Suning, Gome, Jingdong, Price War Intensified

"With the other way, we should repay the same thing" - the Jingdong's reputation as a famous low price promoter to attack Jingdong has become the consensus of Suning and Gome's two major home appliance chains.

Li Bin, executive vice president, said to the South yesterday that Yi Kai launched an unprecedented "full network parity month". Han Depeng, general manager of Gome online shopping mall, also stressed to reporters in Nandu that Gome's online shopping mall is unchanged in its low price sales strategy, and will continue to maintain the 5%-15%'s full network price advantage.

Gome said that the new ERP system has supported more than 400 cities and domestic orders at the county level or above.

At the same time, suning.com and Gome online store launched a "logistics revolution" to defeat Jingdong.

Li Bin disclosed that it is expected that nearly 1800 stores across the country will realize the self promotion function of stores this month.

Suning's 4000 after-sales service outlets will also gradually increase its distribution function to become a delivery point. "Where there is Suning, there must be suning.com."

Can Suning Gome, who is brave in its own revolution, regain control from Jingdong?

Price war is on its way.

The original price of 579 yuan perfume is only 199 yuan; the original price of 999 yuan pull rod box 60 percent off only 399 yuan......

The Jingdong mall, which is under the banner of "the strongest month of celebration in history", has recently announced that from June 1st -7 1, Jingdong's total profits of 0 yuan have been accumulated to 1 billion yuan, plus the 500 million profit reduction plan launched in early May, and 1 billion 500 million has been invested in 1 billion 500 million promotions for Jingdong within two months.

This Monday,

Electric City announced that before investing 200 million yuan to subsidize businesses on the basis of additional 200 million subsidies to consumers.

Dangdang spent at least 300 million yuan to join the war; Tencent's Yi soon announced more than 500 million yuan, and the new egg announced 300 million promotions.

The electricity price war, which started in April, is becoming more and more fierce.

"If we let Jingdong continue to develop so that our share of physical stores will be carved up by these enterprises."

Suning Vice Chairman Sun Wei Min's concern is not empty talk - the Jingdong mall, which is now planning IPO, this year's revenue target is 47 billion yuan, an increase of 100% over last year's annual sales of 21 billion yuan.

Suning and Gome's counterattack are also heavy punches.

Low price to grow and expand.

"Suning.com and other electricity providers before the price war resource input is quantitative, no matter how large magnitude, it is difficult to cover all categories of all commodities, billions of promotional gimmicks so that consumers are numb.

Suning put forward the "whole network price" way, and really put the price war on the ground, which is the continuation of the earlier promotion of unlimited sales promotion. Li Bin, executive vice president of suning.com, said that since the high-profile start price war in April, suning.com has invested more than 2 billion of its promotional resources.

Han Depeng, general manager of Gome online mall, stressed that Gome is not afraid of price parity. "Because of low price and free delivery and installation of localized logistics, Gome online store maintains more than 300% sales growth in refrigerators, air conditioners, color TV and other commodities."

Han Depeng said that Gome will continue to maintain the 5%-15%'s full network price advantage to ensure that the whole network is selling at a low price.

The lowest price of color TV is 7.7 fold, Samsung's 40 inch LED color TV group purchase price is 3588 yuan, and Toshiba 46 inch LED color TV group purchase price is 4688 yuan.

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Launching logistics revolution from point to area

Behind the price war, suning.com and Gome online store are even more popular.

"We hope to defeat Jingdong by its huge logistics system.

Suning.com people have revealed to the south that, recently, Suning's two quarter national conference, Suning Appliance chairman Zhang Jindong made a clear plan to the national Suning: where there is Suning Appliance, there must be suning.com.

According to Zhang Jindong's request, Suning branches must quickly enter the city in the whole country to start suning.com's brand awareness. While accelerating the construction of the nationwide logistics express network, we should maximize the three advantages of Suning's regional coverage, backstage support and brand leader in the whole country, and quickly cut into the blank market of many online shopping, and finally achieve the absolute advantage of the nationwide electricity supplier industry.

Suning asked local branches to promote suning.com's local operation as the biggest flagship store this year, and to incorporate suning.com's sales data in various regions into the performance appraisal of the general manager of each branch.

And just completed the Gome's wholly owned holdings of Gome, it will fully promote the docking of its two major platforms, the Internet and the logistics system.

According to sources, by the end of September this year, two electric providers will complete the comprehensive docking of logistics supply chain and IT system. At the end of the year, two enterprises are expected to formally merge.

"Gome online mall will take 50 billion of the sales scale to build and support the business system of architecture, personnel, technology, logistics and other aspects," Han Depeng said. The localization of national logistics and distribution and professional after-sales service system is the advantage of Gome online shopping mall.

Jingdong speeds up IPO pace

Suning Gome hopes to use their big investment, big sales promotion and great reform to curb the momentum of Jingdong.

Gome report shows that last year, its two electricity supplier entities, such as the Internet Bank and the Gome online mall, lost nearly 400 million yuan - but this did not interfere with Gome and Jingdong's determination to "fight to the end".

Under the attack of Suning and Gome, the refinancing of Jingdong, which is driven by capital, is an inevitable choice.

In May 30th, the Jingdong mall held a public offering conference in Hongkong, first making public its financial data: last year's income was 21 billion 200 million yuan, gross margin was 5.5%; cost accounted for 6.6%, advertising accounted for 2.3% (advertising expenditure last year was 490 million yuan), technology and management cost rate of about 1.5%, net loss of 5% or so.

It is reported that Jingdong is likely to carry out IPO. in September as soon as possible. There are people who do not want to be named. It is pointed out that the market expected for IPO in Jingdong mall is generally in 2013. IPO is affected by financial pressure caused by large-scale promotional activities and warehousing and logistics construction.

"Under this situation, Jingdong mall continues to carry out promotional work on a large scale, hoping to win the attention of investors."