Large B2C Website Is Hard To Fight Price War &Nbsp; Small Shop Is Injured.

In recent years,

Correspondingly, the good prospect of online shopping has also attracted the favor of various capitals. Some large B2C shopping websites have sprung up.

These large B2C shopping websites that invest more than 100 million yuan are strong, mainly distributed in clothing, home appliances, digital, books, cosmetics and other industries.

In order to cultivate customers and increase market share, they are crazy to "throw money" to promote sales.

The first thing to be affected is the small shops in related industries.

"Online business, prices are very easy to compare.

They (big B2C shopping websites) sell at a low price for a long time, and we are bound to be affected. Business is hard to do.

Recently, a shop owner who sells small household electrical appliances reluctantly told reporters that he was going to turn off his store.

In a small room, small household appliances such as air blower, fan, juicer and so on are stacked in three stories and three stories outside.

If you want to take out an electrical appliance at the bottom, you must remove the electrical appliances stacked on the upper floor first.

This is a warehouse of four drill shops for small household appliances, located on the two floor of a residential district in West Lake Cultural Plaza, Hangzhou.

The shop originally rented a small warehouse, but in order to save costs, the boss moved the warehouse to his home.

When the last shipment was sold out, the boss was ready to turn off the online store.

"We sell a 120 yuan rice cooker online, with a gross profit of only about 5 yuan, while selling a nearly 200 yuan kettle with a gross profit of only about 3 yuan.

I told my friends that they all felt incredible.

In fact, online sales also need some cost.

For example, we have to pay the rent of the warehouse.

Because we are worried that something will be damaged in the delivery process, we also need to buy cardboard packaging.

Talking about the intention of closing stores, the head of the shop told reporters to spit bitter water.

Like the situation of this shop, perhaps because of low profit reasons, some of the online shops selling small household appliances have been turned around, and some of them have been shrinking considerably.

Behind this is the fierce price war launched by large B2C shopping websites.

At present, there are many home shopping websites on the Internet, such as Jingdong network, new egg net, Cuba shopping network, Suning Appliance and so on.

When you open a website at random, you can see activities like "limited time rush", "special zone", "* single Hao Li" and so on.

Price war: a difficult problem in network channel management

"Brand small household appliances are standardized products.

Customers can compare the prices of physical appliances stores according to brands and models.

In terms of price, the advantages of the network are more easily reflected.

So I chose the industry at that time.

Many of my buyers go to the local appliance store to see them, and then place the order again.

The above household appliance shop leader introduces.

However, it is also the reason that the price of the seller between the brand and the model is also very easy to compare.

Looking for low price businesses, naturally become buyers rational choice.

What follows is that the price war is becoming more and more intense. The powerful B2C shopping website has gradually become the protagonist.

For this reason, a manager of a brand small household appliance Hangzhou branch said: "in traditional stores, manufacturers will control the retail price of products, and if they are too low, they will impose a fine on stores.

However, online businesses come from all over the country, and there are many ways to purchase goods. There is no entity store, so it is difficult for us to check.

So the price system is chaotic.

In order to achieve annual sales performance, some businesses set prices very low. Once the price war is launched, the profits of sellers on the Internet are hard to guarantee.

In fact, in addition to standardized household appliances, there are still many industries and areas in which large B2C shopping websites play price war, and some small online shops are also implicated.

For example, brand cosmetics, cell phones, books, brand sports shoes, name list and other industries.

"In Dangdang, Jingdong and other websites, sometimes books sell 3-4 fold, feel that they sell books at a low price, do not care about making money, but as a means to attract, accumulate and cultivate customers, a bit like advertising in the media."

A friend who sold a small book shop not long ago told reporters.

Small shop avoids price war to have survival space.

"Price war itself is a kind of market survival of the fittest, can change businesses everywhere, but the good and bad situation.

And after the shuffle, prices will rise accordingly.

Wu Shiqi, an associate professor at the school of business administration, Zhejiang University of Finance and Economics, pointed out that for a strong network businessman, long-term low-priced sales will not affect its long-term development.

Usually these enterprises will adopt the strategy of "levee inside the embankment".

For example, diversifying business and selling high margin commodities.

Reporters noted that many large shopping websites now carry out diversified operations.

For example, the Jingdong mall, which was the main digital product, also sold clothes and health care products.

When new retailers enter the market, they often adopt the strategy of "penetration pricing", that is, in order to attract consumers, they will lower the price at the initial stage of product listing (or business operation), and then increase the price until the product penetrates into the market and opens the sale (or the corporate brand is recognized by consumers).

Statistics show that although most of the sales of large shopping websites are secret, most of them are heavy losses.

An insider told reporters frankly that at this stage, everyone is making the future and burning money.

In this regard, Wu Shiqi said that if small online stores want to gain advantages in competition, they should maintain product differentiation and attach importance to user experience.

For example, like the consultant service of best buy, we choose to buy products for customers.

"Otherwise, they own and sell their own brand products; otherwise, they should choose differentiated operation and sell some distinctive and personalized products.

The small shop only has to avoid the price war, only then has the survival space.

A shop owner said.