E-Commerce Promotion: Clothing Brand Has Fallen Victim To Platform War

Is sales promotion a killer or a suicide weapon? When big platforms fight for price wars, who is paying for the price war? The brand merchants kidnapped by platforms are forced to participate in a "Hong men banquet" launched by the platform when they know that the sales promotion will hurt themselves.

　　 Jingdong promotions force brand choice

Recalling the situation of the day, Wang Jun said that the dilemma is still called a human obstruction.

"In September 3rd, Jingdong targeted clothing The brand has launched the latest sales promotion activity "buy 300 to send 1000 coupons", and 1000 yuan shop vouchers all need businessmen to come out. The sales promotion rule is that a single shop order of 300 yuan can get a total value of 1000 yuan coupons (the ticket can only buy the goods in the shop), the 1000 yuan coupons include 300 full reduction 300, 500 500 300, and one full 800 800 reduction ticket. This is equivalent to our products being forced by Jingdong to fight three to sixty percent off, "Wang Jun told reporters. He stressed that A enterprises are not using e-commerce channels to sell inventory enterprises, but online and offline synchronization. September is the new season for autumn clothing, so this is equivalent to allowing enterprises to sell new products at a price of three to sixty percent off.

"For our brand, below the tag price of less than sixty percent off of the sales, enterprises will start losing money, that is, Jingdong's activity is stuck at the critical point of losing money." Wang Jun said that after such a calculation, the original A brand was planning to participate in Jingdong activities. "In fact, at present, our sales volume in Jingdong is not large, that is to say, even if sales are below sixty percent off, there will not be much damage." On the contrary, the A brand looks at the high price of Jingdong and the potential for follow-up. "We also want to put eggs in different baskets so as not to be too dependent on a platform."

However, at this time, Tmall appeared, just like the Internet rumors, A brand has been forced by Tmall. Wang Jun recalls the front confrontation: "first the director of clothing of Jingdong personally called to communicate" buy 300 to send 1000 coupons "activities, we agreed. Then the people of Tmall told us that if we took part in the big promotion of Jingdong, then we could no longer participate in any activities of Ali, so we hesitated. Then the people of Jingdong told us that if they did not take part in this promotion, they would not support us. They also asked if they were threatened by Tmall. And we can only answer, "no! There's something wrong with the system."

Finally, A enterprises withdrew from the Jingdong promotion on the grounds of logistics system problems. In fact, it has also made a passive choice of "future husband family".

For this big promotion, Electronic Commerce Lu Zhenwang, an observer, said: "the Jingdong launched a big promotion of clothing, because the participation of famous brands is too little, it has not yet begun, it has ended."

　　 Platform price war, who will play?

Compared with the previous boom. " War between Beijing and Soviet Union "Jingdong and Tmall can only be called" secret warfare "in this round of clothing brand. However, electrical appliances manufacturers, who are more than billions of dollars in startup, are generally vulnerable to platform wars.

For them, if the price war is lower than the break even point, a war is a wound, but no war, even worse!

As Tsai Chung, director of the B e-commerce brand who has to take part in this big promotion, said, "although Jingdong platform is not large in scale at present, its growth is faster, and we dare not offend the platform. In addition, if we withdraw, the loss of money and the loss of customers will be very serious."

{page_break}

In fact, brand manufacturers are very passive in platform wars. In addition to possible losses, they may even lose their autonomy. In this event, Wei Wei, general manager of JASONWOOD electric business, revealed that there was no sign of any activity in advance. All the backstage brands sold on the Jingdong platform were all locked up. "We can't do without participation."

In response, Wu Sheng, senior vice president of Jingdong mall, responded publicly, "our activities are launched after full communication with suppliers. If suppliers do not agree with us, we will not force them to participate. In the final analysis, our communication with suppliers has always been benign."

Although the A brand as a related manufacturer said, Jingdong did consult with the brand manufacturers in advance, but it was also threatened by Jingdong and Tmall at the same time. So in fact, we have no say. We just made a choice on the surface. Wang Jun was deeply helpless about this.

In the long run, it can only hurt more. As "Louisa Xiaoxi" on micro-blog issued the name " Qiang Dong Liu "I'm not playing," the open letter pointed out, "we are not profiteering enterprises. In addition to the annual fees and deduction points of Jingdong, we always pay a lot for activities that are not for business at all, but what have we got?" "if anyone can carry on, then they can sell inferior goods or sell stocks, or play the same consumer as last time."