Gome denounces JD.com for "burning money" at low prices

Recently, Gome President Wang Junzhou announced that he will enter the home power grid purchase market with an absolutely low price strategy, and accused JD.com of "burning money" is not sustainable. Analysts pointed out that "burning money" is an indispensable stage in the development of e-commerce. The current general situation is that Gome Suning is afraid of JD, and JD is also afraid of Gome Suning. One party is attacking from offline to online, and the other is penetrating from online to offline. The digital field of home appliances is bound to form a competitive trend, and the three parties will have a battle.

Many analysts disagree with Jingdong's low-cost burning. Some analysts believe that emerging websites must go through the stage of burning money, like the previous portal websites such as Sina, Sohu, Netease, etc., and then the rise of Alibaba. All have experienced it, even today, the network is so developed, it still needs Go through this cycle. But this also revealed the frustration of some Internet companies. Regarding Gome's accusation, the reporter interviewed JD.com by email. As of press time, JD.com has not yet responded.

Wang Rulin, deputy director of the Mobile Commerce Special Committee of the China E-Commerce Association, also told reporters that money-burning is a normal phenomenon in the field of e-commerce. Enterprises only use money-burning to build momentum to attract more customer resources and develop rapidly on a large scale. If such a commercial company wants to develop, it must rely on burning money to accumulate a lot of popularity and buyers to enter the mall. So burning money is an inevitable phenomenon of e-commerce.

However, Wang Rulin pointed out that JD Mall also has to blame, that is, the excessive price war. The book price war between Jingdong Mall and Dangdang, which violates unfair competition in the long run, will also cause dissatisfaction with regular publishers. In addition, from the author's perspective, if the author's new book is sold at 40% off, it is also disrespectful to the author.

Traditional enterprises have launched e-commerce

E-commerce marketing has become a very popular or indispensable tool nowadays. Some insiders said that traditional enterprises cannot avoid e-commerce.

After Gome acquired the home appliance e-commerce company Kuba in November last year, and Gome's own brand online store was officially launched in April this year, Gome announced its new goal of its own brand "Gome Online Store" yesterday. Wang Junzhou, President of Gome, said: "In the next 2 to 3 years, Gome Online Store will account for more than 10% of Gome's revenue and more than 15% of China's online shopping market."

Suning said it sold 2 billion online last year and said it will win 10 billion this year. Suning Appliance, together with IT giants such as IBM and Cisco International, has jointly developed an e-commerce website "e-Go."

However, for traditional enterprises to do e-commerce, there are some issues that need to be noted. Yang Weiqing, president of iResearch, believes that the primary strategic thinking of traditional enterprises to develop e-commerce business is the "integration" of internal and external resources. On the one hand, traditional enterprises are optimistic about the prospects of e-commerce development and are unwilling to miss the opportunity; on the other hand, e-commerce is an emerging industry after all. Traditional enterprises have concerns about operational risks, so they focus on themselves with a cautious attitude. Business areas that are good at, and outsource non-excellent ones.

Suning, JD.com and Gome must have a battle

Wang Rulin pointed out that JD.com, Suning, and Gome are bound to form a competitive trend in the field of home appliance digital. The price war between JD.com and Dangdang is actually a small piece of cake for JD. The biggest fat is in the field of home appliances. Suning and other traditional enterprises will inevitably form a competitive trend, so their competition is inevitable.

A careful netizen said that he had inquired about the same product on JD.com, Gome, and Suning, and found that in terms of price, this product was cheaper than JD.com, JD.com had the second highest price, but Suning had the highest price. The speed of the goods, so in the case of a difference of only a few dollars, I still prefer JD.com, which only operates e-commerce. If there is no great price advantage, I will generally not choose other.

Previously, Dangdang Li Guoqing Weibo pointed out that Gome and Suning Tesco rushed into e-commerce, and found that half of the home appliances and 3C products on their website were lower than the Jingdong website. It seems to be moving. I learned from home appliance brands that Gome Suning is 8 points lower than JD.com in purchasing costs.

Home appliance analyst Luo Qingqi believes that Gome and Suning are supported by physical stores, and they undoubtedly have more advantages in purchasing costs and have more say.

However, Sun Jianbo, COO of COOL, said that the procurement cost is only one aspect. If you can't compete with the traditional store with integrated costs, how can you beat e-commerce? The latter is inherently subversive.

And whoever wins, such as Gome, Suning and JD.com, Wang Rulin said, I am afraid that it will take some time to experience and compare. Suning's current advantage is that it has a matching after-sales service system, which is relatively sound. After Jingdong financing focused on the construction of modern logistics, Gome's online advertising was also very loud. The three parties have their own advantages.

However, with regard to its fierce competition, Wang Rulin said that as e-commerce experts, they hope that they have fair competition, civilized competition, and should have the quality of an entrepreneur. Do not fearlessly blame and debase each other.

Yuan Ping, editorial board member of Sina Finance, pointed out that at present, the sales of five major online shopping appliances on JD.com, Suning.com, Newegg, Amazon.com and Dangdang accounted for more than 80% of domestic home appliance purchases. Sit and watch the deer die.

Netizens' views:

Since JD.com and Gome are all issues that consumers are very concerned about, many netizens also expressed their views on the "war" between Gome and JD. The reporter excerpted some wonderful views:

Li Youren: When you do n’t want others to impact your interests, you will bombard the business model of others. Your own profit margins, in fact, you should know that no one will buy or sell money.

chenpeng: Gome store to see the goods, Jingdong to buy. Both are quite useful.

Hu Huali (@ ad-tank): Chinese Marketing

Liang Bin robinliang: With the rapid advancement of Suning ’s offline business and the craze of small e-commerce companies, the era of oligarchs is completely over, but it ’s okay to share the soup

Wu He: Gome's mistakes are unclear concepts! Gome, Suning, etc. are all based on the dealer's entry point as a profit model. The pricing power lies in the dealer. In order to maintain profits, how can the price be reduced on the basis of Gome and Suning's high point? ! And e-commerce companies such as JD.com are C2C's direct sales, and the pricing is at their own discretion. At least the discount, the entrance fee, the sponsorship fee, the facade rent, etc. are reduced! The advantages are obvious!

Jiang Qi: Actually, the price of JD.com is not low anymore. There are indeed a number of models that are higher than the actual selling price. I think JD.com ’s advantage is that it has a wide range of commodities.

foxlvpipi: It's unreasonable to blame the opponent on his own position.

Wang Tielei: What does JD.com do not burn? It is a fact that Jingdong's current price is lower than Gome. It is an indisputable fact that the rise of Jingdong disturbed Gome. If Gome didn't recognize it, then this "shelling" would be "three hundred and two without silver here."

Yi You Tianxia 1U-COM: Seeing whether it is dying in price war or eternal life in protracted war.

Ding Ziheng: The price advantage is a convenience, and the enterprise cost is another aspect. Compared with the operation cost of many stores across the country, JD.com's advantage is too obvious.