Appliances Association: E-commerce misleads consumers at a low price

On August 15, Jingdong initiated the largest price war since its establishment. Although Jingdong said that it was a war for Suning and set up a "Taking Suning Headquarters", but after high-profile participation by Gome, Dangdang, and Yixun enterprises, it eventually evolved into a large-scale domestic commercial war.

Price war harms industry safety Xu Dongsheng, secretary-general of the China Household Electrical Appliances Association, said in an interview with China National Grid that e-commerce companies have repeatedly launched irrational "price wars," disrupting the normal market order and hindering the sustainable development of the circulation industry and home appliance industry. "Price wars on the surface have brought short-term price concessions to consumers. In essence, they have brought far-reaching negative impacts on businesses and have jeopardized the safety of industries and industries."

Well-known financial writer Wu Xiaobo pointed out that the initiator of this price war is the circulation business, not the manufacturer, and therefore it can only bring about changes in the business model and consumption habits, and it is impossible to promote technological progress.

“In the course of more than 30 years of development in the home appliance industry in China, the 'price war' has occurred many times, but it still has few winners until today,” Xu Dongsheng said. “Without a reasonable profit, companies lose the driving force for sustainable development. , can not complete product innovation, promote industrial upgrading; consumers do not only need the lowest price of that type of product, but the bottom line of price cuts will mislead consumers to only pay attention to the price of the product, ignoring product upgrades, service upgrades A new experience."

Should return to the rational competition of traditional home appliance retail enterprises, should not be involved in the price competition without bottom line, but should put the competition on how to reduce costs, improve profitability, enhance consumer experience, and guide consumers to buy more innovative Sex, more energy-saving, environmental protection, more advanced and more representative of advanced productivity products.

Xu Dongsheng appealed that the circulation industry should return to rational competition and focus on controlling the density of stores, enhancing consumer experience, improving logistics, IT, etc. in order to achieve healthy and sustainable development.

As of the beginning of this year, Gome's total number of stores has reached 1,657, and only 282 new stores were opened in 2011; the number of Suning stores has also exceeded 1,700, and in 2011, more than 400 stores opened.

Previously, there were also opinions that the rapid expansion of Suning stores was a strong response to Gome's strategy of restarting the expansion of Dazhongzhong and Yongle's dual brands, but today, the economy continues to slump, real estate volume shrinks, and the home appliance industry stimulus policies gradually expire. There has been no emergence of consumer spending, and direct consumption has been advanced in advance. “If traditional channel providers still ignore the tensions in the capital chain, and they ignore the density of high-speed expansion of physical stores and engage in “irregular burning” to participate in irrational price wars, they will gradually lose money. The ability to continue to develop," Xu Dongsheng said.