and speed up the pace in the online shopping field. Only then will the true three-nation killings emerge. Otherwise, Gome will fall into the second echelon in the field of online shopping, and even affect the status of the rivers and lakes under the line.

Printed Circuit Board assembly sometimes called PCB Assembly(PCBA).
The bare board is populated with Electronic Components to form a functional. In through-hole technology, the component leads are inserted in holes surrounded by conductive pads; the holes keep the components in place. In surface-mount technology (SMT), the component is placed on the PCB so that the pins line up with the conductive pads or lands on the surfaces of the PCB; solder paste, which was previously applied to the pads, holds the components in place temporarily; if surface-mount components are applied to both sides of the board, the bottom-side components are glued to the board. In both through hole and Surface Mount, the components are then soldered; once cooled and solidified, the solder holds the components in place permanently and electrically connects them to the board.

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