Jingdong'S Home Appliances Re Issued White Paper "Eleven" Will Eliminate Regional Differences

In September 22nd, the Jingdong mall and the China Electronic Commerce Association released the white paper on the 2014 Chinese household electrical appliances price survey and analysis.

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This is another important move for Jingdong in terms of household appliances following the white paper of Jingdong household appliance supplier and the white paper on price and service of Jingdong household appliances.

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"Disclosed that the current household appliances regional market price increases by degrees, the three or four tier household appliances prices are far higher than the price of online is very common.

Yan Xiaobing, vice president of Jingdong group and general manager of home appliances division, said that in order to eliminate this malformation in the household appliance industry, Jingdong will expand the storage and distribution scope of self operated household appliances through the channel sinking strategy, so that consumers in many district and county level markets can easily buy and purchase the household appliances with the same price nationwide.

Three or four line market consumers are subject to price discrimination under the line.

Yan Xiaobing pointed out that there is a clear gap between the market price of Chinese household electrical appliances online and offline. The price difference of the market below the line makes the price of household appliances in the three or four line market much higher than that on the online price, and the consumers in the three or four line Market suffer from price discrimination on the offline channel for a long time.

The average price difference between online appliance prices and household appliances prices in the four line market represented by districts and counties is 24%, and individual categories even reach as high as 38%.

In the field of small household appliances, where the price system is more chaotic, the price of offline channels may be up to 50% higher than that of online channels.

Yan Xiaobing believes that the average price of household appliances under the same grade is generally higher than that of the line, which is due to the cost structure of the offline channels, and on the other hand is the result of regional price protection.

"The household electrical appliance industry is a deformed industry. It is one of the few industries that have been sealed off by the region.

This phenomenon has become an urgent need to cure China's household electrical appliances price system.

In view of the regional price discrepancy of household appliances, Yan Xiaobing pointed out that Jingdong is working hard to solve the problem through channel sinking and expanding the scope of distribution, so as to achieve the national parity in the distribution area.

As of September 20th, the Jingdong has set up 38 major power storage warehouses in China, which has covered 29 provinces, autonomous regions and municipalities directly under the central government, totaling 1650 districts and counties, which is more than 3 times that of the end of 2013.

Vicious competition leads to complex models of household appliances.

Due to the competition among different sales channels, the competition of different sales areas has formed a huge number of product models and systems. There are hundreds of product models at any one household appliance category. It not only increases the difficulty of consumers' purchase, but also increases the manufacturing and circulation costs of manufacturers.

Yan Xiaobing pointed out that the most important source of the complicated model of household appliances is the vicious competition under the traditional offline channels. Manufacturers need to protect the interests of different channel sellers through a large number of different product models.

With the rise of home appliances online shopping market, the electricity supplier has a profound impact on the product model and pricing mechanism of home appliance manufacturers, which will help break the traditional pricing mechanism and increase the price in the circulation field to consumers.

Yan Xiaobing pointed out that in the Internet era, the centralized model and unified price marketing mode is being recognized by more and more manufacturers of household electrical appliances. At this stage, home appliance manufacturers should abandon the means of simply using different product models to divide the line and the offline market, and adopt more ways to create online proprietary brands to attract young consumer groups.

"Liberation eleven" Jingdong how to play

For the 8 week of September 22nd to October, which lasted for three weeks, Jingdong household appliances "eleven" greatly promoted, Yan Xiaobing said that Jingdong has prepared 1 billion WeChat red envelopes for consumers, and consumers can enjoy a huge reduction of up to 800 yuan and discount to 60 percent off.

Yan Xiaobing said that the "eleven" urged Jingdong to put forward the slogan of "liberation eleven", the theme of which is the national price of household appliances.

"Why is liberation eleven? No matter from the perspective of service or price, I feel that all consumers can no longer be deceived by the past because of asymmetric information, opaque prices, and ignorance of product functions, and buy unsuitable home appliances."

He said.

It is said that the "eleven" big promotion of Jingdong should not only carry out sales promotion on a large scale, but also offer coupons in various ways, and promote sales at low prices in stages. In addition, on the service side, it will also increase the channel in the three or four line market, so that more three or four line cities and rural consumers can buy home appliances with uniform prices.

According to him, at present, Jingdong has devoted nearly $100 million to advertising in the three or four tier market.