Footwear E-Commerce Price War Trilogy, Characteristic Of "Smoke Anniversary"

Since August 14th, Jingdong's Gome price war has won many eyeballs.

But the outcome was not so good, and the majority of the "war of words" caused controversy inside and outside online shopping.

Why did Suning and Gome invest heavily in doing business, because they clearly felt the power they gave them.

Coincidentally, footwear as the most stable, least risky, and the earliest consumer goods, "electricity supplier" has a huge market, has a share, profits and prospects, and the "price war" of the footwear business has become the most gorgeous, oldest and most cool scenery on the fertile soil of the four.

August is a good harvest season.

It seems a bit out of step for us to not celebrate the anniversary, especially in the four month of the smoke.

Browse the industry's leading shoe channel, Le Yue, Le Tao, shoe store and so on. It's easy to buy 8th Anniversary shop: easy shopping network to make a profit of 80 million with 100 stores, grab red packets, draw awards, cash back, kill one second; "good Le buy 5th anniversary": 40 percent off month, 2 shallow shoes 2, sports shoes 2.9 folded, 7th night special shoe lovers 1.4 fold; "happy anniversary": price in the end of a variety of brands 5000% of the shoes up to 9 yuan, shoes are also crazy, 400 yuan to buy two pairs.

The "price war" of footwear business operators has worn the "anniversary shop" hat this month.

"Price war" is wearing hat is a good thing, this is marketing means and profit channel.

But the vicious competition is not so good.

Behind the analysis of the "anniversary shop" is the risk of "knowing that the tiger has a tendency to move toward tiger hill".

The beginning of "price war": occupy market share

about

Speaking, entering B2C has become a fashion.

At present, a handful of footwear vertical electric providers in China can not say "happy buy" and "Le Tao".

Observing the flow data of Alexa can be found that the "anniversary shop" month, known as "China's largest genuine sports shoes, shoes online monopoly" letao.com website comprehensive ranking 10573; Holle okbuy.com website ranked 4651.

There is no doubt that the market of good Lok is better than that of Le Tao.

The ranking and traffic of the website are the basic index to show the attraction of an electric business.

In this era of pcendent and pcendent Internet access, low traffic volume and continuous low traffic volume are the red light for enterprises to move towards the end of the electricity supplier industry.

But at present, the electricity supplier industry is developing momentum gradually, everyone wants to plow one mu on this land, planting a ridge, collecting a stone and laughing.

With the help of traditional low speed, the most effective way is "price war". Quality, beauty and low price are the common choices of consumers.

And just cheap is a very obvious feature of online shopping, and it is also the most powerful weapon.

As a result, low price online shops are popular, and the prices of finished shoes begin to grow up with the big stream.

Most of the time, big entrepreneurs are sitting on the floor.

So even if there is no profit, giving up e-commerce is a loss for the finished shoe enterprises, and how much it can stabilize the market price of online shopping, so that the finished shoe enterprises can be divided into a "cup of soup", and let the finished shoe enterprises have already integrated into the trend of e-commerce, and occupy a certain market share.

Middle price war: stimulating consumption

The electricity suppliers will fight for money and do not rule out the strong support for successful financing.

It is a great courage and strength for the next round of financing to hope that the market share will be raised after the fall.

Chinese electricity providers often use the "losing money" model, instead of making profits for the purpose of listing, so they continue to rely on capital driven price wars to get traffic and sales.

The "price war" is not a patent for the footwear business, nor is it a "single tumor" of an industry. It is always dotted with people's lives.

Analysis of the industry, "price war" is an important element of the market economy, it is necessary, as long as it does not spend taxpayer money, do not have to persuade, do not have the right to intervene.

Of course, the positive significance is that "price war" is beneficial to consumers.

We do not have to worry about monopoly, excess profits and the ultimate damage to consumers, because monopoly and excess profits generated by the "price war" will be disrupt by the new "price war".

It is understood that

The gross profit margin is about 20%-30%, of which logistics costs account for 10% of the total B2C price of the whole footwear, and the marketing cost accounts for 30% or even 50% of the customer's unit price.

After deducting the cost of marketing, warehousing and logistics, human resources and other costs, footwear B2C is basically long-term.

The essential attribute of "business for profit only" is obvious at this moment. Through the "price war", it can temporarily stimulate consumption and bring some short-term joy to the sluggish sales.

But it turns out that losing money is not the business goal.

Later stage of "price war": clean up stock

"Inventory pressure" is the most sensitive and sensitive topic in shoe industry in recent years.

The enterprise is like a load of burden, staggering, too much backlog of high stores pressure shoe enterprises can not breathe.

A so-called high risk inventory is like a malignant tumor that will infect the normal operation of the entire enterprise, leading to a slowdown in the growth rate of the industry.

Especially in 2012, the situation faced by footwear B2C is more severe, and the low price products launched by upstream brands have led to the excessive existence of low-priced goods in the whole market, and the gross profit of the industry has been further lowered.

At the same time, due to the continuous increase of logistics and manpower costs, many footwear B2C are faced with dual pressures from capital and goods.

Especially in this year's London Olympic Games, there is no doubt that the high inventory problems of brand shoes and shoes enterprises are inevitable. Lining, PEAK and Anta have opened the "discount season" in the domestic market. The electricity supplier, as a sales channel with obvious characteristics of inventory, can not miss this great opportunity.

Therefore, under the pressure of high inventory, brand image has not been so important. How to digest inventory and obtain capital flow, so as to survive for the mainstream of the market.

But it is hard to imagine that under the pressure of high inventory, the brand building of footwear will become a blank check of gold and jade, and there is no gold content.

With the increasingly fierce competition in the footwear industry and the endless price war, the continuous price war has brought benefits to consumers, but it will bring the whole industry to a quagmire which is hard to extricate itself.

Non brand discount marketing is a big step to grab the brand market, and the brand will face greater threat.

{page_break}

"Return to quality" can make evergreen trees green.

Although some people think that the market has begun to "moderate" now, enterprises can no longer rely on "volume" and should take the initiative to change the business model, only in a more robust and meticulous way to process control, in order to break through the bottleneck of the current high inventory industry.

However, the industry believes that the current price war of shoes and clothing business will continue. From the growth rate of e-commerce, the space of online business is still very large.

However, as the "War Within Three Kingdoms" outcome of electrical appliances has gradually faded out of people's sight, long term "price war" can not solve the fundamental problems, and the quality of products is the fundamental magic weapon to win the market.

Although Le Tao currently has more than 180 brands, it is two times that of Haoyue, but the price of Le Tao's guest is only 200 yuan, and the happiness purchase is over 300 yuan.

The brand is worried that the future of Le Tao will give people the impression of "Internet outlets". The means of low price promotion will inevitably hurt their brand value.

"You do not see Taobao, clap is making efforts to make changes, the fake goods, the goods are cleaned out, in order to rebuild the image of the online shopping, at the expense of some of the volume of pactions."

And some of the later business operators are also making an issue on quality. Just like Wang Yufeng, director of the network management, the e-commerce has entered the mid-term stage, and the price is early combo, and now it is about quality, service and logistics.

Yesterday, the news of Daphne's layoffs is a warning for the vertical electric business of footwear. Shenzhen electric shock Agel Ecommerce Ltd founder Gong Wenxiang said in micro-blog that Daphne gave up the electricity supplier, mainly because of the loss of tens of millions of dollars in the joint venture e-commerce project with Baidu before, and lost confidence.