Sales Are King'S &Nbsp; Electricity Providers Indulge In Low Price Promotion.

A month ago, the "double 11" singles day, crazy online shopping has led to the entire industry behind the technology and distribution platform almost paralyzed, let people see.

30 seconds, a villa in Shanghai is 2 million yuan.

This is the record of "double 12" after the "singles day".

Maniac

Taobao official data show that during the "singles day" period, the total volume of Alipay trading in Taobao and Taobao stores exceeded 5 billion 200 million, which is more than the 6 day retail sales volume of shopping paradise in Hongkong.

Taobao's own "double 12" brings 4 billion 380 million yuan to Taobao in one day, and flows into 120 million users, which is equivalent to the traffic volume of nearly 8000 stores.

Crazy is not just Taobao.

Tencent, Amazon China, Jingdong, Dangdang, fan Kong, Lok cool days and other business platforms have been "staggering promotion", starting the end of the promotion war.

Slogans without money can be found everywhere.

Dangdang started the "0" profit activity of hot commodities for daily necessities in early December, and the Jingdong mall also called the slogan "zero profit of the whole network" under the theme of "Christmas Storm".

Why are most electric providers so obsessed with low price promotion?

Chen Shou, an international analyst at Analysys International, told reporters that sales of traditional retail and electricity suppliers are relatively concentrated in the fourth quarter of the year.

The same is true under the same line. Now every shopping mall is also offering discount.

Therefore, the focus of sales promotion is greatly influenced by seasonal factors. First, the consumption demand is strong in the fourth quarter, and two is the last selling season in a year.

"But once consumers are accustomed to low price promotion, this mode will be difficult to change in the short term."

New seven days CEO Zuo Yingjie also told reporters that as the mainstream of online shopping crowd is young people, such as "singles day" this kind of Festival approaching young netizens is easy to resonate, coupled with some very attractive form of promotion, it is easy to stimulate their consumption desire.

"For electric business enterprises, one way is to increase sales through a big low price card in a short period of time, and one is to optimize sales through the detailed optimization, but the effect will not be very obvious. Which one will you choose?" an electric business senior counter reporter.

This looks like an old way to get market space by burning money and losing money.

"Low price can be regarded as a good way to gather popularity. The sales volume thus rushed may be a good story for the capital market.

Take Jingdong as an example, its first goal is sales, not profit, and only the first place in the industry. It will be eligible to use the sales valuation method in the future when calculating at IPO. Compared with the optimization of financial indicators, the former will be even more difficult.

The people told reporters.

Behind promotion

After the crazy promotion, what can it bring to the electricity supplier besides a large number of users and orders?

"Unless the price is lifted up and the price is reduced, it is hard to make money for every big promotion.

Basically, everyone is not profitable, and it will be quite successful if we can break even. "

An electric business enterprise senior told reporters yesterday.

There are also complaints from the electricity supplier that although the annual singles day and double 12 sales are hot, consumers will eventually remember that the store is still Taobao, but it is hard to remember one of the mass promotion shops.

And frequent promotions have begun to make the electricity supplier somewhat "unable to eat".

"Double 11, double 12 big promotion is really too dense! Plus Christmas and new year's promotion, if every big promotion will follow suit, it will undoubtedly upset the website's own marketing plan."

CMO, Xu Lei, can't help but sigh to reporters. "In fact, e-commerce should be as low as possible every day to achieve a low price, not too many frequent peaks and trough changes, which is a huge challenge for its own supply chain system and socialized resources."

Crazy sales promotion "come and go quickly", but the electricity supplier is more like dragging a residual leg in the background of high growth.

Every big sales promotion, goods shortage, goods accuracy rate always appear problems, and after the peak, the following is often the turnover rate increases, customer service pressure increases.

"Businesses are also in a dilemma. In a few sales seasons of the year, some are making profits, some are selling or clearing stocks, and rhythm control is different, but sometimes sales are not within the scope of their own controllable consumption. If the rhythm is not well controlled, the so-called promotion can only be a short time to attract users' impulse, and it is not much useful."

Xu Lei said.

"It's kind of like digging your own grave."

Zuo Yingjie told reporters.

He admits that many new business enterprises including the new seven day electrical network have gone through or are taking the wrong road. "Sometimes the sales of big promotion days can almost reach dozens of times and hundreds of times of daily sales. The huge gap has stimulated many electricity providers' nerves. It is not ruled out that some businessmen are overindulge in mass sales and take a detour while consumers' user experience is decreasing."

He also reflected that he could not focus the operation on a day's work to about 10000000 sales. Keeping profits in daily sales and grasping the user experience were the foundation.

Xu Lei also thought: "the rush of orders can be bought out of money, but the healthy development of enterprises needs time to come out. For example, the process optimization and the setting of key indicators are reasonable, all of them need time and personnel to do a lot of work."

Yao Jianfang, an online shopping and rights protection expert at the China Electronic Commerce Research Center, expressed concern to reporters: "at present, the development of e-commerce has not seen a benign development. Promotion has become a means for consumers to gain eyeballs and competition. However, promotion is not a long-term plan for the development of the electricity supplier, it will also cause consumers' aesthetic fatigue."

In the view of Li Chengdong, an analyst at PDA, the electricity supplier is still in the stage of competing with the offline retailers for consumers. This is a process of establishing consumption habits, and promotion is the most powerful means.

But when the electricity supplier is mature, frequent promotions have a negative impact on the brand, which is not conducive to the brand image.

After all, no enterprise can achieve sustained development by losing money.